Objectives

• To develop private entrepreneurs for undertaking cattle and buffalo breeding.
• To make available disease-free high yielding heifers/ pregnant heifers / cows preferably of indigenous breeds of cattle/buffalo.
• To incentivize private individuals Entrepreneurs, FPOs, SHGs, FPCs, JLGs, and Section 8 companies for establishment of breed multiplication farm.
• Spreading awareness about scientific management practices including animal nutrition, disease prevention etc .
• Multiplication of high yielding milch animals through scientific breeding including IVF technology and sex sorted semen

Eligible Borrowers

• The entrepreneur-aggregator can be a private individuals / FPOs / FPCs/SHGs /JLGs and Section 8 companies.

Eligibility criteria

• Entrepreneur shall have appropriate experience in breeding or rearing of farm animals.
• The entrepreneur will be responsible for arrangement of land of suitable size and location. At least having ownership/lease deed of suitable size of land to house 200 animals and its followers.
• Any individual/ organization availing loan facility under Animal Husbandry Infrastructure Development Fund (AHIDF) for establishment of breed multiplication farm would also be allowed to obtain subsidy under breed multiplication farm.
• Entrepreneur will make its own arrangement for procurement of feed and fodder as per requirement of the farm. The entrepreneur will establish breed multiplication farm of atleast 200 milch cows / buffalo and using latest breeding technology for continuously upgrading stock.
• The entrepreneur may make available 116 elite female calves to farmers on cost basis out of 160 calves born at the farm. Sex sorted semen and IVF technology will be used by the entrepreneur for production of female calves. Remaining female calves may be used for replacement of the stock available at the farm.
• The entrepreneur will make available high yielding heifers/ pregnant heifers/cows to the farmers / small entrepreneurs interested in taking up dairying. The entrepreneur will also guide farmers on animal nutrition, vaccination, disease testing, maintaining bio-security etc and also provide veterinary aid to the farmer

Purpose

Establishment of breed multiplication farm.

Nature of facility

• Term loan – RA009
• Cash credit - CCAHF

Quantum of Loan/ Project Cost

Project cost:

• It is estimated that an amount of Rs 4 crores will be required for establishment of breed multiplication farm with the capacity of 200 milch animals.
• Therefore, maximum subsidy will 50% of the project cost (Capital cost and animal cost) or Rs 2 crores whichever is lower.

Margin

• Upto Rs 1.60 lakhs: Nil

• Above Rs 1.60 lakhs: Minimum of 10%.

Rate of interest

• As per the bank guidelines on rate of interest as per IC No 1974- 2020 dated: 27.03.2020.

Delegated authority

• As per the extant guidelines on delegated authority.

Service charges

• As per the bank guidelines on service charges as per IC No 3454-2022 dated: 25.07.2022 and issued from time to time.

Security

Security documents

• DP Note
• Hypothecation agreement - SD-07
• Deed of Guarantee - SD –08
• Declaration/Undertaking for Agriculture Advance-AD-01
• Interest rate agreement – SD 24
• Mortgage deed– SD–12 (for SM) OR AD-13(for EM)
• Letter of Continuity – AD 09(M)
• Letter of General Lien and set off – AD 02(A)
• Undertaking from borrower/Guarantor for disclosure to CIBIL
• Any other document stipulated in Sanction advice

Insurance

• Component of insurance is included in the project cost
• Comprehensive Insurance for assets created including livestock insurance, with bank clause.
• Comprehensive insurance for the property mortgaged to the Bank with bank clause.

Disbursements

• Disbursement of loan amount along with margin will be made directly to supplier through DD/ NEFT/RTGS & obtain original bills & receipts & other disbursement norms to be followed.
• Disbursement in stages depending on schedule of implementation & end use verification should be done at every stage of disbursements. Relative invoices / bills for assets financed if any should be obtained and held on record.

Repayment period

• Maximum 84 months repayment period including moratorium period can be allowed for term loan. Moratorium period may be allowed depending on size of unit with maximum up to six months.

Due diligence

• Thorough due diligence of Borrower, Guarantor, Supplier / Dealer of vehicle & Land Record should be carried out as per extant guidelines on Due Diligence.

Post sanction monitoring

• Post-sanction inspection &periodical follow-up inspection to be undertaken and report should be prepared and held on record.

Other terms and conditions

• Veterinary certification of good health/fitness of milch animals should be taken before purchase of animal and held on record.
• Milch cattle purchased should be high yielding breed.
• As far as possible purchase of milch animals should be from marketing federation.
• Payment should be made directly to vendor of milch animal along with margin Money.
• Processing of credit needs of the dairy unit should be assessed as per usual procedure together with calculation of economics of Business and surpluses derived for repayment of advanced after sustenance of the family of the borrower.

Funding pattern / Subsidy

• Each entrepreneur will be provided as onetime assistance from Central Government for establishment of breeder farm @ 50% of project cost. The other 50% should be managed by the beneficiary by obtaining loan from scheduled banks/ any other financial institutions like NCDC etc.
• Loan period, margin money and collateral may be as decided by the financial institution.
• The capital subsidy will be provided for the cost of housing, procurement of breeding animals along with transportation & insurance cost, equipment /machines in the form of capital cost (except land).
• The subsidy will be routed through NDDB

Implementing Agency

• Project will be implemented through NDDB as implementing agency of the project.
• Subsidy will be released directly to the beneficiary’s loan account through NDDB.

Project Approval and Monitoring

• As mentioned in the annexure.

Minimum pre-qualification criteria

Sourcing of animals

• Pure bred animals of indigenous breeds will be procured from breeding tract or from recognized farm/farmers to ensure quality/breed purity of animals.
• Animals will be selected on the basis of the dams performance (breeding value, lactation yield & milk fat %) and sires’ information.
• The animals at the farm should meet the minimum standards of dam’s lactation mentioned in the MSP of Bovine Frozen Semen Production.
• In addition to this sexed elite semen available with semen stations or imported semen of indigenous breeds will be utilized for further genetic upgradation of stock.

Technical Programme: 

• 200 cows/ buffalo of high yielding preferably of indigenous breeds (Exotic/Crossbred animals can also be inducted) will be inducted at the farm. Animal of indigenous breeds (true to the breed) like Gir, Sahiwal, Red Sindhi, Tharparkar etc in case of cattle and like Murrah, Mehsana, Banni, Jaffarabadi, Nili Ravi etc in case of buffaloes will be purchased by the Entrepreneur. The animals at the farm should meet the minimum standards of dam’s lactation mentioned in the MSP of Bovine Frozen Semen Production. 
• Animals will be inseminated with sexed semen preferably of progeny tested bulls with dams lactation yield above 4000 kgs in case of indigenous cattle/ buffalo breeds. Semen straws will be purchased from different semen stations in the country. 
• Farm may use IVF technology and implant embryos of indigenous cattle/buffalo breeds with high yielding potential. In embryo production donor of indigenous cattle/buffalo breeds may be yielding more than 4000kg and semen may be from indigenous cattle /buffalo bulls with dams lactation yield above 4000 (in case of Kankrej more than 3000 kg and in case of Tharparkar more than 3500 kg). Bulls used in embryo production preferably progeny tested/ genomically tested. 
• About 126 female calves and 14 male calves will be born at the farm annually. 20 female calves from the elitist of elite dams will be retained at the farm for replacement of the herd @ 20% per annum. Minimum 90 female calves/pregnant heifers would be sold to the farmers in the region in case of cattle farm. For buffalo, minimum 70 female calves/pregnant heifers may be sold to the farmers. 
• Animals will be tested annually for Tuberculosis, Johnes Disease (JD), and Brucellosis and positive animals will be removed from the herd. Herd will be declared free of above diseases. The animals will be vaccinated against FMD (six month interval), HS (annually), BQ (annually), and Theileriosis (once in lifetime in case of exotic/crossbreds). However, the vaccination against the bacterial diseases will be done only if there is an outbreak or prevalence of a particular disease in the State. Exotic animals will also be tested for genetic disorders.
• Model technical programme: