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  • Writer's pictureDr. P.K. Shrivastava


Updated: Jul 19, 2023


Indian climate nurtures the agrarian society and facilitates for rearing animals in all possible economic states, probably that is the reason, we get the quotes of animals rearing way back from Mahabharata period. Even the animal symbols found from Indus-Vally civilization suggest the importance of animals during those days. Milk for home consumption, getting drought animals for agriculture and use compost to reclaim the soil fertility, were the purposes of keeping dairy animals in India.

During ancient times animals were kept in large loose-herds (as referred in epic Mahabharata). Of late it became small & diverse farming. During the last century, in developed countries of the world, larger farms for milk & beef production were established. Currently in India, ever increasing cost of skilled labour, lack of technology at affordable cost, continuous escape of youth from villages to town in search of white colour jobs, etc., pushes Indian Dairy Farming to rear large dairy herds with possible automation.

Dairy business is successful, if done on scientific parameters. However, currently three main obstacles are being observed; (1) the required technical knowhow for organised dairy farming (2) availability of quality animal germplasm, especially of indigenous cows and buffaloes and (3) available land for cultivating green fodder, especially in view of the depleting soil fertility & common resource properties. Govt of India has come-up with a very good scheme, for larger farmers, entrepreneurs and companies of India.

What is Breed multiplication scheme?

The “Breed multiplication scheme” (BMS) is a Govt of India scheme under Rashtriya Gokul Mission, launched during October 2021 by Department of Animal Husbandry & Dairying, Govt of India, New Delhi, assigning its implementation to National Dairy Development Board (NDDB), Anand.

Who can apply:

The BMS is for progressive dairy entrepreneur/ aggregator/ individual farmers/ SHG/FPOs, FCOs/JLGs/Group 8 companies. The entrepreneur/ aggregator/ individual progressive farmer should own above 5 acres of land (or lease land for not less than 10 years of registered lease) and he is not black-listed by financial institutions. He is willing to take up the farming of 200 animals, to be inducted in the farm in 1st year of operation.

Outlay & Subsidy:

Scheme’s total outlay is of Rs 435 lakhs (Rs 4.35 Cr), of which Govt of India provides subsidy of 200 lakhs (2 Cr). The scheme requires that the farmer should, have its own green fodder cultivation farm, own manufacturing of cattle feed (CF) and established facility of AI and breeding. The farmer has to stock the dry fodder from the wheat and paddy cultivating areas, during the harvest time.

Breeding & sale of calves:

The technology used for breeding would be through ETT/IVF and sexed sorted semen. The entire AI facility with semen doses should be readily available at the farm to be used as and when required by the animals. The farm should have a trained staff to handle breeding activity including farm activities.

With the use of sex sorted semen, the ration of calf bon would be about 80:20 (female: male), of which the scheme demands that minimum 90 heifers would have to be sold-out to the nearby interested farmers on market rate to achieve the objective of high yielding germplasm propagation in the country. The farm will retain 20 heifers from the elitest of the elite dams for animal replacement at the farm. A few healthy male-calves from elitest of alite animals would be used by the state semen stations for semen production, which the farmer has to approach.

Chronology of events & release of Subsidy:

(1) Up-load the documents (6 Formats + 2 Annexures), with details of land records, training availed in animal husbandry, past-experience of animal rearing, certificate of association with local veterinary doctor to be associated with the project to provide services of treatment, prophylaxis and AI.

(2) At 3 pm of every 25th of the month NDDB will collect the up-loaded “Expression of Interest” with supportive documents for that month.

(3) The committee of experts will examine and appraise the application and arrive at the decision

(4) In the next month the applicant can see the status of his/her application online

(5) Once found OK, NDDB will communicate with the farmer to submit the DPR (If the DPR is not submitted with previous upload)

(6) After appraising the DPR, NDDB will send letter to the selected farmer with an instruction to the bank to start the process of lending the 1st leg of loan to the farmer

(7) The farmer would start implementing the project on ground with this loan amount

(8) Seeing the performance on the ground, the NDDB would process the application attaching the DPR and other necessary documents and forward to the DAHD, New Delhi for approval of subsidy. After approval of GOI, the 1st leg of the subsidy will be released.

Source of fund:

The scheme is open for self or bank-finance both. In case of bank-finance projects, beneficiaries’ contribution to be fixed as minimum 10 % of the total project cost, i.e. Rs 43.50 lakhs. In case of self-finance projects, beneficiary’s contribution shall not exceed 37.5% of the total project cost, i.e. Rs 163.12. Balance 50% of the project cost (limited to the tune of Rs 200 lakhs) will be subsidy.

How the subsidy will be released:

The subsidy will be released in 3 legs (1) 50% of the subsidy of Rs 200 lakhs, i.e. Rs 100 lakhs (2) 25% of the subsidy and (3) balance 25% of the subsidy after the 10% calf born at the farm. However, the 1st leg of subsidy would be as per the progress at the farm, observed by NDDB. NDDB may release the 1st leg of the subsidy in 4 equal installments of Rs 25 lakhs each.

What all need to be done in a year:

Recovery of loan:

The loan part would be recovered by bank/ financial institutions as per the term loan agreed at the time of taking loan. Subsidy need not to be re-paid. Generally, the term loan under this scheme is of 5 years with a few months of moratorium (as agreed by the lending bank). As per the general repayment schedule @10% interest for 5 year’s term, the interest to be paid in 5 years come to about Rs 65.00 lakhs, besides paying the loan of Rs 235.00 lakhs.

How to upload the formats /EOI:

Once you visit the site, you would be guided about details and formats, for that you need to register on the site. The upload of the format is very easy, if the formats are prepared in right way and being uploaded in sequence as directed by the site.

How to prepare DPR:

Model DPR is provided at the site, most of the hints are provided as how to prepare a DPR.

What support NDDB or the DAHD, Govt of India will provide:

Except appraising your documents, directing your desired bank to fund, appraising the DPR and arranging for the subsidy approval from DAHD and monitoring the project through GPS, through Geo tags, NDDB may not render any other support. Govt of India will always work through the implementing agency- NDDB.

The implementations of the activities at the farm are the responsibility of the farmer/individual or company. The list at Table 1 above indicates the tentative number of items.

From where to get the sex sorted semen:

Farmer has to arrange the sex sorted semen from state semen banks for the breeds they are rearing at the farm. Queries could be made to the NDDB to avail support of getting stock position at various semen banks of India.

How to arrange seeds for fodder cultivation:

Farmers can contact Director IGFRI Jhansi and Dharwad or nearby KVK for availing technologies for fodder cultivation, getting seeds and saplings, etc.

For any further details please login to and read the FAQ. Alternatively, contact some Dairy business consultant to support preparing DPR and help to correct the up-load formats provided at the above site. The companies or individuals can also visit to contact Dairy business consultant Dr PK Shrivastava, to avail advisory and documentary support.

We have published this blog, just to make things simple for the beneficiaries of the Breed Multiplication scheme, Govt of India.

Readers can also view the video for more clarification on the scheme;

Writer of the Blog:

Dr PK Shrivastava

Dairy Business Consultant & “Dairy Guru”

Phone: +91 8073147467

Utube handle: @PremKumarShrivastava

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