Revision of interest subvention under Diary Processing and Infrastructure Development Fund from 2% to 2.5%
The Cabinet Committee on Economic Affairs recently approved its revision of interest subvention rates from 2% to 2.5% per annum. This is being done under Diary Processing and Infrastructure Development Fund (DIDF).
Under the DIDF, GoI will now provide interest subvention up to 2.5% to NABARD till 2030. This shall enable NABARD in devising its own strategy of borrowing. In turn, it will be able to provide low cost of funds to milk unions.
There are more than 95 lakh milk producers that will be benefitted with this move. It will help in establishment of 28,000 milk coolers and create 210 metric tonnes of milk drying capacity.
The major activities that are covered under the fund includes chilling infrastructure, electronic adulteration testing kit, modernization of milk processing facilities and project management.
The DIDF Scheme was announced in Union Budget 2017-18 by the Ministry of Finance. Under the scheme DIDF considerable amount is contributed by NABARD to the National Diary Development Board and National Cooperative Development Corporation.