Karnataka - Bellary   

Venture capital funding to promote dairy farming, poultry

Staff Correspondent

BELLARY: The National Bank for Agriculture and Rural Development (NABARD) has launched the "Venture capital fund for dairy/poultry sectors" to extend financial assistance for the development of dairy and poultry sectors in the country.

Under the scheme, farmers or entrepreneurs and groups from the unorganised or organised sector are eligible to avail themselves of financial assistance in tune with the priority accorded by the Union Government to increase milk, egg and meat production to meet the needs of the growing population of the country. The main objective of the scheme is to create a venture capital fund to provide financial assistance to individuals, non-governmental organisations, private sector undertakings, cooperatives and the like to promote dairy farms.

The fund also aims to bring about structural changes in the unorganised sector processing and marketing of pasteurised milk at the village level, upgrading of traditional technology to handle milk on a commercial scale, boost the unorganised poultry sector in States where development is in a primitive state, and give incentives and create infrastructure for export of poultry products.

The beneficiaries have to invest only 10 per cent of the total cost while NABARD will grant 50 per cent of the cost as an interest-free loan.

The remaining 40 per cent will come in the form of a bank loan. NABARD will also shoulder 50 per cent of the bank interest component. In addition, NABARD has volunteered to subsidise 50 per cent of the interest for beneficiaries who promptly repay the loan.

Preference will be given to traditional sweet makers (halwais) to improve the quality and hygiene of their products. In poultry, preference will be given to "pheriwalas," which will help generate self-employment opportunities for the urban poor. Veterinary science graduates will be considered for loans under the veterinary clinics component.

The scheme will be implemented with an allocation of Rs. 7.2 crores for the current year, and the total revolving fund assistance during the 10th five year plan is Rs. 25 crores. The scheme will be implemented in all States by commercial banks, regional rural banks and cooperatives.

The implementation of the scheme will be monitored by State-level review and disbursement committees and by a joint monitoring committee at the national level.

Banks have been instructed to bring to the notice of their controlling offices/branches the details of the scheme and initiate steps for its implementation.

H.A.P. Rao, Assistant General Manager, NABARD, has appealed to all farmers and entrepreneurs to avail themselves of the scheme.

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Venture capital funding to promote dairy farming, poultry

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