National Programme for Dairy Development (Revised NPDD)
Funded in the 2026-27 Union Budget: Union Expenditure Budget 2026-27 (Feb 2026, Demand No. 44 (Department of Animal Husbandry and Dairying), item 9 Dairy Development, BE 2026-27 ₹1055.00 crore (Revenue ₹655.00 crore, Capital ₹400.00 crore); Notes item 9 (release of funds to Milk Unions/State Milk Federations for approved projects))
Dairy farmers get village milk societies, bulk milk coolers, milk-testing machines and free training through their milk union: the Centre pays 50% of approved society and cooler costs (75% in the North-East, hilly areas and UTs), 35% (up to ₹15 crore) to set up a milk producer company, and 100% of farmer training.
- Lead benefit
- 50%of the cost, at most (75% in the North Eastern Region and Union Territories)
- Components
- 3each read from the document
- Who can apply
- Allapplicants
- Closing date
- Noneapply any time
What it pays
Setting up a village dairy cooperative society and its bulk milk cooler under a milk union’s approved project: the Centre pays 50% of the cost (75% in the North-East, hilly areas and Union Territories).
What the document says, word for word
The 75% rate also covers "Hilly Area", which the guidelines do not list; if you are in a hilly state, ask your milk union which rate applies. Village-level milk-testing laboratories at the society or cooler (cl. 5.4.1) get 50% (70% in NER, hilly areas and UTs) (cl. 6.1.2.4).
“6.1.2.1. Milk Procurement (Setting up of DCS): For Milk Unions/ Federations of North Eastern Region (NER), Hilly Area & Union Territories (UTs): central assistance would be 75%. For other States: central assistance would be 50% 6.1.2.2. Milk Chilling -Support for Bulk Milk Coolers (BMC): For Milk Unions/ Federations of NER, Hilly Area & UTs: central assistance would be 75%. For other States: central assistance would be 50%”Setting up a milk producer company (mobilising members, registration, procurement and chilling, office costs for 3 years, micro processing): the Centre pays 35%, up to ₹15 crore.
What the document says, word for word
Proposals for milk producer companies and FPOs go through the National Dairy Development Board (para 2.2). The 35% applies to the approved project cost.
“6.1.2.8. Establishment of 2 Milk producer Company: Central assistance would be 35% (maximum Rs 15 Cr) for all States and UTs”Dairy farmers in a project area get a farmer induction programme and training in clean, hygienic milk production, paid fully by the Centre.
What the document says, word for word
“5.6.1. Farmer Induction Programme including Training of farmers in good hygienic practices/ good manufacturing practices … 6.1.2.6. Training & Capacity building: Central assistance would be 100% for all States and UTs”How much can I claim?
This clause does not fund this applicant type (Appendix-I (Component A), cl. 5.1–5.2, 6.1.2.1–6.1.2.2).
Who can apply
- All applicants
Papers you need
- Detailed Project Report, prepared by the milk union, federation or producer company
- Undertaking that the same work is not funded under any other central or state scheme
- Quotations, tender papers or purchase orders backing the cost of equipment and civil works
- Balance sheet and profit-and-loss account of the last financial year
- FSSAI, ISO, HACCP or similar certificates of the dairy plant
How to apply
- This is not a scheme an individual farmer applies to: benefits reach dairy farmers through farmer-owned bodies — milk federations and unions, dairy cooperatives, FPOs/milk producer companies and SHG federations (Guidelines para 2, 2.1).
- To get a dairy cooperative society, bulk milk cooler or milk-testing unit in your village, ask your district milk union or state dairy federation to include it in its project report (App. I cl. 5.1, 5.2, 5.4).
- The union or federation prepares the Detailed Project Report; the State Level Technical Management Committee recommends it and DAHD’s Project Sanctioning Committee approves it (App. I cl. 7.2, 7.6, 8.6). Proposals for new societies under White Revolution 2.0 go to DAHD through the State Government without SLTMC recommendation (cl. 8.7).
- Milk producer companies and FPOs send their proposals through the National Dairy Development Board; SHG-run dairies through the State Rural Livelihood Mission (para 2.2).
Applying is free. Never pay anyone to apply for you.
When to apply
The guidelines set no closing date.
Combining with other schemes
The documents do not say whether this can be combined with other schemes. Ask the implementing office before you count on both.