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Operational Guidelines on Poultry Venture on Poultry Venture Capital Fund (Subsidy) scheme

Department of Animal Husbandry, Dairying and Fisheries, (DAHD&F) GoI during the year 2005-06 launched a pilot scheme titled “Venture Capital Scheme for Dairy and Poultry”. (DPVCF). Regarding poultry, the main objective of the scheme was to to boost the unorganized poultry sector in States where development is in primitive state and also to give incentive and create infrastructure facilities for export of poultry products by organized sector from advanced States. As it was observed that the sector did not get adequate attention under the scheme, poultry components have been segregated into a separate scheme, viz., “Poultry Venture Capital Fund”,( PVCF )during the year 2009-10.

An evaluation of the scheme revealed that the financing agencies faced problems in implementation of the scheme in Interest Free Loan (IFL) mode . It also recommended provision of incentives for rearing of hybrid layers and broilers. Further, there are requests from many quarters including farmers, State Animal Husbandry Departments and banks to convert the mode of assistance under the scheme from IFL to capital subsidy mode.

After detailed discussions with all the stakeholders, it has been decided by DAHD&F, the nodal departments, to change the mode of implementation, revises the existing unit costs and brings some more components for assistance under the purview of the scheme.

Objectives of the scheme

  • To encourage poultry farming activity especially in non-traditional States and provide employment opportunities in backward areas
  • Improve production of poultry products which have ready market all over country
  • To improve productivity of un-scientifically run units through technology upgradation
  • Provide quality meat to consumers in hygienic conditions, and improve hygienic sale of poultry meat and products in urban areas and neighborhood societies through poultry dressing and marketing outlets.
  • Improve productivity and facilitate rearing of other poultry species like quails, ducks, turkeys etc which have good potential.

Implementing period and Area of operation
The revised scheme will be implemented during 2011-12 through out the country. The scheme will come into effect from 1 April 2011. Proposals sanctioned and disbursed on or after 1 April 2011 shall be covered under the scheme.


  • Farmers, individual entrepreneurs, NGOs, companies, cooperatives, groups of unorganized and organized sector which include Self Help Groups (SHGs), Joint Liability Groups (JLGs) etc.
  • An individual will be eligible to avail assistance for all the components under the scheme but only once for each component
  • When more than one member of a family is assisted under the scheme, the units set up by each member should be with separate infrastructure at different locations with distinct identity. The distance between the boundaries of two adjacent farms should be at least 500m.
  • Bio-security norms should be kept in view while locating the units.

Funding pattern

  • Entrepreneur contribution ( margin) - For loans upto Rs one lakh, banks may not insist on margin as per RBI guidelines. For loans above Rs 1.00 lakh : 10% ( minimum)
  • Back ended capital subsidy
  • Effective Bank Loan (excluding eligible subsidy as above) - Balance portion, Minimum 40% of the outlay

Linkage with credit
Assistance under the scheme would be purely credit linked and subject to sanction of the project by eligible financial institutions

Eligible financial institutions

  • Commercial Banks
  • Regional Rural Banks
  • State Cooperative Banks
  • State Cooperative Agriculture and Rural Development Banks: and
  • Such other institutions, which are eligible for refinance from NABARD.
  • Sanction by banks

Sanction by Banks
Projects other than large processing units, emu processing , feather processing and units for technology upgradation

  • The entrepreneurs shall apply to their banks for sanction of the project. The bank shall appraise the project as per their norms and if found eligible, sanction the total outlay excluding the margin, as the bank loan. The loan amount is then disbursed in suitable installments depending on the progress of the unit. After the disbursement of first instalment of the loan, the bank shall apply to the concerned Regional Office of NABARD for sanction and release of total eligible subsidy
  • Large processing units, emu processing , feather processing and units for technology upgradation In respect of these proposals, the financing bank shall submit the projects to concerned Regional Office of NABARD. After preliminary scrutiny, the proposals will be sent to NABARD Head Office and will be placed before National level Committee for sanction. The quantum of subsidy shall be decided by the Committee. Once the project is cleared, the financing bank would be advised, which in turn shall release first installment of loan and apply for release of advance subsidy to concerned Regional Office of NABARD. After completion of the unit, the bank shall apply for sanction and release of final installment of subsidy.

Project Sanctioning Committee( PSC)
PSC of NABARD Regional Office shall examine the proposals other than large processing units, emu processing, feather processing and units for technology upgradation, and sanction the subsidy in case of eligible proposals.

Implementation of Poultry (Year wise targets and achievements)

















For detailed circular, please see Poultry Venture Capital Fund

For more information, please visit http://dahd.nic.in/dahd/default.aspx
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