Industrial Subsidies India: NABARD Dairy Processing Infrastructure Fund

The Dairy Processing and Infrastructure Development Fund (DIDF), managed by NABARD, continues to be a cornerstone for Indian agri-exporters looking to modernize their manufacturing facilities. The scheme provides a significant interest subvention of 2.5% per annum, making large-scale credit more accessible for MSMEs and cooperatives. Under this initiative, financial assistance is targeted toward the modernization of milk processing units, the creation of chilling infrastructure, and the establishment of electronic milk testing equipment. As per the NABARD DIDF operational guidelines, the objective is to enhance the value chain, ensuring that Indian dairy products meet international quality standards for export markets. ## Key points * **Interest Subvention:** A 2.5% reduction in interest rates on term loans provided by NABARD. * **Modernization:** Funds can be utilized for replacing obsolete machinery with energy-efficient processing lines. * **Eligibility:** Includes FPOs, cooperatives, and private companies with established dairy clusters. This subsidy is vital for exporters aiming to penetrate markets with stringent SPS (Sanitary and Phytosanitary) requirements, as it reduces the capital burden of upgrading to world-class hygiene standards.