Meghalaya Dairy Development Scheme

The Chief Minister’s ELEVATE program, a flagship initiative by the Government of Meghalaya, is designed to engage and empower the youth through entrepreneurship, positioning them as active partners in the state’s development. This program provides comprehensive support to a diverse range of entrepreneurs, including individuals, collectives, village organizations, and traditional institutions, facilitating the establishment and growth of businesses across various sectors. Its primary goal is to foster employment, engagement, and empowerment among the youth of Meghalaya by promoting entrepreneurship and ensuring easy access to credit through collaboration with various banks as financial partners of the program. To mitigate the associated credit risks, the Government offers front-end subsidies in the form of down-payments and back-end subsidies in the form of EMI co-payments. Through this program, entrepreneurs, whether individuals, collectives, village organizations, various business entities, or traditional institutions, gain seamless access to a variety of schemes via a unified online portal. The program encompasses a wide array of sectors, including agriculture, horticulture, veterinary and animal husbandry, tourism, entertainment, sports, wellness, and any economically beneficial business ventures for the people of the state.

Download the scheme guidelines

Scheme Details

About

Aspiring entrepreneurs registered and un-registered entities in Meghalaya can access financial assistance and comprehensive support through the ELEVATE program. This support encompasses:

Financial grant and easy credit to the entrepreneurs: The financial support serves as a vital catalyst for entrepreneurs looking to invest in dairy farming.

  1. Skill Development and Training: The program offers skill development and training initiatives to enhance the capabilities of entrepreneurs.
  2. Capacity Building: Entrepreneurs receive capacity-building resources, helping them acquire the skills necessary for successful business management.
  3. Mentorship: Mentorship initiatives are available to guide entrepreneurs in their journey towards business success.
  4. Market Access: The program facilitates market linkages, enabling entrepreneurs to access broader markets for their products and services.
  5. Business Advisory Services: Entrepreneurs benefit from advisory services to make informed decisions in their business ventures.

Elevate – Dairy Scheme

An integral component of the Chief Minister’s ELEVATE program is Meghalaya Dairy Development Scheme. This initiative is designed to uplift the livelihoods of entrepreneurs by promoting dairy farming as a significant economic activity. Key details of this Scheme include:

  1. Credit-Linked scheme: The scheme operates as a credit-linked scheme, closely connected with a partner bank, and is implemented by the Department of Animal Husbandry & Veterinary.
  2. Economic Growth: The primary objective of this scheme is to contribute to the state’s economic growth by promoting and supporting dairy farming.
  3. Financial Assistance: Financial Assistance: The entrepreneurs will receive financial assistance of 50% of the total project costs including interest. The support provided includes capital assistance and operational support through EMI co-payment.
  4. Training and Capacity Building: Entrepreneurs are provided with training and capacity-building resources to assist in the establishment and management of their Dairy units.


Importance of Dairy in CM-ELEVATE

Dairy farming holds a crucial place in Meghalaya’s development landscape, forming an integral part of the Chief Minister’s comprehensive ELEVATE program. This endeavor encompasses a multifaceted approach that significantly impacts the state’s progress and nutritional well-being.

  1. Economic Significance: Dairy farming serves as a primary source of livelihood for a substantial portion of Meghalaya’s population. It generates substantial rural employment opportunities, particularly benefiting women. Cattle, the backbone of dairy farming, can efficiently transform surplus fodder and agricultural by-products into valuable milk and dairy products.
  2. Nutritional Benefits: Beyond its economic contributions, dairy farming plays a pivotal role in addressing nutritional challenges within the state. Milk, a fundamental dairy product, is a rich source of essential nutrients such as protein, calcium, and vitamins. These nutrients are vital for combating malnutrition and promoting overall health, particularly among Meghalaya’s residents.
  3. Government Commitment: The inclusion of the ELEVATE – Dairy Farming scheme within the CM ELEVATE program underscores the government’s steadfast commitment to nurturing dairy farming as a significant economic activity. This initiative aligns with the government’s vision to double the state’s GDP, with dairy farming anticipated to be a major contributor to achieving this ambitious goal.
  4. Fostering Entrepreneurial Resilience: Ultimately, the government aims to cultivate a resilient entrepreneurial ecosystem that not only sustains local businesses but also drives the overall development and prosperity of Meghalaya. Dairy farming, with its substantial economic and nutritional benefits, stands as a critical pillar in realizing this objective.
  5. Market Access: The scheme facilitates access to market linkages and additional resources to help entrepreneurs effectively sell their dairy farming produce.


Objectives

  • Economic Development: Meghalaya Dairy Development Scheme is poised to be a catalyst for driving Meghalaya’s economic development forward. By strengthening the dairy farming sector, which holds significant sway over the state’s agricultural GDP, the scheme aims to bolster overall economic prosperity.
  •  Promote Entrepreneurship: A key thrust of the scheme is to foster entrepreneurship within the dairy farming sector. By encouraging individuals to venture into dairy farming, we aim to stimulate economic growth and cultivate a resilient entrepreneurial ecosystem within the state.
  • Achieve Self-Sufficiency: Our vision is to enhance dairy production within Meghalaya to achieve self-sufficiency. This strategic goal aims to reduce dependence on imports from other regions, thereby promoting economic independence and bolstering the state’s self-reliance.
  • Combat Malnutrition: Meghalaya Dairy Development Scheme is committed to addressing critical nutritional challenges within the state. By increasing the per capita availability of dairy products, we seek to combat malnutrition and alleviate protein deficiency, thereby contributing significantly to the improvement of public health.
  • Skill Development: The scheme offers comprehensive training and capacity-building opportunities to entrepreneurs, empowering them with the skills and knowledge needed for successful dairy production while simultaneously nurturing entrepreneurship.
  • Livelihood Diversification: We encourage entrepreneurs to view dairy farming as a viable and lucrative livelihood option. Through this, we aim to generate employment opportunities, create additional income streams, and contribute substantially to overall economic development.
  • Women Empowerment: Meghalaya Dairy Development Scheme places a special emphasis on women’s empowerment in rural areas. By actively involving women in dairy farming activities and providing them with training and financial support, we aspire to uplift and empower women, enhancing their economic prospects and social standing.

Meghalaya Dairy Development Scheme is more than just a program; it’s a comprehensive strategy designed to drive economic growth, improve public health, and empower the people of Meghalaya. With these goals in mind, we are committed to realizing the full potential of the dairy farming sector within the state.

SchemeMeghalaya Dairy Development Scheme – 50% financial aid on the project cost to the entrepreneurs, involved in the animal husbandry sector, from the Government of Meghalaya and additional support such as trainings, capacity building programs and market linkage programs.
Who can apply?
  1. Individuals from Meghalaya
  2. Registered entities:  Any group/entity registered in Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organisation (FPO) and so on.
  3. Un-registered entities: Traditional institutions, shelf help groups, producer groups and so on based in Meghalaya

Note: Applications from following shall not be normally considered.

  1. Organizations with any political affiliation
  2. Individuals and their dependents from employees (current/retired and drawing pension) of central and state government, PSUs etc.
  3. Only one person from one family is eligible for obtaining financial assistance for setting up of projects under this Scheme.
Nodal department for the Elevate SchemeDepartment of Planning, Government of Meghalaya
Implementing agency of Elevate- Dairy SchemeDepartment of Animal Husbandry & Veterinary
Application procedureOnline application on the CM’s Elevate Scheme Portal


Role of The Animal Husbandry & Veterinary Department

The department is responsible for making sure that the scheme is implemented effectively and that entrepreneurs are successful. As part of this effort, they need to do the following:

  1. The department will provide technical support to entrepreneurs, on dairy farming practices, such as feeding, breeding, and disease prevention. 
  2. The department shall facilitate the supply or guide the entrepreneurs, of quality cattles and breeding stock to entrepreneurs, to improve the quality of their cattle’s.
  3. The department to organize training programs for entrepreneurs on dairy farming to help them improve their skills and knowledge. 
  4. The department will monitor the dairy sector to identify and address any problems that may arise.
  5. The department will facilitate convergence with other departments and schemes from time to time for the benefit of dairy farming entrepreneurs.

Eligibility

CategoryFormationPrimary CriteriaOther Criteria
Individuals from MeghalayaIndividual entrepreneursMust provide valid government ID proof with an address such as Aadhar Card, Voter ID, Passport and so on.
  1. Should possess land, either self-owned or on lease, verified by the competent authority
  2. Should possess a training certificate on the sector applied for from a recognized Institution, preferably from a Government Institute
  3. Preference for availing loans will be given to entrepreneurs and entities with prior experience of undertaking Dairy.
  4. The entrepreneur must have access to adequate and quality feed for the cattle.
  5. The entrepreneur must have a vaccination Scheme in place for the cattle.
  6. The entrepreneur must have a plan for marketing the dairy products.
  7. The entrepreneur’s village must be in an area where dairy farming is feasible.
  8. The distance between the entrepreneur’s village and the nearest market must be reasonable.
  9. The entrepreneur should not be a credit defaulter from any bank.
Registered Entities from MeghalayaAny group/entity registered in Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organization (FPO) and so on.
  1. Must provide an Incorporation Certificate or a registration certificate whichever is applicable.
  2. At least two members should possess a training certificate on the sector applied for from a recognized institution, preferably from a government institute.
Unregistered Entities from MeghalayaTraditional institutions, shelf help groups, producer groups and so on.
  1. Eligibility certification from competent government authority like BDO/SDO/Department in case of Producer group from DPMs.
  2. The non-registered entity must have a constitution/bylaws/framework that outline the group’s structure, objectives, and procedures.

Who Can Apply?

Entrepreneurs are required to complete the application process and submit all the required documents online on the CM-ELEVATE program portal.

  1. Individuals from Meghalaya 
  2. Registered entities:  Any association/group/entity registered in Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organisation (FPO) and so on.
  3. Un-registered entities: Traditional institutions, shelf help groups, producer groups and so on based in Meghalaya


Document Requirements

As proof of eligibility, the entrepreneurs are required to provide proof of their eligibility for the scheme by submitting the required documents mentioned below.

IndividualsRegistered EntityUnregistered Entity
  • A valid government photo identity with an address such as Aadhar Card, Voter ID, Passport and so on
  • Pan card, if available
  • A copy of the front page of the savings account passbook, if available.
  •  Incorporation/ Registration Certificate
  • Valid government photo identity with an address such as Aadhar Card, Voter ID, Passport etc of the President and the Secretary.
  • GST certificate, if applicable
  • Pan card, if applicable
  • Bank account statement for last 6 months, if applicable
  • Valid government photo identity with an address such as Aadhar Card, Voter ID, Passport etc of the President and the Secretary.
  • GST certificate, if applicable
  • Pan card, if applicable
  • Bank account statement for last 6 months, if applicable

Application Process

Entrepreneurs are required to complete the application process and submit all the required documents online on the CM-ELEVATE program portal.

Financing Plan

The figure below shows the overall summary of the financing of the project.

Financial partners
  1. Meghalaya Rural Bank (MRB)
  2. State Bank of India (SBI)
  3. HDFC Bank
  4. Northeast Small Finance Bank
  5. The Shillong Co-operative Urban Bank Ltd.

Credit details – Illustration to understand the payment terms
Loan Amount50% on the total project cost
Loan term5 years
Moratorium period12 months
Annual rate of interestVariable interest rates are applicable for partner banks.

Quantum and Nature of Assistance:
  • Financial Support:

Total down payment will be 50% of the project cost and the remaining 50% will be on credit through a bank loan. 

    1. 5% of the project cost is to be paid by the entrepreneur to the bank
    2. 45% of the project cost will be paid by the Government of Meghalaya to the bank.
  • EMI support: 

To reduce the burden of the operational cost on the entrepreneur in the first two years of business, Government of Meghalaya will support the entrepreneur by paying EMI co-payment equivalent to 5% of the project cost.

  • Additional support:
    1. Guidance in application process through implementing agencies
    2. Support in project realization of the business venture under this program
    3. Training and capacity building of the entrepreneurs to successfully run their business ventures under this program

Payment terms
Total project cost₹ 3,00,000
Total Downpayment/upfront50%₹ 1,50,000
Applicant’s upfront contribution5%₹ 15,000
Govt Upfront contribution45%₹ 1,35,000
Bank interest10.9%
Loan Term years5
EMI support from GoM5%₹ 15,000

**Annual interest rate may differ at the time of sanction of the loan and prevailing rate of the bank will be applicable.


EMI payment

 Downpayment  (₹)EMI Monthly (₹)
 1-6 months7-12 months13-18 months19-24 months25-36 months37-48 months49-60 months
Applicant’s Contribution15,0000 0 3,063 3,0634,313 4,3134,313
GoM Contribution1,35,000 001,250 1,250 0 0 0
Total1,50,0000 04,313 4,313 4,3134,313

4,313


Financial Aid Disbursement
  1. Down-payment support from the Government of Meghalaya will be transferred to the bank in favour of the entrepreneur within 15 days of receival of request from the bank.
  2. If entrepreneurs fail to produce the relevant documents and deposit the required margin money within the defined period of time of announcement of the results, the allotment will be automatically cancelled and passed on to the Entrepreneurs in the waiting list.
  3. EMI support will be deposited to the loan account of the entrepreneur based on the assessment of the criteria mentioned.


Application Portal Availability

The portal will be activated at regular intervals to accept applications.

Evaluation

Applications will be evaluated through a three-step process and following which the final list will be declared.

Shortlisting of applications:

Applications will be shortlisted based on the verification of all required documents mentioned above.

Evaluation of the shortlisted applications:
    1. The District level screening committee shall perform the initial screening of the applications based on the authentication of submitted documents and recommend the names to the State level committee. The Screening Committee may also do a physical background verification of the shortlisted applications.
    2. The State level sanction committee headed by senior most Secretary /Commissioner secretary/Secretary of the department will approve the recommendation by the district level committee and the same shall be communicated to the bank.
    3. The bank will take up with the entrepreneurs for the processing of the loan.

       

Personal interviews:

Personal interviews of the screened entrepreneurs may be conducted by the committee if necessary.

Determining annual target of the Scheme

The annual target of the Scheme will be annually determined by the nodal Department of Animal Husbandry & Veterinary and communicated to the nodal departments.

Steps to Access Financial Assistance


Implementation Agency

  1. Nodal department: Department of Planning, Government of Meghalaya
  2. Implementing Department: Department of Animal Husbandry & Veterinary 
  3. State Level:  Directorate of A.H & Veterinary

     

State Level CommitteeDistrict Level Committee
  • The department will notify the members of the committee from time to time
  • Representatives from the banks should be part of the committees

Terms and Conditions of the loan

  1. A triparted contract shall be signed at the time of sanctioning of the loan by each entrepreneur with the department and bank responsible for Program implementation.
  2. Must attend any training programs whenever provided by the government.
  3. Government of Meghalaya has the right to terminate the contract with entrepreneur if he/she is found not to abide by the terms and conditions of the contract and is found to be engaged in fraudulent /illegal/criminal activities.

Economic Benefit

Indicators:

Component (2 cows)Amount (per year)
Sale of Milk *₹ 4,39,200.00
Sale of cow dung**₹ 15,000.00
Revenue per year₹ 4,54,200.00
Feed₹ 50,000.00
Medicine₹ 5,000.00
Total expenditure₹ 55,000.00
Profit ₹ 3,99,200.00
EMI for Year 2 and Year 3₹2,552.00
Net profit per year₹3,96,648
Net profit per month₹ 33,054.00
EMI is ₹4,313 per 6 months for 5 instalments 
*12 litres per cow, 305 days lactation days market price-Rs 60 per litre
** 15 kg per day per animal, Market rate Rs. 1.5 per Kg
*** Market Rs. 35 per Kg, Paddy straws 1500 per month
Value-added productCost of productionSelling pricePotential profit
Cheese from cow milkRs. 20/kgRs. 50/kgRs. 30/kg
Yogurt from cow milkRs. 10/kgRs. 20/kgRs. 10/kg
Ice cream from cow milkRs. 30/kgRs. 50/kgRs. 20/kg
Powdered milk from cow milkRs. 25/kgRs. 40/kgRs. 15/kg
Compost from cow dungRs. 10/kgRs. 20/kgRs. 10/kg
Biogas from cow dungRs. 20/kgRs. 30/kgRs. 10/kg
Vermicast from cow dungRs. 30/kgRs. 40/kgRs. 10/kg


 Cost-Benefit Analysis

  1. Costs: This includes expenses related to training, financial aid disbursement, program administration, and other operational costs.
  2. Benefits: The benefits encompass increased income generated by participating dairy farmers, contribution to local and state economies through milk production and manure sale, and potential improvement in nutritional standards.

Economic Impact

The program’s economic impact extends beyond the individual participants. It contributes to the overall economy by creating jobs, stimulating economic activity in the dairy sector, and enhancing food security through increased milk production.

Social Impact

The Dairy Mission program not only focuses on economic factors but also assesses its social impact. This includes the empowerment of dairy farmers, improved livelihoods, and a potential reduction in malnutrition among beneficiary households.


Suggestions for maximizing profit in Dairy

  1. Enhance Milk Yield: Implement strategies to improve the milk yield of dairy animals, such as providing high-quality feed, proper healthcare, and a comfortable living environment.
  2. Breeding Practices: Opt for selective breeding to ensure healthy and productive cattle, thereby increasing milk production.
  3. Optimize Reproductive Practices: Time mating correctly to maximize the chances of successful insemination and calving.
  4. Nutrition Management: Ensure dairy animals receive a balanced diet to enhance milk production while controlling costs.
  5. Healthcare Management: Implement regular health check-ups, vaccinations, and deworming to maintain the health and productivity of the herd.
  6. Manure Utilization: Maximize the utilization of manure as an additional source of revenue through sales to the agriculture sector or for personal crop production.


Total unit Cost of Dairy Farm:

ParticularsAmount
Capital costAnimal cost @ 75,000 /heifer1,50,000.00
Animal shed75,573.00
Utensils & other farming hand equipment, water supply, rubber mate, chaff cutter and so on24,427.00
Recurring CostCost of feed @ 2 kg./animal of concentrate feed for 2 animals for 365 days @ 35/- per kg.50,000.00
Total3,00,000.00

** In this project, it is envisaged that simple semi-covered pens constructed of locally available materials like rough timber having a CGI sheet as roofing and concrete floor will be constructed. Several pens can be arranged in a row as required.

FAQs

Meghalaya Dairy Development Scheme is a credit linked scheme launched by Animal Husbandry & Veterinary Department under which financial aid of 50% on the total project cost, training, capacity building, and mentorship to help cows farmers improve their production, boost their income, and address nutritional challenges in the state. The project cost includes construction of shed; buying animals; cost associated with veterinary care and buying feed; and contingency cost.

Meghalaya Dairy Development Scheme is one of the 15 other bank linked schemes being launched under the CM-ELEVATE programs.

Animal Husbandry & Veterinary Department is implementing the scheme at state level.

Any  entity or group of farmers involved with agricultural products and legally registered with the government of Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organisation (FPO) etc.

Any entity or group of farmers such as village organizations, self-help groups, producer groups and any other traditional institutions based in Meghalaya who are not currently registered/incorporated with the government of Meghalaya.

No age limit for the entrepreneurs.

There is no application fee.

Currently the last date of application for the first phase of the scheme is 31st of October 2023.

Entrepreneurs could contact the helpline team through a call or email for any queries related to application process. 

Entrepreneurs can also contact the District Animal Husbandry and Veterinary Officer for any clarifications.

The application process will be processed and evaluated through district and state level committees which will be notified by the implementing agency from time to time.

You can send your grievance to the helpline number.

No changes will be applicable after submission. It is advisable that the applicants read and answer each question carefully and all changes should be made before submitting the application.

The scheme is offering 50% financial aid on the total project in the form of 45% as upfront support and remaining 5% as EMI co-payment for twelve months. The upfront contribution will be provided to the entrepreneurs in three instalments based on achieving various milestones of the project such as buying raw materials for shed construction, completion of shed construction and  buying animals.

You can receive 50% of the total project cost to start a piggery farm.

You can choose any of the partnered banks under the scheme based on your convenience and ease. The banks which are currently part of the scheme are Meghalaya Rural Bank (MRB), State Bank of India (SBI), HDFC Bank and Northeast Small Finance Bank.

The repayment period with 5 years inclusive of 12 months of moratorium period. 

Interest rates may vary depending on the bank you choose for credit support. You should inquire with the selected bank for specific interest rate details.

No, currently there are no pre-closure penalties for the loan.

The subsidy is disbursed to the entrepreneurs through financing partners under the scheme.

Trainings may be provided and the same will be notified by the Implementing Agency from time to time.

Yes, training provided by the Implementing Agency will be mandatory. 

Training locations will be notified by the Implementing Agency from time to time.

No, there is no fee associated with trainings provided by the implanting agency.

Duration of the trainings will be notified by the Implementing Agency from time to time.

You are requested to contact PRIME Hub or District Animal Husbandry and Veterinary Officer to inform about any challenges being faced at any stage of the project for any guidance and requirements.

Eligibility:

  1. Individuals from Meghalaya
  2. Any farmer’s association/group/entity registered in Meghalaya such as Cooperatives, Farmer Producer Companies (FPC), Farmer Producer Organisation (FPO) etc.
  3. Any unregistered entity such as village organizations, self-help groups, producer groups and any other traditional institutions etc.  based in Meghalaya can apply
  • lications from following shall not be ordinarily considered
  1. Pressure groups  and organizations that are primarily political in nature
  2. Government employees (currently employed or retired and drawing pension) and their dependents.
  1. Permanent residents of Meghalaya are eligible for the scheme
  2. Should possess land, either self-owned or on lease, verified by the competent authority 
  3. Should possess a training certificate on the sector applied for from a recognized Institution, preferably from a Government Institute 
  4. Preference for availing loans will be given to entrepreneurs and entities with prior experience of undertaking piggery
  5. The entrepreneur must have access to adequate and quality feed for the pigs
  6. The entrepreneur must have a vaccination Scheme in place for the pigs.
  7. The entrepreneur must have a plan for marketing the pigs and their products
  8. The entrepreneur ‘s village must be in an area where pig rearing is feasible.
  9. The distance between the entrepreneur’s village and the nearest market must be reasonable
  10. Must provide valid government ID proof with an address such as Aadhar Card, Voter ID, Passport etc.
  11. Shall be eligible for loan and shall not be a credit defaulter from any bank.
  1. A valid photo identity with address which includes Aadhar Card, Voter ID, Passport and driving license. 
  2. Aadhar card and Aadhar linkage with the bank is mandatory to receive the benefits of annual rate of interest subvention up to 3% on the purchase of refrigerated trucks.
  3. A letter of certification needs to be provided from the Block Development Officer (BDO) to support the claim for involvement in agriculture sector
  4. Pan card (Optional)
  5. Latest bank statement of 1 year (Optional)
  6. Trade license wherever, if available
  7. GST certificate and proof of return,  if available
  8. Any other document as specified by the department and financing bank.
Apply Now

Planning, Investment Promotion & Sustainable Development Department, Government of Meghalaya, 

Departments

  • Tourism Department
  • Animal Husbandry & Veterinary
  • Department of Agriculture and Farmers’ Welfare
  • Meghalaya Basin Management Agency, MBMA

Quick Links

Contact Us

Call Our Helpline: 1971 or 18002456851

Mail us at: help@cmelevate.in

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