Fodder Value Addition Units
Get up to 50% capital subsidy under the National Livestock Mission for establishing modern fodder processing units.
Key Features of the Scheme
50% Capital Subsidy
Get up to ₹50 lakhs as back-ended capital subsidy for establishing fodder value addition units.
Easy Application
Simple application process with support from State Implementing Agency throughout the project.
Business Growth
Enhance your agricultural business with modern fodder processing technology and equipment.
Overview
About Fodder Value Addition Units
Fodder Value Addition Units are specialized facilities designed to process and enhance the nutritional value of animal feed. These units play a crucial role in addressing fodder scarcity and improving livestock productivity across India.
Under the National Livestock Mission (NLM), the Department of Animal Husbandry & Dairying provides substantial financial support to establish modern fodder processing units that can prepare hay, silage, total mixed ration (TMR), fodder blocks, and provide storage solutions.
The scheme aims to promote scientific fodder management practices, reduce wastage, improve nutritional quality, and ensure year-round availability of quality fodder for livestock.
Scheme Details
Benefits
Establishing a Fodder Value Addition Unit under the NLM scheme offers numerous advantages for farmers, entrepreneurs, and the livestock sector.
Financial Support
Receive up to 50% of the project cost as capital subsidy, with a maximum limit of ₹50 lakhs, significantly reducing your initial investment burden.
Business Opportunity
Tap into the growing demand for processed fodder products and create a sustainable business model with steady income throughout the year.
Modern Technology
Access to modern machinery and equipment for fodder processing, including balers, harvesters, chaff cutters, and specialized processing units.
Year-Round Supply
Process and store fodder during peak production seasons to ensure availability during lean periods, addressing seasonal scarcity issues.
Quality Improvement
Enhance the nutritional value of fodder through processing techniques like silage making, TMR preparation, and fodder block formation.
Employment Generation
Create employment opportunities in rural areas by establishing processing units that require skilled and semi-skilled workers.
Eligibility Criteria
To qualify for the Fodder Value Addition Units subsidy under the National Livestock Mission, applicants must meet the following criteria:
Land Ownership
The applicant must have own land or leased land suitable for establishing a fodder value addition unit. Proper documentation of land ownership or lease agreement is required.
KYC Documentation
All applicants must provide complete Know Your Customer (KYC) documents, including identity proof, address proof, and other relevant documentation as required by the implementing agency.
Financial Arrangements
The applicant must have secured a bank loan for the project, with proper sanction letter from the bank. For self-financed projects, the applicant needs to provide a bank guarantee from a scheduled bank along with project appraisal for its validity by the bank where the account is held.
Technical Expertise
The applicant must either have obtained relevant training, have trained experts, possess sufficient experience, or have technical experts with adequate experience in managing and running fodder processing units.
Not Eligible for Subsidy
The following components are not eligible for subsidy under this scheme:
- Purchase of Land
- Lease or Rent Payments
- Purchase of Car for Personal Use
- Office Setting Expenses
Eligible Components
The following components are eligible for subsidy under the Fodder Value Addition Units scheme:
Fodder Value Addition Units
These include facilities for preparation of Hay, Silage, Total Mixed Ration (TMR), Fodder Block, and storage of fodder.
For Silage Making Unit
- Bailing Equipment
- Harvester
- Power Operated Chaff Cutter
- Installation Cost of Plant and Machinery
- Shed for Machinery Storage
For Fodder Block Making Unit
- LD-HD Cutting with Electric Motor Starter, Panel Board, V-belt, Pulleys, etc.
- HD-LD Mixer Complete with Electric Motor
- Densified TMR Block Maker with Electric Motors Starter, Hydraulic Oil, Cooling System
- Platform Electronic Weigh Scale
- Main Control Panel Complete with Starter Contractors, Relays Meter, Conduits, and Fittings, Cable Trays, etc.
Additional Eligible Components
- Stitching Machine Double Thread
- Molasses Storage Tank OH Molasses Tank Capacity
- Grinding Section with Elevator Motor and Magnet
- Bin for Grindables in M.S. Handle Operated
- Hammer Mill Half Circle with Sieve and Motor
- Mixing Section with Material Lifting Elevator
- Paddle Type Batch Mixture with MS Construction
- Power Supply (Gen Set)
- Shed for Machinery
- Shed for Storing Raw Materials
Application Process
Follow these steps to apply for the Fodder Value Addition Units subsidy under the National Livestock Mission:
Step 1: Prepare Project Report
Develop a detailed project report (DPR) for your Fodder Value Addition Unit, including technical specifications, financial projections, and implementation plan.
Step 2: Arrange Financing
Secure a bank loan for the project or arrange self-financing with necessary bank guarantee. Ensure you have all financial documentation ready.
Step 3: Submit Application
Submit your application along with the DPR and all required documents to the State Implementing Agency (State Animal Husbandry Department).
Step 4: Project Approval
The State Implementing Agency will review your application and project report. Upon approval, you will receive an official sanction letter.
Step 5: First Installment Release
The first installment (50% of the subsidy) will be released after the bank releases the first installment of the loan and confirmation by the State Implementing Agency.
Step 6: Project Implementation
Implement the project as per the approved specifications and timeline. Ensure proper documentation of all expenses and progress.
Step 7: Second Installment Release
After completion of the project, the State Implementing Agency will verify the implementation. Upon successful verification, the second installment (remaining 50% of the subsidy) will be released.
Important Notes:
- The subsidy amount will be credited to the loan account of the beneficiary to reduce the loan liability.
- The State Implementing Agency will monitor the project for 2 years after completion to ensure proper operation.
- Any deviation from the approved project plan may result in cancellation of the subsidy.
Frequently Asked Questions
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