Project Overview


Government of India (GoI) has approved the “Dairying through Cooperatives - Key to sustainable livelihood” project as Component B of the National Programme for Dairy Development (NPDD) scheme. Administrative Approval along with Operational Guidelines of the scheme was issued on 03 August 2021.


“To increase sales of milk and dairy products by increasing farmers' access to organised market, upgrading dairy processing facilities and marketing infrastructure and enhancing the capacity of producers owned institutions, thereby contributing to increase in returns to milk producers in the project area”.

Project Area:

The project will cover all the districts in the States of Uttar Pradesh and Bihar. The priority will be given to socially and economically backward districts having dairying potential (includes all 21 aspirational districts).

Project Period:

2021-22 to 2025-26 and will continue till 2027-28.

Project Outlay:

Total outlay of the project is Rs. 1568.28 Crore comprising Rs. 924.56 Crore as an ODA loan from Japan International Cooperation Agency (JICA), Rs. 475.54 Crore as Government of India’s (GoI) contribution and Rs. 168.18 Crore as State/Participating Institution’s (PI) contribution.


The components of the project are as under:
I. Strengthening Milk Procurement Infrastructure
II. Milk Processing Facilities and Manufacturing Facilities (milk & milk products and cattle feed)
III. Support for Marketing Infrastructure
IV. Support for ICT Infrastructure
V. Productivity Enhancement
VI. Project Monitoring and Studies
VII. Training and Capacity Development



Name of Component/activities

Funding Pattern


Strengthening Milk Procurement Infrastructure



- Milk collection accessories, all milk testing equipment at village level & Dairy Cooperative Society (DCS) establishment

Grant – 90%;

PI’s Contri. – 10%


-  Capital cost on BMC, AMCU/DPMCU and Building for village level producers’ institution

Loan – 50%,

Grant – 50%


Milk Processing Facilities and Manufacturing Facilities (milk & milk products and cattle feed)

Loan – 90%

PI’s Contri – 10%


Support for Marketing Infrastructure

Loan – 80%

Grant – 20%


Support for ICT Infrastructure


Productivity Enhancement

Grant – 90%

PI’s Contri. – 10%


Project Monitoring & Studies/ Project Management & Learning

Grant – 100%