Overview

DIDF was launched in 2017-18 by the Department of Animal Husbandry and Dairying (DAHD), Ministry of Fisheries, Animal Husbandry and Dairying, with NABARD as the nodal fund manager and NDDB/NCDC as implementing agencies. It channels concessional, long-term loans to the cooperative dairy sector to modernise ageing milk processing infrastructure, install village-level Bulk Milk Coolers (BMCs), and set up automated milk testing and quality-assurance equipment. The original outlay was ₹11,184 crore (2018-19 to 2022-23), funded through an ₹8,004 crore corpus with NABARD, with the Government of India providing interest subvention of up to 2.5% per annum (raised from 2% in 2020) to bring down the effective borrowing cost for End Borrowers. On 1 February 2024, the Cabinet Committee on Economic Affairs (CCEA) approved merging DIDF with the Animal Husbandry Infrastructure Development Fund (AHIDF) into a single umbrella Infrastructure Development Fund (IDF), extended up to 31 March 2026 with a revised cumulative outlay of ₹29,110.25 crore. Importantly, Dairy Cooperatives remain eligible End Borrowers under the merged scheme.

Key Benefits

• Loans to eligible dairy cooperatives and milk unions at a concessional effective interest rate (around 6.5% per annum after subvention), with a repayment period of up to 10 years and an initial moratorium of up to 2 years.
• Government interest subvention of up to 2.5% per annum on the loan, directly reducing the cost of borrowing for Milk Unions, State Dairy Federations, Multi-State Milk Cooperatives, and Milk Producer Companies.
• Funding support to replace outdated milk processing machinery with modern pasteurisation, chilling, and packaging lines.
• Capital assistance for installing village-level Bulk Milk Coolers (BMCs) to prevent souring of raw milk and cut post-harvest losses.
• Support for automated milk collection and electronic fat/SNF testing equipment, ensuring transparent, tamper-proof payment to milk producers.
• As of 31 August 2025, 33 projects had been sanctioned under the DIDF/AHIDF umbrella with a cumulative loan amount of ₹3,190.68 crore and disbursement of ₹2,310.01 crore.

Eligibility Criteria

• End Borrowers must be Cooperative Milk Unions, State Cooperative Dairy Federations, Multi-State Milk Cooperatives, Milk Producer Companies, or NDDB subsidiaries (private companies, MSMEs, Section 8 companies, and FPOs are eligible under the merged AHIDF/IDF window for allied infrastructure).
• The applicant entity must possess encumbrance-free land for setting up a new plant or expanding an existing one.
• Up-to-date, audited financial accounts for at least the preceding three years.
• No default on repayment to any bank or financial institution at the time of application.
• Outstanding dues payable to producer/farmer members must not exceed four payment cycles.
• The entity must have a positive net worth and a technically and financially viable project report.

Documents Required

• Certificate of registration/incorporation of the cooperative, union, or company.
• Detailed Project Report (DPR) prepared as per NABARD/NDDB appraisal format.
• Audited balance sheets and profit & loss statements for the last 3 years.
• Board resolution approving the loan application and project.
• Land ownership/lease documents and encumbrance certificate.
• No-default certificate from existing lenders (if any).
• PAN, GST registration, and KYC documents of the applicant entity and its authorised signatories.

How to Apply

1. Download the DIDF/AHIDF scheme guidelines and application format from the official DAHD portal at dahd.gov.in or the NDDB portal at nddb.coop.
2. Prepare a Detailed Project Report (DPR) covering the proposed plant capacity, machinery, BMC network, cost estimate, and repayment plan.
3. Submit the DPR and application, along with supporting documents, to NDDB (for dairy cooperatives/milk unions) or NABARD's regional office/participating nodal bank.
4. The project is technically and financially appraised by NDDB/NABARD; eligible borrowers receive a sanction letter specifying loan amount, tenure, and moratorium.
5. On sanction, the loan is disbursed in tranches linked to project progress and utilisation certificates.
6. The interest subvention is adjusted directly in the loan account by NABARD on a six-monthly basis so the End Borrower pays only the net subsidised interest.

Important Points

• DIDF has been merged into the broader Infrastructure Development Fund (IDF), which also subsumes AHIDF, with the scheme extended up to 31 March 2026 (₹29,110.25 crore revised outlay).
• Dairy Cooperatives continue to be eligible End Borrowers under the merged IDF/AHIDF framework effective from 1 February 2024.
• Delay or default in repayment can lead to withdrawal of the interest subvention benefit for the relevant period.
• Projects must be completed within the sanctioned timeline; cost or time overruns require fresh approval from NABARD/NDDB.
• Always verify the latest operational guidelines on dahd.gov.in before applying, as outlay figures and subvention rates are periodically revised by the CCEA.

Frequently Asked Questions (FAQs)

What is the Dairy Processing and Infrastructure Development Fund (DIDF)?

DIDF is a central government fund, created in 2017-18 and managed through NABARD with NDDB/NCDC as implementing agencies, that provides concessional long-term loans to dairy cooperatives for modernising milk processing plants, installing Bulk Milk Coolers, and setting up automated milk testing equipment.

Is DIDF still a separate scheme in 2026?

No. Since 1 February 2024, DIDF has been merged with the Animal Husbandry Infrastructure Development Fund (AHIDF) into a combined Infrastructure Development Fund (IDF), extended up to 31 March 2026. Dairy cooperatives remain eligible borrowers under this merged scheme.

Who can apply for a loan under DIDF/IDF?

Cooperative Milk Unions, State Cooperative Dairy Federations, Multi-State Milk Cooperatives, Milk Producer Companies, and NDDB subsidiaries can apply directly; under the merged AHIDF/IDF window, private companies, MSMEs, FPOs, and Section 8 companies are also eligible for allied dairy and animal husbandry infrastructure projects.

What is the interest subvention offered under this scheme?

The Government of India provides interest subvention of up to 2.5% per annum on the loan amount, which is adjusted directly in the borrower's loan account by NABARD, reducing the effective interest cost for the End Borrower.

What is the repayment period and moratorium for DIDF loans?

Loans are typically repayable over a period of up to 10 years, including an initial moratorium of up to 2 years during which the borrower is not required to repay the principal.

What kind of infrastructure can be funded under DIDF?

The fund supports modernisation of milk processing plants, installation of village-level Bulk Milk Coolers (BMCs), automated milk collection and electronic fat/SNF testing equipment, and related value-addition infrastructure such as packaging and chilling lines.

Where can I find the official application guidelines for DIDF/AHIDF?

The latest operational guidelines, eligibility norms, and application formats are published on the official DAHD portal at dahd.gov.in and the NDDB website at nddb.coop.

Does an individual dairy farmer get a subsidy directly under DIDF?

No. DIDF/IDF loans are extended to institutional End Borrowers such as milk unions, cooperatives, and producer companies, not directly to individual farmers. Individual farmers benefit indirectly through better milk collection infrastructure, timely BMC chilling, and transparent fat/SNF-based pricing at their village dairy society.