Department of Animal Husbandry, Dairy and Fisheries, (DAHD&F) Gol during the year 2005-06 launched a pilot scheme titled "Venture Capital Scheme for Dairy and Poultry". The main objective of the scheme was to extend assistance for setting up small dairy farms and other components to bring structural changes in the dairy sector. Assistance under the scheme is extended in the form of Interest Free Loan (IFL) to individuals, SHGs, NGOs, Cooperatives, companies for selected components. As on 31 March 2010, 15368 units were extended IFL assistance of Rs 146.91 crore through out the country.
An evaluation of the scheme revealed that the scheme had created a major impact in the area of financing of milch animals in some States and the farmers at ground level derived benefit from the scheme. The study has recommended to remove the restrictive clause on financing of milch animals in Operation Flood areas. Further, there are requests from many quarters including farmers, State Animal Husbandry Departments and banks to convert the mode of implementation of the scheme from IFL to capital subsidy mode.
After detailed discussion with all the stakeholders, it has been decided by DAHD&F, the nodal department to change the mode of implementation, revise the existing unit costs and bring some more components for assistance under the purview of the scheme. As the scheme aims at promoting entrepreneurial qualities, the revised scheme has been named as "Dairy Entrepreneurship Development Scheme"(DEDS.)