दुग्धशाला विकास विभाग, उत्तर प्रदेश
Dairy Development Department, Uttar Pradesh

For establishment or expansion (only in case of minimum 25% increase in existing capacity) of milk processing and milk product manufacturing dairy units in all the districts of state, capital grant of 10 percent of the cost of plant machinery, technical civil works and spare parts, subject to a ceiling of Rs. 5.00 crore will be made available.

For setting up a new milk processing and milk products manufacturing dairy unit, reimbursement of 5% of the rate of interest payable on loan taken for plant machinery, technical civil works and spare parts or the actual rate, whichever is less, will be permissible for 5 years subject to a ceiling of Rs 10.00 crore.

For setting up a. new cattle feed and cattle nu ritional..products manufacturing unit, reimbursement of 5% of the•rate of i'llterest payable on loan• taken for plant machinery, technical civil works and spare parts or the actual rate, whichever is less,will be permissible for 5 years subject to a ceiling of Rs 7.50 crore.

For technological upgradation in an existing dairy plant like installation of SCADA System, New Generation Technology machinery and equipment etc, reimbursement of 05% of the rate of interest payable on loan taken or the actual rate, whichever is less, will be permissible for 5 years subject to a ceiling of Rs 2.50 crore.

For Traceability and quality control equipment like automatic milk collection units (other than cold chain) in the field outside the dairy plant, reimbursement of 05% of the rate of interest payable on loan taken or the actual rate, whichever is less, will be permissible for 5 years subject to a ceiling of Rs 1.00 crore.

For installation and purchase of cold chain system like refrigerated Van/ Insulated Van/ Road Milk Tanker, Bulk Milk Cooler, Ice Cream Trolley etc, reimbursement of 05% of the rate of interest payable on loan taken or the actual rate, whichever is less, will be permissible for 5 years subject to a ceiling of Rs 1.00 crore.

In case of minimum 25% increase in th_eexisting capacity, for the loan taken for purchase of plant and machinery, reimbursement at the rate of 05% of the rate of interest payable on loan or the actual rate, whichever is less, will be permissible for 5 years subject to a ceiling of Rs 2.50 crore.

In case of minimum 25% increase in the existing capacity, for the loan taken for purchase of plant and machinery, reimbursement at the rate of 05% of the rate of interest payable or actual rate, whichever is less, will be permissible for 5 years subject to a ceiling of Rs 2.00 crore.

For loans taken for establishment of plant machinery in units man facturing value added milk products like cheese, ice cream etc. which fall under micro and small enterprises sector, reimbursement at the rate of 05% of the rate of interest payable or actual rate, whichever is less, will be permissible for 5 years subject to a maximum of Rs 2.00 crore.

(i) The following grants and concessions will be provided for marketing to milk Processing and milk products manufacturing dairy units for market development and brand promotion.

(ii) For export promotion of processed products produced in the state, 20% of the Freight on Board value of the product for dispatch by•ship/aircraft, a grant subject to a ceiling of Rs 40.00 lakh per annum, will be payable for 3 years.

(iii) To encourage milk processing units established in the state to export their product, 50% of the unit cost for sending a sample of the product to other countries, subject to a ceiling of Rs. 5.00 lakh per beneficiary will be permissible. This grant will be subject to the condition of one sample to one unit to one country .

For the purpose of grading and standardizing the value added milk products related to milk processing and milk products manufacturing dairy units, cattle feed and cattle nutritional products manufacturing units and micro, small and medium enterprises, against.the actual fee and testing charges paid for getting nationally/internationally acceptable quality/'environment' certification and accreditation such as ISO-14001, ISO 22000, HACCP and Sanitary/Phytosanitary certification etc, the state government will reimburse SO percent as grant, subject to a ceiling of Rs.S.0 lakh. Standardization incentive will be given on the basis of certification/registration during the policy period.

For registration of patents/designs by milk processing and milk products manufacturing dairy units, cattle feed and cattle nutritional products manufacturing units and value added milk products manufacturing units belonging to Micro, Small and Medium Enterprises (MSMEs), reimbursement of 75% of the fees paid to the organizations/institutions authorized by the milk processing industries, subject to a ceiling of Rs.5.00 lakh, will be paid on one-time basis. This incentive will be given on the basis of patent/design registration during the policy period.

Electricity Duty paid by new milk processing units within a period of 10 years will be reimbursed from the departmental budget after assessment of the permissible amount by the power/Electricity department. This reimbursement will be made only on purchase of power from the State Electricity Distribution Companies or Power Distribution Licensees.

The amount of stamp duty paid on the land purchased or the land taken on lease for the unit to be established under this policy will be reimbursed out of the departmental budget after assessment of the permissible amount by the stamp department.
In determining the eligibility of proposals under this policy, the principle of 'first come first serve' will be kept in mind in view of the area wise categorisation as mentioned in Para-3 above in the manner determined by the government. The 'first' projects will be those which have been approved for sanction of incentives as per the policy and subsequent Government orders. The incentive will be paid after the commencement of commercial operations of the unit.