1. Capital Investment Grant

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.

2. Interest Subvention

• (a) Establishment of new milk processing and milk products manufacturing dairy units: For setting up a new 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.
• (b) Establishment of new cattle feed and cattle nutritional products manufacturing units: Reimbursement of 5% interest payable on loan for 5 years subject to a ceiling of Rs 7.50 crore.
• (c) Technological upgradation inside the dairy plant: For installation of SCADA System, new technology machinery, reimbursement of 5% for 5 years subject to a ceiling of Rs 2.50 crore.
• (d) New technologies outside the dairy plant: For traceability and quality control equipment like automatic milk collection units, reimbursement of 5% interest for 5 years subject to a ceiling of Rs 1.00 crore.
• (e) Installation of Cold Chain: For cold chain systems like refrigerated van, insulated van, road milk tanker, bulk milk cooler, ice cream trolley etc., reimbursement of 5% interest for 5 years subject to Rs 1.00 crore.
• (f) Expansion of milk processing units: In case of minimum 25% increase in capacity, reimbursement of 5% for 5 years subject to Rs 2.50 crore.
• (g) Expansion of cattle feed and nutritional product units: Reimbursement of 5% for 5 years subject to Rs 2.00 crore.
• (h) Value added milk products units: For micro and small enterprises like cheese, ice cream etc., reimbursement of 5% for 5 years subject to Rs 2.00 crore.

3. Provision for Market Development and Brand Promotion

• Export promotion of processed products: 20% of FOB value by ship/aircraft, ceiling of Rs 40.00 lakh per annum for 3 years.
• 50% of unit cost for sending product samples to other countries, ceiling Rs 5.00 lakh per beneficiary.

4. Provision for Standardization Incentive

Reimbursement of 50% as grant for ISO-14001, ISO 22000, HACCP, Sanitary/Phytosanitary certification etc., subject to Rs 5.00 lakh.

5. Provision for Patent/Design Registration

Reimbursement of 75% of fees for patent/design registration subject to Rs 5.00 lakh (one-time basis).

6. Electricity Duty

Electricity Duty paid by new milk processing units within 10 years will be reimbursed (only on power purchased from State Electricity Distribution Companies).

7. Stamp Duty

Stamp duty paid on the land purchased or leased for the unit under this policy will be reimbursed after assessment.