Establishment of Entrepreneur for Breed Development in Small Ruminant Sector (Sheep and Goat Farming)
Up to ₹50 lakh capital subsidy · sheep & goat breeding farms · India
Under the National Livestock Mission, this scheme provides a capital subsidy of up to ₹50 lakh to entrepreneurs and organizations that set up sheep or goat breeding units with at least 500 females and 25 males. It aims to professionalise the small ruminant sector by supporting integrated breeding operations that produce milk, meat, and fine wool. Apply online at nlm.udyamimitra.in; proposals are reviewed by State Implementing Agencies and funded through banks or financial institutions.
About This Scheme
Under the National Livestock Mission, this scheme provides a capital subsidy of up to ₹50 lakh to entrepreneurs and organizations that set up sheep or goat breeding units with at least 500 females and 25 males. It aims to professionalise the small ruminant sector by supporting integrated breeding operations that produce milk, meat, and fine wool. Apply online at nlm.udyamimitra.in; proposals are reviewed by State Implementing Agencies and funded through banks or financial institutions.
Full official description
Launched in the Financial Year 2014-15, the scheme "National Livestock Mission" by the Department of Animal Husbandry & Dairying, Ministry of Fisheries, Animal Husbandry and Dairying, aims towards employment generation, entrepreneurship development, increase in per animal productivity and thus targeting increased production of meat, goat milk, egg and wool. The excess production will help in the export earnings after meeting the domestic demands. The concept of the NLM Scheme is to develop the entrepreneur in order to create the forward and backward linkage for the produce available in the unorganized sector and to link with the organized sector.
"Establishment of Entrepreneur for Breed Development in Small Ruminant Sector (Sheep and Goat Farming)" is a component of the "Sub-mission on Breed Development of Livestock and Poultry" scheme of the National Livestock Mission. The objectives of this component are:
- To develop entrepreneurs in the small ruminant sector.
- To develop a sustainable business model on sheep-goat.
- To incentivize individual entrepreneurs, FPOs, FCOs, SHGs, JLGs, and Section 8 companies for the development of an integrated rural sheep-goat production system.
- Conversion of the small ruminant sector from unorganised sector to organised sector through promotion of entrepreneurship & investment and creation of forward & backward linkages.
- Spreading awareness about scientific rearing practices, nutrition, disease prevention etc.
- Promotion of stall feeding model of sheep and goat rearing.
The Entrepreneurs / Eligible Entities can establish sheep and goat breeding unit with a minimum of 500 females and 25 males. The sheep and goat unit to be established with the High Genetic Variety used for producing Goat milk, meat and fine wool quality. The breed of sheep and goat can be selected from the list provided with this guideline or in consultation with the State Government.
Benefits
- Capital subsidy of up to ₹50 lakh (released in two equal installments of ₹25 lakh each)
- First installment released after bank provides initial loan and State Implementing Agency (SIA) confirmation
- Second installment released after project completion and SIA certification
- Subsidy managed through SIDBI to the lending bank or financial institution
- Self-financing projects require a 3-year bank guarantee covering cost beyond the subsidy amount
💡 Why Startups Should Care
Small ruminant farming (sheep and goat) has lower capital and space requirements than cattle, making this ₹50 lakh subsidy proportionally more impactful for breeding entrepreneurs entering this segment.
Who Can Apply (Eligibility)
- Open to: Individual entrepreneurs, Farmer Producer Organizations (FPOs), Farmer Cooperatives (FCOs), Self-Help Groups (SHGs), Joint Liability Groups (JLGs), and Section 8 Companies
- Must establish a breeding unit with a minimum of 500 female and 25 male sheep or goats
- Must select breeds from the approved government list or in consultation with the State Government
- Project must be financially appraised by a scheduled bank or financial institution
How to Apply
- Visit the National Livestock Mission portal (nlm.udyamimitra.in) and click "Apply Here".
- Prepare a Detailed Project Report with cost, financing, and income projections.
- Attach land documents and photographs of the proposed farm site.
- Submit through the portal — first installment released via SIDBI to your bank.
- Second installment follows after project milestone verification.
Frequently Asked Questions
What is the objective of this scheme?
The primary objective is to develop entrepreneurs in the small ruminant sector, create sustainable business models for sheep and goat farming, and promote the transition from an unorganized to an organized sector through entrepreneurship and investment.
Who are the eligible beneficiaries under this scheme?
Eligible beneficiaries include Individuals, Farmer Producer Organizations (FPOs), Farmer Cooperatives (FCOs), Self Help Groups (SHGs), Joint Liability Groups (JLGs), and Section 8 companies.
What is the financial assistance provided under this scheme?
The scheme provides up to 50% back-ended subsidy for the capital cost of the project, with a maximum subsidy of [?] 50 lakh per unit. Subsidy is provided in two equal instalments.
What are the essential documents required to apply for the scheme?
Essential documents include the application form, project proposal, identity proof, address proof, entity registration documents (if applicable), bank account details, loan sanction letter (if applicable), bank guarantee (for self-financing projects), declaration form, technical specifications, proof of expenditure, and land ownership/lease documents.
How is the subsidy disbursed?
Subsidy is disbursed in two instalments: First Instalment: Released upfront to the scheduled bank or financial institution after confirmation of the first instalment of the loan by the State Implementing Agency. Second Instalment: Released after completion of the project and its verification by the State Implementing Agency.
Can urban residents apply for this scheme?
While the scheme primarily focuses on rural development, urban residents may apply if their projects align with the rural development objectives of the scheme. It is advisable to consult with the State Implementing Agency for specific eligibility criteria.
What is the follow-up process after the project is completed?
The State Implementing Agency will follow up on the project for a period of two years after completion to monitor its operation and sustainability.
Are there any restrictions on the use of the subsidy?
Yes, the subsidy cannot be used for working capital, personal vehicles, purchase of land, or the cost of rent and lease of land.
What support is provided for technical aspects of sheep and goat farming?
The scheme includes spreading awareness about scientific rearing practices, nutrition, disease prevention, and promoting stall feeding models for sheep and goat rearing.
Who should I contact for more information about the scheme?
For more information, contact the State Implementing Agency or the Department of Animal Husbandry and Dairying (DAHD), Ministry of Fisheries, Animal Husbandry, and Dairying (MoFAHD), Government of India.
Ready to apply?
Visit the official government portal to apply for this scheme.
Apply on myScheme.gov.inDocuments Required
- Detailed Project Report (DPR) with cost, financing, and income projections
- Land document (ownership / lease deed / rent agreement)
- Photographs of the proposed site