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National Livestock Mission (NLM) - Full Information

Complete information about the 50% subsidy available for poultry farming, goat-sheep rearing, piggery, and fodder production under the National Livestock Mission (NLM).

National Livestock Mission (NLM): Full Information

The National Livestock Mission (NLM) is a very important scheme implemented by the Department of Animal Husbandry and Dairying under the Central Government. The main objective of this scheme is to transform the unorganized livestock sector into an organized one, create employment, promote rural entrepreneurship, improve animal breeds, and increase the production of meat, milk, eggs, wool, and fodder.

The biggest benefit of this scheme is that entrepreneurs are provided with a 50% Capital Subsidy to set up livestock infrastructure.

The main three sub-missions of this scheme are as follows:

1. Sub-Mission on Breed Development

Financial assistance is provided to private entrepreneurs for setting up breeding farms and to state governments for improving the genetics of livestock.

  • Rural Poultry Entrepreneurship:

    • Capacity: Minimum 1000 parent layers.
    • Subsidy: 50% capital subsidy (up to a maximum of ₹25 lakh).
    • What’s included: Construction of hatchery/sheds, equipment (incubator, brooder), and purchase of ‘Low Input Technology’ (LIT) birds.

  • Sheep & Goat Entrepreneurship:

    • Capacity: Minimum 500 females and 25 males.
    • Subsidy: 50% capital subsidy (up to a maximum of ₹50 lakh).
    • What’s included: Construction of sheds for animals, high-quality breed livestock, equipment (e.g., chaff cutter), and fodder cultivation on up to 5 acres.

  • Piggery Entrepreneurship:

    • Capacity: Minimum 100 sows and 10 boars.
    • Subsidy: 50% capital subsidy (up to a maximum of ₹30 lakh).
    • What’s included: Construction of sheds/farrowing pens for pigs, piglets for breeding, and equipment.

  • Government Breed Improvement Initiatives:

    • The Central and State Governments (60:40) provide funds for establishing regional/state semen banks, increasing artificial insemination (AI), and importing high-quality foreign livestock.

2. Sub-Mission on Feed and Fodder Development

This sub-mission works to address the shortage of animal fodder and promote fodder processing.

  • Assistance for Fodder Seed Production:

    • Subsidy: 100% incentive subsidy for producing high-quality seeds.
    • Rates: Up to ₹250/kg for breeder seed, ₹150/kg for foundation seed, and ₹100/kg for certified seed.

  • Feed & Fodder Entrepreneurship:

    • Objective: To promote value-addition projects such as Silage making, Fodder Blocks, and Total Mixed Ration (TMR).
    • Subsidy: 50% capital subsidy (up to a maximum of ₹50 lakh).
    • What’s included: Machinery (baler, harvester, weighing scales) and infrastructure (sheds and godowns).

3. Innovation and Extension

This sub-mission focuses on farmer education, risk management, and technical advancement.

  • Research and Innovation: 100% central funding for ICAR, universities, and start-ups to solve problems in the livestock and fodder sector.
  • Extension Programs: Funding for organizing farmer training, seminars, and awareness campaigns (e.g., up to ₹1 lakh at block level, ₹2 lakh at district level, and ₹3 lakh at state level).
  • Livestock Insurance: Subsidized premium insurance to prevent farmers’ losses in case of animal death. A family gets a subsidy for a maximum of 5 cattle units. The premium amount is shared between the center, state, and beneficiary.

Eligibility & Financial Framework

Who is eligible for this subsidy?

  • Individuals
  • Self-Help Groups (SHGs)
  • Farmer Producer Organizations (FPOs)
  • Farmer Cooperative Organizations (FCOs)
  • Joint Liability Groups (JLGs)
  • Section 8 Companies

Essential Conditions: The applicant must have training or experience in the relevant field. They must own or have land on lease and have a bank loan approved (or have a ‘bank guarantee’ if investing personal funds).

How is the subsidy received? (Fund Flow)

This subsidy is not provided directly in hand (it is a back-ended subsidy) and is managed through SIDBI. This subsidy cannot be used to purchase land, personal vehicles, or for working capital.

  • Installment 1: Only when the bank releases the first installment of your loan, SIDBI deposits the first installment of the subsidy (50% of the total subsidy) into the lending bank. (If executing the project with personal funds, this installment is received after spending 25% of the cost).
  • Installment 2: The remaining subsidy is provided only after the project is fully established and the State Implementing Agency (SIA) performs a physical on-site verification.

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