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Operational Guidelines

The Department of Animal Husbandry & Dairying, Government of India is implementing the scheme of National Livestock Mission since the financial year 2014-15. In view of the present need of the sector the NLM scheme has been revised and realigned from F/Y 2021-22. The revised scheme of National Livestock Mission (NLM) aims towards employment generation, entrepreneurship development, increase in per animal productivity and thus targeting increased production of meat, goat milk, egg and wool under the umbrella scheme Development Programme. The excess production will help in the export earnings after meeting the domestic demands. The concept of NLM Scheme is to develop the entrepreneur in order to create the forward and backward linkage for the produce available at the unorganized sector and to link with the organized sector.

The NLM will be implemented throughout India in accordance with guidelines described hereunder.

The NLM intends to achieve the following objectives

1. Employment generation through entrepreneurship development in small ruminant, poultry and piggery sector & Fodder sector

2. Increase of per animal productivity through breed improvement

3. Increase in production of meat, egg, goat milk, wool and fodder.

4. Increasing availability of fodder and feed to substantially reduce the demand – through strengthening the fodder seed supply chain and availability of certified fodder seeds

5. Encouraging establishment of fodder processing units to reduce the demand supply gap

6. Promoting risk management measures including livestock insurance for farmers

7. Promoting applied research in prioritized areas of poultry, sheep, goat, feed and fodder

8. Capacity building of state functionaries and livestock owners through strengthened extension machinery to provide quality extension service to farmers.

9. Promoting skill based training and dissemination of technologies for reducing cost of production, and improving production of livestock sector

The realigned National Livestock Mission will have following three Sub-Missions:

(a) Sub-mission on Breed Development of Livestock and Poultry

(b) Sub-mission on Feed and Fodder Development

(c) Sub Mission on Innovation and Extension

(a) Sub-mission on Breed Development of Livestock and Poultry

proposes to bring sharp focus on entrepreneurship development and breed improvement in poultry, sheep, goat and piggery by providing the incentivization to the Individual, FPOs, FCOs JLGs, SHGs, Section 8 companies for entrepreneurship development and also to the State Government for breed improvement infrastructure.

(b) Sub-mission on Feed and Fodder Development

This Sub-Mission aims towards strengthening of fodder seed chain to improve availability of certified fodder seed required for fodder production and encouraging entrepreneurs for establishment of fodder Block/Hay Bailing/Silage Making Units through incentivisation.

(c) Sub-Mission on Innovation and Extension

The sub-mission aims to incentivize the Institutes, Universities, Organizations carrying out research and development related to sheep, goat, pig and feed and fodder sector, extension activities, livestock insurance and innovation. Under this sub-mission, assistance will be provided to the central Agencies, ICAR Institutes and University farms for applied research required for development of the sector, extension services including promotional activities for animal husbandry and schemes, seminars, conferences, demonstration activities and other IEC activities for awareness generation. Assistance will also be provided for livestock insurance and innovations.

Jurisdiction of the scheme

The scheme will be implemented all over India from 2021-22.

Empowered Committee (EC)

Constitution of EC:

Empowered Committee will be established under the Chairmanship of the Secretary, Department of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry and Dairying, Government of India. The other members of the committee will be Financial Advisor, DAHD, Animal Husbandry commissioner, Joint Secretaries of DAHD and Principal Secretaries of Selected States representing 5 regions on a rotational basis (North, East, West, South and North-eastern states) Representatives of the line Ministries. The Member Secretary of the empowered committee will be Joint Secretary, National Livestock Mission who will also be the Mission Director of NLM.

Function of EC:

The Empowered Committee will be responsible for overall monitoring of the progress of the scheme, approval of the scheme guidelines, provide policy direction, and approve necessary changes if any (such as deletion, addition and modification of any component or activities) with regard to the scheme, without altering the total funding, allocation and funding pattern. The Committee will also have the power to update the cost norms of different activities as required from time to time due to variation of the price index of different commodities related to a particular activity. The EC may also delegate powers to other Committees as may be required. The EC will also have power to delegate responsibilities to the Project Approval Committee for approval of projects.

Project Approval Committee (PAC)

Constitution of PAC:

PAC will be established under the Chairmanship of Joint Secretary, National Livestock Mission to approve the projects including the project received from the State Level Executive Committee (SLEC). The committee will comprise of Director of the concerned State Government Department, Representative of the Financial Advisor, Officials of the Line Department, Joint Commissioner or Deputy Commissioner or Deputy Secretary of NLM Division. Joint Commissioner or Deputy Commissioner or Director will be the Member Secretary of the PAC. In a situation where a meeting of PAC is not possible, Chairman of PAC can sanction the project with the condition that the project will be approved in the next PAC.

Function of PAC:

The PAC will examine, verify the feasibility, viability of the project received from the SLEC appraised by the Project Appraisal and Monitoring Unit and recommend for release of grants. The PAC will also monitor the implementation of project(s) at the ground level. The PAC will also be empowered to suggest changes in guidelines which will be approved by the Empowered Committee.

State Level Executive Committee (SLEC)

Constitution of SLEC:

The State Level Executive Committee (SLEC) will be established under the Chairmanship of Additional Chief Secretary/Principal Secretary/ Secretary of State Animal Husbandry Department, of the respective State Governments. The convenor of the SLEC will be the Chief Executive Officer or Managing Director of the State Implementing Agency as the case may be. The other members of the Committee will be the Director or Commissioner of Animal Husbandry, Joint Secretary or Deputy Secretary of the Department, Additional Director, Deputy Director/District Animal Husbandry Officer of the concerned District whose proposals are to be considered and any technical officer in the relevant field.

Function of SLEC:

The State Implementing Agency of the State Animal Husbandry Department will invite proposals through Expression of Interest (EOI) from eligible beneficiaries/agencies including the Entrepreneurship proposal. The SLEC will examine the project proposals submitted by beneficiaries and State agencies, for approval and will confirm the availability of State Share and beneficiary contribution if any as per the specific scheme guidelines and will forward the same to NLM division of Department of Animal Husbandry and Dairying Ministry of Fisheries, Animal Husbandry and Dairying, Government of India for consideration and approval.

Mentoring Group:

A mentoring group will be established under the Chairmanship of Hon’ble Minister of Fisheries, Animal Husbandry and Dairying with the members from Government Sector, Retired Scientists/ professionals, experts from private sectors Livestock Farmers working in the field of Small Ruminants, Piggery and Feed and Fodder Sector. The mentor group will guide the Department for implementation of the scheme various innovations etc.

Expert Group

An expert Group will be set up under the Chairmanship of Animal Husbandry Commissioner (AHC) with the members from the Department, ICAR and the Relevant States to appraise the project under the Research and Innovation components of NLM Scheme. The Expert Group will examine the project submitted by the eligible institutes or organizations with regard to its feasibility, cost of the project, and technical aspect as proposed by the organization and economic benefit of the project. The Expert Group, after examination of the project, shall recommend the project for the Grants for the consideration of the Empowered Committee. The Expert Group shall also co-opt subject matter specialist in the group if need be.

Implementing Agency:

The National Livestock mission will be implemented through the State Implementing Agency established under the State Animal Husbandry Department. In this regard, the State Animal Husbandry Department will need to establish their State Implementing Agencies or identify the agency already established for implementation of the National Livestock Mission. The State Government shall notify the State Implementing Agency to the DAHD. The Central share wherever eligible will be channelized through the State Implementing Agency.

Function of the State Implementing Agency for implementation of NLM scheme.

The State Implementing Agencies of the Animal Husbandry Department or the State Animal Husbandry Department of the concerned State Government shall invite the names of entrepreneurs/ eligible entities through expression of interest.

● The applications submitted by the entrepreneurs/ eligible entities shall be scrutinized and the State Implementing Agency will recommend the application of the entrepreneurs/ eligible entities to avail balance financing for the project through scheduled banks or financial institutions like National Cooperative Development Corporation (NCDC) etc.

● Once the project funding for entrepreneurship components through financing for loan portion is committed then the same should be placed before the State Level Executive Committee (SLEC) for approval. After the approval of the projects by the SLEC, the projects will be sent to the Central Government through online portal developed for uploading applications under NLM.

● The implementing agency shall also send the proposals under the NLM other than the entrepreneurship project for seeking Central Share through online portal.

● The State Implementing Agency shall be responsible for monitoring the projects of the entrepreneurs and intimate the Department on their progress on half yearly basis. Utilisation certificate, physical and financial progress, on the other projects in respect of projects other than entrepreneurs to be furnished to the Department on half yearly basis.

Eligibility Criteria for the Entrepreneurs/ Eligible Entities to avail benefit under NLM

The Entrepreneurs/ Eligible Entities shall be considered Eligible for availing benefit under the entrepreneurship programme if fulfils either of the following criteria:

● Entrepreneurs/ Eligible Entities either have obtained training or have trained experts or have sufficient experience in the relevant field in managing and running the project or have technical experts with sufficient experience in the relevant field of managing and running the project.

● The Entrepreneurs/ Eligible Entities have got the sanction loan for project by the bank or financial institutions furnished bank guarantee from scheduled bank along with appraisal of project for its validity by bank where it is holding the account.

● The Entrepreneurs/ Eligible Entities should have own land or lease land where the project will be established.

● The Entrepreneurs/ Eligible Entities have all the relevant documents for KYC

Monitoring of the Scheme:

The programme will be monitored through MIS system for maintaining data and online monitoring. The assets will be monitored through GI tagging.

Implementation of the scheme will be reviewed at National Review Meeting, Regional Review Meeting and State Review Meeting. Further, each State will need to submit the physical and financial progress of the schemes in every quarter as per the outcome-output framework enclosed at Appendix I.

The DAHD will set up Project Management Agency (PMA) for assisting implementation of the scheme. The PMA shall be responsible for the following work:

● to assist the State Implementing Agency to scout the beneficiary proposal.
● to handhold the beneficiary to facilitate them to submit the proposal
● to undertake outreach of the scheme
● to maintain liaison with the respective banks for monitoring the fund flow to the beneficiary
● to develop MIS system and
● Any other work assigned by the DAHD for implementation of the scheme.

Transparency in scheme monitoring:

For better monitoring of the scheme at the grass root level, the State shall ensure implementation of monitoring system involving the Panchyeti raj institutions like the members of Gram Panchyet at the village level and Panchayat Samiti at the Block level and the District Pachayet at the district level. Also the Pashu Sakhis under the National Rural Livelihood Hood Mission should be utilised for feedback of the projects under implementation and functions in the field. For breed improvement, identifying resources, the Pashu Sakhees may also be involved.

Physical Progress report:

The State Implementing Agency will submit the Physical Progress Report for the projects for which the Central Share has been released on quarterly basis as per the Format prescribed at Appendix 1.

Financial Progress report:

The Financial Progress report need to be submitted as per the prescribed format of GFR within the time limit specified by GFR.

Project Approval of entrepreneurship programmes:

● The Entrepreneurs/ Eligible Entities shall submit the application through the NLM Portal to the State Implementing agency in response to Expression of Interest issued by the State Implementing Agency.

● The applications submitted by the Entrepreneurs/ Eligible Entities will be scrutinised by the State Implementing Agency and will be recommended for sanction of loan by the scheduled Bank or financial institutions like NCDC etc..

● After the recommendation of the project, the same will be considered by the bank or financial institutions for financing.

● Once the Entrepreneurs/ Eligible Entities obtains the bank or financial institution sanction of the project, the State Implementing Agency shall place the same in the State Level Executive Committee (SLEC) for recommending the application to the Central Government. After approval of SLEC the SIA will mark the application to the Central Government through the Portal to DAHD along with uploading the sanction for the loan component.

● The DAHD shall approve the project through the Project Approval Committee and fund the subsidy amount for the approved projects through Small Industries Development Bank of India (SIDBI) to the lending Bank or financial institutions as the case may be to release the subsidy to Beneficiaries

Approval of the projects submitted by Central Agencies/ University farms etc:

● The concerned Central Agencies/ University farms will submit the proposal to the NLM division through their parent organization/ Department. The parent organization/ Department should approve and recommend the project before forwarding to the NLM Division seeking assistance.

● On receipt of such applications, Project Approval Committee (PAC) established under the Chairmanship of the Joint Secretary, NLM will approve the project depending on the feasibility and viability of the project.

● The concerned Central Agencies/ University farms need to inform the physical and financial progress of the schemes to NLM division in every quarter.

Appraisal of the projects under innovation and research & development

The projects under Innovation and Research and Development which shall be submitted by the concerned Agency / Universities/ ICAR and other credible organization shall be evaluated and appraised by the Expert Group and recommend the same for consideration for funding by the Empowered Committee.

Funding and Fund flow of the scheme

The NLM scheme is consisting of both Centrally Sponsored components and Central sector components. Funding patterns has been explained against each component. However, apart from the funding under the specific components, the Department will also provide funding to the State Implementing Agency towards administrative cost for inviting proposals from the beneficiaries, awareness creation and handholding of beneficiaries to facilitate them to get bank loan etc.

Fund Flow for the Entrepreneurship programmes (Central sector Component):

Fund Channelizing Agency:

All the subsidy amount will be channelized through the Small Industries Development Bank of India(SIDBI). The Department of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry and Dairying shall sign and Memorandum of Understanding(MoU) with SIDBI regarding the managing of Subsidy, transfer of subsidy to the lending bank and financial institutions. The Department of Animal Husbandry and Dairying may provide administrative cost to SIDBI for working as fund channelizing agency for the entrepreneurship programme. The SIDBI shall also be liable for submitting all information and utilization of funds transferred to them. The Department will decide the modalities for fund channelizing work with SIDBI

Fund flow mechanism for the entrepreneurship programme:

In respect of the entrepreneurship programme, the subsidy will be provided by SIDBI to the lending scheduled bank or Financial Institutions like NCDC etc. to the subsidy account of beneficiaries. The SIDBI on receipt of the subsidy component, shall release the first instalment of subsidy to the appropriate account of Entrepreneurs/ Eligible Entities after the release of first instalment of loan. The SIDBI needs to open dedicated account for subsidy and shall intimate the DAHD for mapping in PFMS System. The manner of subsidy release has been mentioned against each entrepreneurship component.

In case of the self-financing project, the first instalment of back ended subsidy will be provided by SIDBI to the lending scheduled bank where the beneficiary has account. Such self-financed projects, prior to its sanction, would also be appraised by the Bank where the Entrepreneurs/ Eligible Entities has the account. The first instalment of subsidy will be released only when the beneficiary has made expenditure of 25% cost for the project towards infrastructure and has been verified by the State Implementing Agency. Remaining amount of subsidy will be provided after completion of the project and verified by State Implementing Agency.

The beneficiaries interested in taking benefit under the entrepreneurship project in self-financing mode need to provide Bank Guarantee from the scheduled bank for the remaining cost of the project beyond the capital subsidy sought for support. This Bank Guarantee shall be valid for three years and to be drawn in favour of Department of Animal Husbandry and Dairying, Ministry of Fisheries, Animal Husbandry and Dairying. The original Bank Guarantee is to be kept in the safe custody of the State Implementing Agency. Also a copy of the Bank Guarantee and a declaration form need to be uploaded in the online portal at the submission of the application or to be attached with the application. The Format of the Bank Guarantee and declaration has been annexed with the guidelines.

Fund Flow for the Centrally Sponsored Components:

The funds for Centrally Sponsored Components of the NLM Scheme under the submissions will be released to the State Government’s RBI Account. Thereafter, the State Government need to transfer the fund to the Account of the State Nodal Agency / State Implementing Agency within 21 days and the State Share to be released within 40 days. Detailed procedure for handling of fund for CSS Scheme may be followed as per Department of Expenditure, Ministry of Finance Guidelines issued time to time in this regards. The State Nodal Agency / State Implementing Agency needs to open a dedicated bank account to receive funds under NLM Scheme and mapped with PFMS system.

Fund Flow for Other Central Sector Components for Central or State Government Agencies:

The fund flow for assistance under the NLM Scheme to be provided to the Central Government Agencies or State Government Agencies or Start Ups etc. shall follow the norms prescribed by the Department of Expenditure and General Financial Rules.

Mode of application for entrepreneurship project:

The application for entrepreneurship project and also the Central Sector projects will be accepted through online portal to be developed by the DAHD through Small Industries Development Banks of India (SIDBI). However, till the online portal becomes fully functional the application for taking benefit under the scheme may also be submitted manually to the State Implementing Agency as per the format annexed at Annexure V.

Submission of projects under Central Sector fodder seed multiplication sub-components:

The Central Government will incentivise for all categories of fodder seed production by ICAR, National Seed Corporation (NSC), Indian Farmers Fertilizer Cooperative Limited (IFFCO), Krishak Bharati Cooperative ( KRIBHCO), National Agricultural Cooperative Marketing Federation of India (NAFED) and other Central Agencies as well as State Agriculture Universities (SAU), State Government seed production corporations, public and private organizations, dairy cooperatives and milk federations, National Dairy Development Board (NDDB) and other organizations with good credibility.

The applications in respect of the State Agencies/ State Governments/ Institutions in the States and other credible agencies other than the Central Agencies shall submit their application through State Implementing Agencies like State Livestock Development Board or agencies identified by the State Government for National Livestock Mission.

However, in respect of the applications for Dairy Cooperatives and Milk Federations, the applications shall be submitted through NDDB. The NDDB, after evaluating those applications shall submit the same to the Department of Animal Husbandry and Dairying for funding. The assistance for fodder seed production by the Dairy Cooperatives and Milk Federation will be placed to the NDDB for further release to the Dairy Cooperatives and Milk Federations.

Ranking of the States for performance:

It has been decided to rank the States based on the performance in implementing the programmes under the National Livestock Mission. The parameters for the performance will be as under:

a) Number of units established under entrepreneurship programme.
b) No. of jobs created through such entrepreneurship development.
c) Quantity of fodder seed produced and improvement of fodder production.
d) Number of farmers benefitted.
e) Number of Livestock Insured under insurance programme.
f) Number of innovative projects promoted and actually implemented.
g) Creation of awareness amongst the farmers and youth for the scheme.
h) Timely utilization of funds released by the Department as Central Share.
i) Project implementation time.
j) Timely release of State share.
k) Increase in production of egg, meat and wool in the state.
l) Increase in availability of good germplasm through entrepreneurship programme.

Force Majeure

Extraordinary events or circumstances beyond human control such as events described as an act of God (like a natural calamity) or events such as a war, strike, public health emergency, riots, crimes (but not including negligence or wrong-doing, predictable/ seasonal rain and any other events specifically excluded). In such case the Department will examine the fate of the subsidy or incentivized amount provided to the beneficiaries or institutions as per the provision of law.


In case of change in control of the selected Applicant due to change in equity ownership or change in promoter entities, DAHD should be informed immediately.

To obviate any malpractices in the financial matters where disbursements are made to beneficiaries by the Government, it has been decided to provide a deterrent against corrupt practices for promotion of transparency and equity. Therefore, keeping in view the sensitivities involved in the process and taking cue from the instructions of the Central Vigilance Commission regarding adoption of an Integrity Pact in the matter of procurement, it has been decided to obtain undertaking(s) from Applicants under the Scheme.

Two formats of undertakings are enclosed as Annexure VIII and IX. These undertakings are to be furnished by Applicants, duly signed by himself or Authorized Signatory of the FPOs /FCOs/ JLGs / SHGs/ Section 8 companies depicting the designation along with authorization to do so.

The undertaking in Annexure VIII for confirming the compliance of integrity will be provided by Applicants after the submission of claims for disbursement of Incentive and in any case before release of funds. The release of Incentives shall be withheld until the above-mentioned undertaking is provided.

These guidelines shall be amended/ modified at any time during continuance of the Scheme and such amendment/ modifications shall be binding to all the Applicants, including the Selected Applicants, during the tenure of the Scheme.

All applicants need to sign the surety bond for operation of the project as per Annexure X attached to this Guidelines.  

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01 Implementation guidelines of NLM scheme (English version) View