Establishment of Entrepreneur for Breed Development in Small Ruminant Sector (Sheep and Goat Farming)

What is the small-ruminant entrepreneurship scheme?

The "Establishment of Entrepreneur for Breed Development in Small Ruminant Sector (Sheep and Goat Farming)" is an activity under the National Livestock Mission (NLM), run by the Department of Animal Husbandry and Dairying in the Ministry of Fisheries, Animal Husbandry and Dairying. It sits within the NLM's Sub-Mission on Breed Development of Livestock and Poultry, which promotes entrepreneurship and breed improvement in poultry, sheep, goat and piggery.

According to the Department of Animal Husbandry and Dairying, the activity offers a 50% capital subsidy up to a maximum of Rs 50 lakh to set up a scientifically managed sheep or goat breeding unit. The standard unit is around 500 female and 25 male animals, together with sheds, equipment, feed and other infrastructure. The subsidy is delivered on a bank-financed project, the promoter brings a bankable Detailed Project Report, the bank sanctions a loan, and the government subsidy is released against that loan in two instalments.

The aim is to build a domestic supply of quality breeding stock, improve the productivity of sheep and goat flocks, and create rural livelihoods around small-ruminant farming, which is a major source of income for landless and marginal households.

Who is eligible for the small-ruminant scheme?

You can apply if you are:

• An individual entrepreneur.
• A Farmer Producer Organisation (FPO) or Farmer Cooperative Organisation (FCO).
• A Self Help Group (SHG) or Joint Liability Group (JLG).
• A Section 8 company (not-for-profit company).

The applicant must be able to put together a bankable project and secure a financing bank, because the subsidy is credited to the loan account rather than paid directly to the applicant.

You cannot apply: or the proposal will not qualify — if:

• You are looking for a direct cash grant to keep a few animals at home. This is an enterprise subsidy, not a household benefit.
• You have no bank finance behind the project. Without bank appraisal and a sanctioned loan, the capital subsidy has no account to flow into.
• The project does not meet the NLM's unit and infrastructure norms for a breeding unit.

State governments participate for supporting infrastructure but the beneficiary subsidy is for the entrepreneur categories listed above.

What documents are required?

How to apply for the small-ruminant scheme

1. Register on the NLM portal. Go to nlm.udyamimitra.in and create an applicant account for the entrepreneurship (individual or entity) route.
2. Prepare your Detailed Project Report. Use the model DPR and operational guidelines on the portal to build a bankable project for a sheep or goat breeding unit of the required size.
3. Fill and submit the online application. Enter your details, upload the DPR, land documents, identity proof and other required formats, and submit.
4. Bank appraisal. The application is routed to your chosen financing bank, which appraises the project and, if satisfied, sanctions a loan.
5. Approval and first instalment. After State Implementing Agency and DAHD clearance, the first instalment of the capital subsidy is released through the bank once the loan is disbursed.
6. Set up and claim the second instalment. Complete the breeding unit; after the State verifies it, the second instalment of subsidy is released.

How the money and timelines work

The subsidy caps at Rs 50 lakh (50% of eligible project cost). Because it is released in two instalments and tied to bank finance and physical verification, the project has to actually be built before the full subsidy is drawn. The Department has, for example, set deadlines for beneficiaries who received a first instalment in earlier years to complete their projects and submit documents in order to receive the second instalment. A reminder that this is a milestone-based enterprise subsidy, not an upfront grant.

Where to get help

• NLM portal and helpdesk: nlm.udyamimitra.in
• Department of Animal Husbandry and Dairying: dahd.gov.in

The NLM portal carries the current operational guidelines, model DPRs and application formats, and is the authoritative source for unit costs and the latest amendments. Verify the exact figures for your project category there before applying, as NLM guidelines are periodically revised.