Male Buffalo Calf Rearing in India – Project Cost at a Glance and Bank Incentives

To help you to understand the economics of industrial unit of  “Salvaging and rearing of male buffalo calves scheme”, I have prepared a summary of the project cost including essential items of investment to maximize the income from the sale of male buffalo calves with the latest information to my knowledge.

Note: The costs indicated below are just sample cost estimates.

Project Cost At a Glance

Model III: Industrial unit


Margin Money: As applicable @ 25 % of the project cost proposed.


Incentives (refinance) from NABARD

There are several financial incentives provided by the governments for setting up infrastructural facilities for milk production. The National Bank for Agricultural and Rural Development (NABARD) assists farmers with loans and refinancing facilities for dairy farming. The interest charged ranges from 12% to 13% depending on the amount of loan taken.

Loans are to be repaid in suitable installments usually within a period of 5-6 years. Loan from banks with refinance facility from NABARD is available for starting these units. The items of finance would include capital asset items such as the civil constructions viz. various calves sheds, servant quarters, feed godown & other building etc. have been proposed to be constructed on the farm. The various agricultural machinery like tractor along with trolley and other tractor drawn equipments, feeding and watering troughs, power chaff cutter etc are to be included.

For purchase of male buffalo calves, fodder cultivation & other recurring expenses the financing bank has to provide cash credit (CC) limit. Cost of land is not considered for loan. However, if land is purchased for setting up an industrial unit, its cost can be treated as party's margin up to 10% of the total cost of project.

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