Animal Husbandry, Dairying and Fisheries (Poultry) Department. G.O. (Ms.) No.106 Dated:

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1 ABSTRACT,, Animal Husbandry Scheme for Poultry Development Establishment of Poultry Clusters at Sankarankoil and Villupuam Areas at a total cost of Rs crores - Orders Issued , Animal Husbandry, Dairying and Fisheries (Poultry) Department G.O. (Ms.) No.106 Dated: ORDER: Read: 1. Budget Speech made by the Hon ble Finance Minister on the floor of the Tamil Nadu Legislative Assembly. 2. From the Director of Animal Husbandry and Veterinary Services Letter No.75224/PP2/2011 dated During the Budget Speech , it has been announced that while there have been conscious efforts to enhance milk and meat production in the State, this Government now also wishes to spread the success of poultry sector in the western districts of Tamil Nadu to other regions of the State. It is proposed to bring in a special package for encouraging Native Chicken rearing on a commercial scale throughout the State. We will also initiate steps to develop Poultry Clusters around the Sankarankoil area and Villupuram area by promoting broiler and layer units on the pattern of the Namakkal area. 2. Based on the announcement, the Government, of Tamil Nadu proposes to launch a Scheme for Poultry Development in Non-poultry backward regions of the State. 3. In the letter second read above the Director of Animal Husbandry and Veterinary Services has proposed detailed guidelines for the implementation of the above scheme. He has also furnished detailed project proposal for implementing the Scheme for development of Poultry Clusters in non-poultry backward regions at a cost of Rs crores.

2 4. The details of the project are envisaged as follows:- ABSTRACT OF EXPENDITURE TABLE: 1 COST FOR ESTABLISHING BROILER / LAYER UNITS IN 7 DISTRICTS Cost for shed and Equipments Cost for Training of beneficiaries Contingency Charges including Documentation, Fuel Expenditure etc Cost per unit (Rs in lakhs) Number of units /District Cost per district (Rs in lakhs) Total cost for 7 Districts ( Rs in lakhs) Lumpsum Lumpsum Total Cost TABLE 2: COST FOR ESTABLISHING NATIVE CHICKEN UNITS IN 16 DISTRICTS Cost for shed, Equipments, Chicks and Feed Incentives for beneficiaries Cost per unit (Rs in lakhs) Number of units / District Cost per district (Rs in lakhs) Total cost for 16 Districts (Rs. in lakhs) Total Rs (i) Cost for Training of beneficiaries (ii) Contingency Charges including Documentation, Fuel Expenditure etc Lumpsum Lumpsum GRAND TOTAL The Government, after careful examination of the proposal of the Director of Animal Husbandry and Veterinary Services have decided to accept

3 the proposal in principle for implementation, of the Scheme for development of poultry clusters in Non-poultry backward regions at Sankarankovil and Villupuram Areas at a total cost of Rs Crores as per the eligibility norms and prescribed guidelines annexed in this G.O. 6. The Director of Animal Husbandry and Veterinary Services is requested to send necessary proposal to Government for implementation of the scheme for development of poultry clusters in Non-poultry backward regions at Sankarankovil and Villupuram Areas ordered at para 5 above. (By order of the Governor) Gagandeep Singh Bedi Secretary to Government To The Commissioner of Animal Husbandry and Veterinary Services, Chennai -6. The Accountant General, Chennai -18 (By Name). The Pay and Accounts Officer, (South) Chennai -35. The Deputy Commissioner, Government of India, Ministry of Agriculture, Department of Animal Husbandry Dairying and Fisheries, Krishi Bhavan, New Delhi. The Hon ble Chief Minister s Office, Chennai - 9. The Personal Assistant to Minister (Finance),Chennai 9. The Personal Assistant to Minister (Animal Husbandry), Chennai 9. The Principle Secretary to Secretary to Government, The Animal Husbandry, Dairying and Fisheries Department, Chennai 9. The Finance (AH&F) BG I / BG-II Department, Chennai -9. SF/SC. //Forwarded by Order// Section Officer

4 ANNEXURE (Annexure to G.O.Ms.No. 106, Animal Husbandry Dairying and Fisheries(Poultry) Department, Dated: ) GUIDELINES FOR THE SCHEME FOR POULTRY DEVELOPMENT: INTRODUCTION: 1.0 The Government of Tamil Nadu have proposed to launch a Scheme for development of poultry clusters in the non poultry backward regions of the State. For easy reference, this Scheme will be called the Scheme for Poultry Development (SPD). 1.1 Present Poultry Scenario: According to Livestock Census 2007, there is lakh Backyard poultry, lakh Commercial poultry and a total of lakh of poultry population in the State. It is estimated that there is about 100 lakh native chicken population available in the State. Poultry rearing is now developed into a commercial activity in many places in the districts of Namakkal, Salem, Erode and Coimbatore. Though presently the layer and broiler industry are growing at a rate of 8-10% and 15% respectively annually in Tamil Nadu, the growth has been mainly restricted to commercial poultry. Rural backyard poultry with native chicken varieties, contributes nearly 3.35% to the State s total egg production. 70% of the poultry products and eggs are consumed in urban and semi urban areas. Private poultry producers are also not able to attend to the needs of major rural consumers. 1.2 Broiler farming Broiler farming holds a prominent place in development plans, for a variety of reasons: It requires a modest initial capital outlay and its returns are achieved much earlier as the birds are ready for market at 6 to 8 weeks;

5 , The farming and production techniques are simple and need less skill which means that even the uneducated or poorly educated rural population can run a poultry farming business successfully if the necessary facilities are made available at their door steps. It provides the unemployed or poor villager with scope for diversification, increases the revenue, and enhances the value of certain agro-industrial by-products (for example, cereal and bran) by transforming them into quality products like poultry meat; 1.3 Rearing Native Chicken has the following advantages. It requires a modest initial capital outlay and its returns are achieved much earlier; The farming and production techniques are simple and need less skill which means that even the uneducated or poorly educated rural population can run a poultry farming business successfully if the necessary facilities are made available at their door steps at a reasonable cost. A section of urban and peri-urban consumers still prefer eggs or meat from country (native) chickens and are willing to pay a premium price for these products; 1.4 Layer poultry farming: Though management and capital intensive, provides ample scope for a year round income generation activity as eggs are consumed throughout the year without any regional, seasonal or cultural taboos by a majority of population, unlike poultry meat whose consumption pattern is influenced by cultural and religious taboos. 2. IMPLEMENTATION OF THE SCHEME: 2.1 Broiler Farming through Integration: Broiler Chicken rearing can be undertaken through integration wherein, integrators supply day old chicks and feed required for the birds. The Integrators also ensure that the birds are marketed through their own

6 Channels. There are many Integrators who are involved in the enterprise of broiler farming. During a discussion with Integrators, they had also expressed that they will be willing to expand their area of operation to hitherto non-poultry areas since the traditional areas are facing huge shortage of labour. A broiler farm with strength of upto 5,000 birds can be profitably run using the family labour alone and thus negates the requirement of additional man power. However since most beneficiaries are first time poultry farmers, it is proposed to assist them with 1,000 birds farm or in multiples of 1,000 birds upto 5,000 birds depending on the capability of the beneficiary. 2.2 Native Chicken Rearing: Native chicken rearing can also be encouraged on a smaller scale wherein a flock size of about 250 birds can be profitably reared and marketed by the farmer himself. The beneficiary can be encouraged to have a tie up with Native Chicken Breeders / hatchery units for a regular supply of chicks at mutually agreed prices and the beneficiary himself can do the rearing and marketing since Native Chicken meat and eggs have a good market throughout the State. 2.3 Layer (Egg) Poultry: Rearing of layers has developed into a highly organised, fully automated capital intensive enterprise that requires considerable expertise. This development is due to the introduction of cage system of rearing, along with evolving of strains of superior production potentialities and intensive management. Presently, layer farming under intensive system of rearing is suggested under all in all out system of rearing wherein a full batch of day old chicks are reared upto 72 weeks of age and beyond after which a new batch replaces this batch. 3 Project Area 3.1 Parameters required for Poultry:

7 Broiler / Layer / Native chicken farming, to be developed into a profitable enterprise requires the following parameters. The area selected must have a very low relative humidity (less than 40%) as lack of sweat glands in poultry will lead to distress during periods of high ambient temperature resulting in mortality or reduced productivity. There must be a wind velocity of 5 to 10 kmph that takes away the heat generated by the birds within the sheds, which would otherwise cause heat stress and resultant mortality of birds. The location selected must be predominantly a rain fed area, where the cropping intensity is only one every year and agriculture operations are restricted to one crop every year. Though availability of a market within a distance that can be accessed 5-6 hours from the production point is desirable, since integrators take responsibility for marketing of broilers in case of broilers, farmers take care of marketing of Native Chicken and eggs of layer farms, which has a ready acceptance anywhere, this criteria need not be insisted upon at present. 3.2 Regions identified for Broiler / Layer Project: The Broiler/ layer project is proposed in Sankarankoil and Villupuram regions of the State based on the above criteria. The concept of region will mean- the area in and around Sankarankoil and Villupuram and will not be restricted to the respective districts namely Tirunelveli and Villupuram alone. Sankarankoil region shall include the areas in Tirunelveli, Thoothukudi and Virudhunagar Districts, which should be suitable for poultry farming as described in para 3.1 above. Likewise, Villupuram region shall include suitable areas in Villupuram, Cuddalore, Ariyalur and Perambalur Districts. 3.3 Districts identified for Native Chicken Poultry:

8 The development of Native Chicken will be taken up in the districts that are not covered by the commercial broiler / layer rearing. This is done to ensure that the Native Chicken farmer does not face a competition till a regular clientale is established for him and the Native Chicken farmer does not have an unfair competition with the broiler / layer farmer. Besides the districts mentioned in para 3.2, the poultry belt districts namely Namakkal, Salem, Erode, Tiruppur, Coimbatore and The Nilgiris where HADP Scheme is under implementation) are presently not considered for this activity. The Native chicken rearing will be encouraged in the Districts of Dindigul, Dharmapuri, Kancheepuram, Kanniakumari, Karur, Krishnagiri, Madurai, Nagapattinam, Pudukottai, Ramanathapuram, Sivagangai, Thanjavur, Tiruvarur, Tiruvallur, Tiruchirapalli and Vellore. 4. SUBSIDY & ELIGIBILTY NORMS: 4.1. Individual Entrepreneurs encouraged: The objective of the Scheme is to encourage broiler rearing / layer rearing/ Native chicken rearing on a commercial scale in hitherto non - traditional areas and hence involves investment in terms of housing, cost for day old chicks, feed cost etc. The Scheme will be implemented in such a way that the selected beneficiaries will be able to contribute for the initial cost of the project. Hence, such beneficiaries who will be able to contribute towards capital expenditure or those who are considered credit worthy as per the banking criteria will be selected as beneficiaries. 4.2 NABARD assistance through Banks: It is proposed to involve NABARD and commercial / Nationalised banks in the implementation of the Scheme. The Poultry Venture Capital Fund programme of the Government of India is operated by the Department of Animal Husbandry Dairying and Fisheries, Ministry of Agriculture, Government of India. Under the Scheme, Hybrid Layer Unit

9 (multiples of 1,000 bird units upto 5,000 birds), commercial broiler units upto 5,000 birds) etc., are supported. As per this Scheme, 25% cost of the project will be provided as Back Ended Subsidy by NABARD (33% for SC / ST beneficiaries). The individual / farmer/ entrepreneur has to raise the rest of the funds through his own sources or through bank loans.,. 4.3 State Government Subsidy: Under this Scheme for Poultry Development, the Government of Tamil Nadu will contribute 25% of the funds in addition to the NABARD assistance which will be used for construction of the poultry sheds, the design of which will be provided by TANUVAS. For calculation purposes, it is presumed that hybrid Broiler Units of the size of 3,000 birds will, on an average be taken up. For layer units under deep litter system of rearing, the maximum assistance for the layer farmer shall be restricted to the assistance provided to the broiler farm of a similar size. 4.4 ELIGIBILITY CRETERIA: The following are the eligibility criteria for availing the assistance under the Scheme: i. Farmers, individual entrepreneurs and SHGs are eligible. ii. One time assistance only: An individual is eligible for availing assistance only once for each component. However, if a beneficiary has already put up a shed with his own cost, he can also avail assistance under this Scheme for putting up a New Shed since farmers / beneficiaries, who already have an experience in poultry rearing are sought to be further encouraged to promote poultry development in Non-Poultry areas. In other words, the Scheme also endeavours to encourage capacity expansion of already existing farms and such farmers who intend to increase the size of their farm are also eligible to be assisted.

10 iii. Tie up with Integrator / Bank: The name of the Broiler / layer beneficiary/ Native Chicken Farm beneficiary should originally be recommended by an Integrator of repute and a Nationalised / Commercial bank / Co-operative bank who should be willing to fund the beneficiary. In case of the beneficiary coming forward to invest on his own, the letter of the Integrator together with a proof of his financial capabilities to fund the project should be produced. For a layer beneficiary, the letter of a nationalized / Commercialised/ Cooperative bank alone is sufficient since layer farming is not practiced at present through Integrators approach. iv. Space Required: The Broiler / Layer unit beneficiary must have an undisputed space of minimum one sq.ft per bird, in his own name or in the name of the family members. A written commitment must be preferred by the beneficiary that the shed shall not be utilized for any other purpose than rearing poultry till the bank loan period is completed and farm will be under hypothecation to the bank that sanctioned the loan. In cases of willful deviation in this regard, the amount allotted shall be recoverable. v. Rural Areas only: The poultry farm should be located in rural areas (i.e.,) areas within the Village Panchayats alone. The poultry farms should preferably be located away from the dwelling units. 5. PROCESS OF SELECTION OF THE BENEFICIARIES: Broiler Units: 5.1 The critical requirements for starting a poultry farm are Poultry Sheds, Day old poultry chicks, continuous supply of feed, Medicines and Marketing at the proper time. Integrators provide all the critical inputs except housing as the farmer is expected to provide for housing. Considering the cost of construction to be Rs.150 per Sq. ft. a sum of

11 Rs lakh, Rs.4.50 lakh and Rs.7.50 lakhs will be required to be raised by the farmer rearing 1000, 3,000 and 5,000 birds respectively. 5.2 Since the inputs like chicks, feed, medicines and vaccines are provided by the Integrators, the farmer need not invest on these recurring costs. The farmers contribution will be restricted to housing cost and equipments cost only. 5.3 Since the Integrators and Bankers absorb the risk, the process of identification of potential beneficiaries will be undertaken by the Integrators / Bankers themselves since they will be bound to select the genuinely interested beneficiaries. Layer Units 5.4 The critical requirements for starting a layer poultry farm are Poultry Sheds, day old chicks, continuous supply of feed, and medicines. Chicks are available in the open market which can be sourced easily by the farmer. A floor space of 1.80 sq. ft per bird is required for housing birds (under deep litter system of rearing). The cost for construction of sheds is approximately Rs.160 per sq.ft. The average cost for a 1,000, 3,000 and 5,000 bird layer farm will be approximately Rs. 5 lakhs, Rs. 14 lakhs and Rs.23 lakhs respectively as the cost for feed and equipments also need to be factored as loan component. 5.5 Since all the inputs have to be sourced by the farmer, the farmer needs to invest on the other critical inputs like feed, housing and medicines that are recurring costs. The amount required for housing can be availed as a bank loan from any Nationalized / Commercial bank along with recurring cost. 5.6 Since feed cost will be more, it is advisable to have a pulveriser so that all the feed raw materials can be sourced by the farmer from the

12 market and mixed as feed. A cost of Rs.0.20 lakhs is envisaged for this component. 5.7 Since the Bankers absorb the risk, fully, the process of identification of potential beneficiaries will be undertaken by the Bankers themselves for this Scheme too. Native Chicken rearing 5.8 The critical requirements for starting a Native poultry farm are Poultry Sheds, day old poultry chicks, continuous supply of feed, medicines and Marketing at the proper time. Integrators will provide the Native variety of chicks. Considering the cost of construction and cost for equipment per bird to be Rs.150 per Sq. ft., a sum of approximately Rs lakh will be required to be raised by the farmer for rearing 250 birds. 5.9 Since only chicks are provided by the integrators, the farmer needs to invest on the other critical inputs like feed, housing and medicines that are recurring costs. The amount required for housing can be availed as a bank loan from any Nationalized / Commercial bank / Co-operative bank along with recurring cost for one batch In case of Native chicken rearing, the Integrator will supply the day old chicks to the beneficiary. The requirement of feed will be about 4 kgs for 14 weeks. The feed is available at all places and the beneficiary shall procure the feed himself. Since there is a ready market for native chicken meat, marketing of the birds after weeks will be undertaken by the beneficiary himself Since the Bankers absorb a part of the risk, the process of identification of potential beneficiaries will be undertaken by the Bankers themselves for this Scheme too. 6. IMPLEMENTATION SCHEDULE:- 6. A Broiler / Layer Units 6.A.1. The Scheme will be implemented in the selected locations simultaneously. Around 250 beneficiaries will be selected from each

13 location by the Banker Integrator in case of Broiler/ Layer farms. The Director of Animal Husbandry and Veterinary Services can, however, inter-adjust the districtwise targets based on the response in various districts. 6.A.2. Every year about 800 new beneficiaries will be selected in the region earmarked (about 250 beneficiaries per District). The beneficiaries of the previous year will start earning a substantial income during the first year itself and hence will not be supported after one year. However hand holding support will be provided to these beneficiaries in terms of Veterinary services through the Animal Husbandry Department. 6.A.3 The Director of Animal Husbandry and Veterinary Services will allocate funds to the Regional Joint Directors of Animal Husbandry based on the number of beneficiaries in the District concerned. Funds will also be allocated for the administrative expenditure to be incurred for the implementation of the Scheme. 6.A.4 The Regional Joint Directors of Animal Husbandry will re-allot the amount to the concerned Assistant Directors of Animal Husbandry [ADAH], who will open a Nodal Account for the receipt of funds in a Nationalized Bank. 6.B Native Chicken Units 6.B.1. The Scheme will be implemented in all the 16 selected Districts simultaneously. Around 35 beneficiaries will be selected from each District and the Director of Animal Husbandry and Veterinary Services can inter-adjust the District-wise targets based on the demand from various districts within the overall allocation. 6.B.2 The identification of potential beneficiaries will be undertaken by the Banks since the risks of the commercial enterprise is mostly on the banks. 6.B.3 At least 35 beneficiaries will generally be selected in the District earmarked each year. The beneficiaries of the previous year will start

14 earning a substantial income during the first year itself and hence will not be supported after one year. Native Chicken farming can be undertaken in 3 batches of 14 weeks each in one year. Since the beneficiary has to rear the birds for upto 14 weeks, the interest of the beneficiary should not wane. In order to encourage the beneficiaries to continue the avocation, 50% of the cost of Chicks will be provided by the Government for the second batch and 30% cost of the chicks will be provided by the Government for the third batch. Considering the prevailing cost of day old native chicken of Rs.30 per chick, a lumpsum of Rs.3,250 for 250 chicks for the first batch and Rs.2,500 for the second batch, totaling Rs.5,750 will be provided as incentive to the beneficiary. The cost of chicks and the cost for feed along with the remaining 75% cost for construction of the sheds will be as bank loan. Further, hand holding support will be provided to these beneficiaries in terms of Veterinary services through the Animal Husbandry Department. 6.B.4 The Director of Animal Husbandry and Veterinary Services will allocate funds to the Regional Joint Directors of Animal Husbandry based on the number of beneficiaries in the District concerned. Funds will also be allocated for the administrative expenditure to be incurred for the implementation of the Scheme. 6.B.5 The Regional Joint Directors of Animal Husbandry will re-allot the amount to the concerned Assistant Directors of Animal Husbandry [ADAH], who will open a Nodal Account for the receipt of funds in a Nationalized Bank. 7. IMPLEMENTATION PROCEDURE 7.1 For Broiler Units: a. Identification of Integrator: The District Collector concerned will invite the Integrators who are willing to expand their business in the concerned region by means of

15 an Advertisement in leading dailies (both vernacular and English). A meeting of all the Integrators, bank representatives of the District, Officials from NABARD and the Regional Joint Director of Animal Husbandry will be conducted by the District Collector. The list of Integrators who are willing to establish commercial Broiler in the District, and the banks that are willing to be a part of the Scheme will be arrived at during the meeting. In order to ensure that the interest of the beneficiaries is protected, it is considered that the Integrators need to mandatorily agree to provide a Minimum Agreed Price (MAP) to the beneficiaries for rearing of the chicken going by the prevailing rates. This MAP shall be fixed by the District Collector based on the practical analysis of the prevailing market scenario. Any amount over and above this should be mutually arrived at by the Integrator and the beneficiary. b. I.E.C. Campaign: The Regional Joint Director of Animal Husbandry will take steps to propagate the Scheme among all the farmers / Entrepreneurs by undertaking extensive IEC campaign through the local media. This campaign will be conducted for a period of 15 days during which time, the salient features of the Scheme will be explained. c. Identification of Beneficiaries: The Integrator and the bankers will solicit applications from the interested individuals. The individuals who tie up with the Integrators and the bankers (or who get their own finances) will apply to the District Collector with a proof of the tie up in terms of (i) the letter of the Integrator, (ii) the provisional sanction order of the banker concerned or the proof of own finances. The District Collector, in consultation with the Regional Joint Director of Animal Husbandry and Assistant General Manager NABARD, will approve the Beneficiary s name and issue sanction letter.

16 d. A Tripartite Agreement should then be executed between (a) the farmer / individual, (b) Banker and (c) Integrator so that each other s interests are served by this Agreement. The Agreement shall mention the minimum number of batches that the Integrator must place with the beneficiaries (5 batches suggested), a Minimum of Rs.4 per kg of live weight per bird as growing charges, Integrators to route the sale proceeds to the beneficiary through the bank and the Insurance cost at prevailing rates for the building. In case of beneficiaries going ahead to develop the poultry without support of an Integrator, he is free to do so provided his project cost is approved by the bank concerned. e. Release of Subsidy: The Regional Joint Director on finalization of the selected beneficiaries and on receipt of the Tripartite Agreement, shall intimate the same to the Director of Animal Husbandry and Veterinary Services, who will release the subsidy portion of the State Government to the Regional Joint Director s account opened for the purpose. The Director of Animal Husbandry and Veterinary Services shall have monthly meetings with NABARD officials at the State level to facilitate timely release of subsidy under Poultry Venture Capital Fund to the banker as Back Ended Subsidy. f. Training of beneficiaries: The list of selected individuals will be forwarded to the training centre of TANUVAS which will then provide them training on commercial poultry rearing for 5 days. 7.2 Layer farms a. Tie up with Banks: The District Collector concerned will invite the farmers who are willing to involve themselves in layer farming during the farmer s Grievances day. A meeting of all the bank representatives of the

17 District, Officials from NABARD and the Regional Joint Director of Animal Husbandry will be conducted by the District Collector. The list of farmers who are willing to establish layer units in multiples of 1,000 (upto 5,000) in the District, and the banks that are willing to be a part of the Scheme will be arrived thereafter. b. IEC Campaign: The Regional Joint Director of Animal Husbandry will take steps to propagate the Scheme among all the farmers / Entrepreneurs by undertaking extensive IEC campaign through the local media. This campaign will be conducted for a period of 15 days during which, the salient features of the Scheme will be explained. c. Identification of Beneficiaries: The bankers will solicit applications from the interested individuals. The individuals who tie up with the Integrators(if any) and the bankers (or who get their own finances) will apply to the District Collector with a proof of the tie up in terms of the provisional sanction order of the banker concerned or the proof of own finances. The District Collector, in consultation with the Regional Joint Director of Animal Husbandry and Assistant General Manager NABARD, will approve the Beneficiary s name and issue sanction letter. d. Release of Subsidy: The Regional Joint Director on finalization of the selected beneficiaries shall intimate the same to the DAH & VS, who will release the subsidy portion of the State Government to the Regional Joint Director s account opened for the purpose. The Director of Animal Husbandry and Veterinary Services shall have monthly meetings with NABARD officials at the State level to facilitate timely release of subsidy under Poultry Venture Capital Fund to the banker as Back Ended Subsidy.

18 e. Training of Beneficiaries: The list of selected individuals will be forwarded to the training centre of TANUVAS which will then provide them training on commercial poultry rearing for 5 days. 7.3 Native Chicken Farms: For Native Chicken Farms, the above procedure will be followed except that application should be sponsored by the Bank concerned alone and it is preferred for a letter from the Integrator about the commitment of the supply of chicks though the Integrator s letter is not compulsory since the role of Integrator is only limited to only the supply of chicks in this case. 8. TRAINING FOR BENEFICIARIES 8.1 Since poultry rearing requires adoption of intense management procedures so as to ensure profits and considering the beneficiaries lack of prior experience in this avocation, it is important to provide basic training on best practices on feeding and management of poultry rearing. Training will also be provided for vaccination of birds. The training will be provided by TANUVAS at places near the beneficiaries village itself. 8.2 The beneficiaries will be provided 5 days training on commercial native poultry rearing and TANUVAS will issue certificates to that effect. After the training is completed the Banks will be given a formal clearance by the concerned Assistant Director of Animal Husbandry. 9. TIME PERIOD OF CONSTRUCTION 9.1 The basic plan for the semi-permanent housing structure will be provided by the Animal Husbandry department in consultation with TANUVAS. The poultry housing construction will be undertaken by the beneficiary himself. 9.2 The entire construction must be completed within 60 days (90 days for layer units to put up cages also). The Regional Joint Director will cause

19 an inspection of the site where the poultry farm is to be put up initially. After the inspection is completed, the Veterinary Assistant Surgeon (VAS) and the ADAH concerned will jointly inspect the shed and give a letter to the Integrator to supply the chicks. The subsidy portion of the State Government is provided as front ended so as to reduce the interest burden of the farmer. Only after this will the chicks be supplied to the farmer. The 25% subsidy to the bank will be released to the bank by the RJDAH after the construction of shed is completed. 10. Repayment of Bank Loan: 10.1 It is envisaged that for the Broiler/ Layer Units, the Integrators are also made responsible for repayment of the loan portion and this should preferably be incorporated in the Tripartite Agreement. This will encourage the bankers to come forward for extending loans for this avocation. The Integrators pay the beneficiaries the rearing charges based on their mutual agreement (subject to the minimum prescribed). If the Integrator pays the bank loan portion on behalf of the beneficiary, the bankers will have a greater confidence and easier facilitation of the loan is possible At Rs lakhs per Broiler farm (for an average of 3,000 birds), the State Government s contribution per farm is expected to be around Rs.1.24 lakhs (cost for shed construction). Likewise the State Government s subsidy contribution for a layer farm (of an average of 1,000 birds) will be upto Rs.1.19 lakh out of a total Budget cost of Rs.4.76 lakh approximately. The subsidy for a 250 native birds unit will be Rs.29,250 (out of a total project cost of Rs.1.17 lakh). In addition, as already explained earlier, an incentive to go for 2 nd and 3 rd batch of Native Chicks in a year of Rs.5,570 will be given to the beneficiaries of Native Chicken Units. Giving by the expected typical size of the Poultry units envisaged, the net subsidy requirement year is about

20 Rs crores. The Director of Animal Husbandry and Veterinary Services may, if required, adjust the allocation between Broiler and Native Chicken sections without changing the total subsidy amount A training cost of Rs.20 lakh is to be provided to Tamil Nadu Veterinary and Animal Sciences University and contingency charges of Rs.15/- lakhs for administrative expenses like IEC, documentation is also to be earmarked The Secretary to the Government, Animal Husbandry, Dairying and Fisheries Department may, in consultation with Director of Animal Husbandry and Veterinary Services, change any of the above guidelines based on the exigencies that will arise then and there. GAGANDEEP SINGH BEDI, SECRETARY TO GOVERNMENT / True copy / SECTION OFFICER