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Entrepreneurship Development and Employment Generation (EDEG) Scheme

Entrepreneurship Development and Employment Generation

Entrepreneurship Development and Employment Generation (EDEG) Scheme

The Entrepreneurship Development and Employment Generation (EDEG) Scheme is formulated under the Sub-mission of National Livestock Mission (NLM). The National Livestock Mission is designated to cover all the activities required to ensure quantitative and qualitative improvement in livestock production and capacity building of all stake holders. Under this scheme, the Government is providing financial assistance to eligible entrepreneurs.  In this article, we will look at the Entrepreneurship Development and Employment Generation (EDEG) in detail.

National Livestock Mission

The national livestock mission is formulated with the objective of sustainable development of the livestock sector, focusing on improving the availability of quality feed and fodder. The NLM has been formulated by subsuming and modifying seven centrally sponsored and seven Central Sector Schemes of Government of India.

Schemes Included under the National Livestock Mission

The following schemes are included under the national livestock mission:

Central Fodder Development Organisations

  • Central Sheep Breeding Farm
  • Central Poultry Development Organisations
  • Integrated Development of Small Ruminants and Rabbits
  • Piggery Development
  • Poultry Venture Capital Fund
  • Salvaging and rearing of male buffalo calves

Centrally Sponsored Scheme

  • Centrally Sponsored Fodder and Feed Development Scheme
  • Conservation of Threatened Breeds of Livestock
  • Poultry Development
  • The utilisation of Fallen Animals
  • Livestock Insurance
  • Establishment /modernisation of Rural Slaughterhouses, including mobile slaughter Plants
  • Livestock extension and delivery services

Sub-Mission of National Livestock Mission

The National Livestock Mission is organised into the following four Sub-Missions:

Sub-Mission on Livestock Development

The mission on Livestock Development concerns the overall development of livestock species including poultry, other than Buffalo and cattle with a holistic approach.

Sub-Mission on Pig Development in North-Eastern Region

This mission will strive to forge synergies of research and development organisations through appropriate interventions for holistic development of pigs in the northeastern regions including health cover genetic improvement,  and post-harvest operations.

Sub-Mission on Feed and Fodder Development

This mission especially focuses on increasing both the production and productivity of fodder and feed through the adoption of improved and appropriate technologies best suited to the specific agro-climatic region in both arable and non-arable areas.

SubMission on Skill Development, Technology Transfer and Extension

This mission will provide a platform to develop, adopt the technologies including frontline field demonstrations in collaboration with the farmers, researchers and extension workers wherever it is not possible to achieve this through existing arrangements.

Entrepreneurship Development and Employment Generation (EDEG)

The EDEG includes all credit cum subsidy linked activities earlier implemented through NABARD, viz., Poultry Venture Capital Fund (PVCF), Pig Development and Integrated Development of Small Ruminants and Rabbits (IDSRR).


The objective of the Entrepreneurship Development and Employment Generation (EDEG) is given below:

Poultry Venture Capital Fund (PVCF-EDEG)

  • To encourage entrepreneurship in various poultry activities and give capacity building for employment opportunities
  • To improve the production of poultry products and the productivity of processing units through technology up-gradation and also encourage the introduction of innovative technology.
  • To encourage nurture of other poultry species like turkeys, ducks, and quails etc. which have good potential.
  • Integrated Development of Small Ruminants and Rabbits (IDSRREDEG)
  • Development of Sheep for Wool and Mutton
  • Development of Goat for Meat and Milk
  • Assistance for the Establishment of Goat Farms in Government Sector, NGO and Private
  • Assistance for the Establishment of Rabbit Breeding Farms for Wool.
  • Assistance for  the Training in Sheep, Goat and Rabbit Production

Pig Development (Pig Development-EDEG)

  • For encouraging the commercial rearing of pigs by adopting the scientific method and creation of infrastructure
  • Production and supply of improved germplasm
  • Organising stakeholders to popularise scientific practices
  • Create a supply chain for the pork industry
  • Encourage value addition for better income.

Salvaging of Male Buffalo Calves (SMBC-EDEG)

  • For salvage and rear male buffalo calves to enhance survival rate,
  • Increase availability of buffalo meat for exports and domestic markets,
  • Enlarge raw material base for leather industry,
  • Improve availability of by-products such as tallow, meat-cum-bone meal, hides, bio-fertiliser, brushes, combs and buttons, etc.,
  • Improve India’s foreign exchange earnings through export of buffalo meat and leather products,
  • Create avenues of economic gain from the genetic material which otherwise go waste by linking livestock farmers and meat- leather industry
  • Enhance employment opportunities in rural areas.

Implementing Agency and Area of Operation

The national bank for the Agriculture and Rural Development (NABARD) will be the implementing agency for component-EDEG in all states and UTS throughout the country

Salient Features

Entrepreneurship Development and Employment Generation (EDEG) project is designed mainly for the entrepreneurship development and technology infusion wherein the basket of activities which are bankable are placed from which the eligible applicant can choose from.

Eligibility Criteria

The eligibility criteria for the Entrepreneurship Development and Employment Generation (EDEG) is listed as follows:

  • Farmers
  • Individual entrepreneurs
  • NGOs
  • Companies
  • Cooperatives
  • Groups of the organised and unorganised sector which includes Self-Help Groups (SHGs) and Joint Liability Groups (JLGs).

Pattern of Assistance

The eligible activities and indicative cost norms are given in the below document:

REVISED GUIDELINES OF NLM 27.04.16-37-38 (13)

You can get the details of the eligible proportion of subsidy for various areas and various categories of beneficiaries from the document attached here:


Rate of interest

The rate of interest on the loan will be as per the RBI guidelines and declared policy of the concerned bank. The concerned bank may charge interest on the entire amount until the subsidy portions are received and from the date of the receipt of the subsidy, interest will be charged only on the effective bank loan portion (Bank loan minus subsidy).

Time Limit for Completion of Project

The time limit for completion of the project will be as envisaged under the project, subject to the maximum period of 12 months from the date of disbursement of the first instalment of the loan. The maximum period may be extended by three months by the financing bank in cases where justification provided by the applicant is found adequate.

Security Details

  • Security for availing the loan will be as per the guidelines issued by the RBI from time to time.
  • The beneficiary contribution of 10% will not be required for loans than Rs.1 lakh or any amount as specified in the RBI guidelines as revised from time to time.
  • Kisan Credit Cards (KCC) can be used for availing loans under the scheme.

Repayment Period

Repayment period or grace period for the different activities will be as follows:


EDEG Component 

Repayment Period

   Grace Period

1 Poultry Venture Capital Fund      5 to 9 years  six months to 1 year
2 Integrated Development of Small Ruminants and Rabbit Up to a maximum of nine months  Two Year
3 Pig Development   5 to 6 years  One year
4 Salvaging of Male Buffalo Calves 4 to 6 years One year

EDEG Application Procedure

The application procedure for Entrepreneurship Development and Employment Generation (EDEG) scheme is explained below:

Step 1: The entrepreneur will have to prepare a project as per the norms of Entrepreneurship Development and Employment Generation (EDEG) scheme and submit to the bank for sanction of the project.


Step 2: The bank will appraise the project as per the administrative approval issued by the DADF from time to time and if found eligible, the sanction of the total outlay excluding the margin as a bank loan.

Step 3: After sanctioning of the proposal by financing institution, they will upload the details as per the template prescribed in the EDGP portal within 30 days of sanction and block eligible subsidy amount.

Step 4: On successful upload and post validation, the bank will release the entire credit/first instalment.

  • 1st instalment release /complete credit – 30 days from the date of 1st upload
  • Submission to NABARD – 30 days from the date release of 1st instalment

Step 5: Project sanctioning committee of NABARD at head office will consider proposals uploaded by concerned financial institutions/banks in the portal and approve the subsidy cases of eligible applicants within one month of receipt of the proposal.

Release of Subsidy

The government of India will release funds in advance to NABARD to meet the subsidy claims submitted through EDEG online portal. Funds will be recouped after balance comes below a certain level in EDEG portal. NABARD will utilise the funds for providing a back-ended capital subsidy to eligible beneficiaries through financing banks as per their online subsidy claims.