RECASTED

DETAILED PROJECT PROPOSAL FOR ESTABLISHMENT OF

POULTRY ESTATE OF COMMERCIAL LAYER

IN THE STATE OF ODISHA AT MAYURBHANJ DISTRICT

Under Centrally Sponsored Scheme, Govt. of India Submitted by: __________________________________________________________ __
DEPARTMENT OF FISHERIES & ANIMAL RESOURCES DEVELOPMENT, GOVERNMENT OF ODISHA, BHUBANESWAR.

POULTRY ESTATE OF COMMERCIAL LAYER IN ODISHA (A) Project Report at a glance:

1. SITE FOR ESTABLISHMENT OF POULTRY ESTATE OF COMMERCIAL LAYER

: Mauja /Village : Gobardhana Sula P.S : Baripada, No. 144 District : Mayurbhanj, State : Odisha (07 to 08 Kms away from Baripada 2

town) 2. AREA OF LAND FOR ESTATE : A 23.84 Cents. Khata No. 173 Plot No.394, 394, 396, 397, 398 & 402 Kisama- Unnarta Yojana Jogya & Basti Jogya : 75% by Govt. of India & 25% by State of Odisha. : Steps have already been taken for selection of Facilitator through advertisement. : 100 nos. of small Commercial Layer Units of 2000 bird capacity each in a common place inside the Poultry Estate.

4. FUNDING PATTERN ON INFRASTRUCTURAL COST 5. NAME OF THE FACILITATOR

6. NUMBER OF BENEFICIARIES

(B).

Project cost for 2, 00,000 Commercial Layer in the Poultry Estate :

In this project proposal it has been considered the pattern of group approach by forming Self Help Groups of women /men involving 10 small farmers /beneficiaries to run one unit of 2,000 Commercial Layers or some unemployed youths to run one unit of 10,000 / 20,000 having ( multiple of 2,000 birds capacity, comprising of 5 to 10 such small units ). Thus, the no of entrepreneurs/ farmers will vary from the prescribed number i.e 100. But in total there will be 2,00,000 strength of Commercial Layer in a common place inside the Poultry Estate to avail maximum amount of Capital Investment Subsidy from Agricultural Promotion and Investment Corporation of Odisha Ltd. (APICOL), under the Agriculture Policy-2008, Odisha. i) The total Project cost of 2, 00,000 Commercial Layers in the Poultry Estate : Rs. 7,18,90,000/(10 SHGs in the Estate) ii) The Term Loan from Bank : Rs. 64,70,100/(as 10% of 90% on project cost) iii) Own funds/Margin money : Rs. 71,89,000/3

(as 10% of 10% on project cost) (b.i) Project cost for 2,000 Commercial Layer of one SHG/Individual unit: The total Project cost for one SHG unit (10 farmers in one SHG) The Term Loan from Bank per SHG (as 10% of 90% on project cost) Own funds/Margin money per SHG (as 10% of 10% on project cost) : Rs. : Rs. : Rs. 7,18,900/6,47,000/71,900/-

(C).

Common items of Expenditures for the Poultry Estate of Commercial Layer in Orissa as per provision in the project of Govt. of India : i) Publicity for lunching of the Scheme 5.50 lakhs ii) Creation of common infrastructure (like roads, lakhs* Electricity & water supply, bio security measures etc.) : Rs. : Rs. 264.00

iii) Selection and Training (50 beneficiaries in two stages) iv) Planning and Escort Services to beneficiaries

: Rs. 12.50 lakhs : Rs. 17.00 lakhs

v) Common facilities at Stage II : Rs. 17.00 lakhs (for processing and storage etc. after 2 years of functioning) vi) Interest Free Loan to 100 beneficiaries in the Estate : Rs. 359.45 lakhs (Interest free loan to Farmers: 50% Interest free loans to farmers, 10% contribution by beneficiary.). vii) Input Services (Feed Manufacturing Unit) : Rs. 25.00 lakhs (as 50% grant) _________________ TOTAL : Rs. 700.45 lakhs N.B: *Out of Rs. 200.00 lakhs for creation of Infrastructure Rs. 64.00 lakhs is State share on the basis of 75:25. D) Total Project Cost for establishment of Poultry Estate of Commercial Layer ( B + C) : Rs. 1419.35 lakhs E) Project assistance in shape of Grant From Govt. of India & Govt. of Orissa : Rs. 341.00 lakhs

F)

Mode of Finance i) Interest free loan i.e. 50% of the Project Cost ii) In shape of Bank Loan with interest i.e. 40% of the Project Cost iii) In shape of margin money i.e. 40% of the Project Cost : Rs. 35.95 lakhs : Rs. 323.50 lakhs : Rs. 359.45 lakhs

FINANCIAL INVOLVEMENT COMPONENT WISE: Non Recurring Expenditure for 2,000 Layer capacity : i). Construction of Building & Poultry Sheds : Rs. : Rs. : Rs. 3,60,000 /1,54,000 /10,000 /-

ii). Equipments & Cages iii). Overhead charges for Electrification Recurring Expenditure for 20,000 Layer capacity : i). ii) iii) Expenditure towards Cost of Chicks Expenditure towards Cost of Feed (14 Qtl.) Expenditure towards Medicine,&Insurance Total

: Rs. : Rs. : Rs.

37,944 /1,47,000/10,000/-

: Rs. 7,18,944 /( or Rs .7,18,900/-) N.B: The detail Project Proposal for individual 2,000 Layer bird capacity in one unit is enclosed in Annexure- II.

RECASTED DETAIL PROJECT REPORT FOR ESTABLISHMENT OF A POULTRY ESTATE OF COMMERCIAL LAYER IN ODISHA ______________________________________________________________________ 1. Background : With rapid growth in population providing food security has taken the Govt. as well as planners in a quandary. The availability of land being limited, increased production in Agriculture front has become a matter of concern for every Government. It cannot be gainsaid that, Agriculture production alone can meet the demand of human population. In this context production through Poultry sector has become centre stage as a means of alternative source of protein.

2.

Scope Poultry and Poultry products constitute an important component of

human diet in most of the developing countries of the world. This consumption is also increasing at a rapid rate due to low fat content, easy availability & cost effectiveness. Poultry is the least cost alternative only next to fish & produces more of animal protein from the same amount of feed compared to milch Cow, Sheep, Goat & Pig. Two eggs provide 160 calories of energy and more than 20% of the daily requirement of proteins, Vit A, D & B12, Riboflabin, Folic acid, Pantothenic acid, Phosphorus, Iodine along with fat.

According to Nutritional Advisory committee of India at least half an egg should be made available to an average individual which workout to be 180 egg / annum.

Poultry farming require less area with high return than any other Animal Husbandry and Agriculture activities.

Land topography & soil fertility is never a criteria for Poultry like Agriculture.

Poultry farming involves high grade sophisticated technology with higher profitability for which younger generation prefer this activity as their occupation than any other Agriculture & Allied activities.

In the primary sector, Agriculture provides about 100 to 120 days employment to the rural poor. Scanty land holding, land fragmentation and seasonal Agriculture are not able to provide full employment to the work-force which in turn creates unemployment in disguise. Poultry farming can be a viable option for rural poor to overcome the issue.

2. National Scenario:

Poultry industry is the fastest growing sector in Indian Agriculture. India ranks the 5th largest producer of egg and 9th largest producer of Poultry meat of the world producing over 34 billion eggs and about 600 thousand tones of Poultry meat in the year 2004. This spectacular increase in production has occurred during last 3 decades due to continuous efforts of our scientists, researchers and pioneers of this field. Many other factors which include increased adoption of integrated farming system, contract farming, awareness of people about diet and health, cost effectiveness of Poultry meat compared to other meat, its low fat content, superior protein quality and change of life style 7

of the people are also responsible for development of Poultry Sector. Over the past decade the Poultry industry in India has contributed approximately 1150 crores to our Gross National Product.

An individual averagely needs 125 gms. of animal protein everyday where as only 14 gms. is available which stands to 11% of the requirement. This prime shortfall can be compensated from the growth of Poultry industry, which is an important source of animal protein and can be made available to the population within the shortest possible time.

4.

State Scenario: Being situated in the threshold of West Bengal, Bihar & North Eastern

States where demand of Poultry and Poultry products has been constantly on the rise, Odisha has been identified as a suitable destination for setting of Poultry units. The Agro climatic condition of Odisha State is conducive for Poultry farming, yet the growth rate is very slow due to huge investment in this sector. It is the fastest growing sector, which registered an average growth rate of 15 % per annum in Odisha during last 5 years. The egg availability per year per head in Odisha is 32 eggs as compared to national average of 42 eggs. Poultry development in the State has taken a quantum leap in the last three decades but the layer sector in the State is not up to the desired level. The Present human population in Odisha is 36.7 million (as per census 2001). 70% of the Poultry products and eggs are consumed in urban and semi urban areas. With the change in rearing and feeding practices, the untouchability of Poultry meet and eggs got changed and got wide acceptance. Spread of education is also responsible for accepting eggs as a nutritious item in the diet. Poultry products like egg and chicken constitute a primary source 8

of animal protein. In this context it is desirable to enhance egg production in the State. The Govt. of Odisha is now giving more thrust to facilitate egg production through certain initiatives and policy decisions. The increase in egg production of the State not only will eradicate the protein hunger of the State but also can create huge employment opportunities for people. The scope in this sector is enormous. The growth in Poultry sector will help in development of a number of supporting and allied industries like compound feed manufacturing, equipment and machinery, pharmaceuticals & biological. The Department of Fisheries & Animal Resources Development has embarked upon an ambitious programme to produce 59 lakh commercial eggs per day from 73.6 lakh layer birds during the next 10 years period. Different Govt. Departments working on poverty alleviation programme have been facilitated with different schemes and projects for implementation.

Year-wise Production and Per capita Availability of Milk, Meat and Eggs in Odisha Year 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 Production of eggs (in millions) 762.79 648.31 730.10 858.02 909.49 931.06 12159.61 1278.70 Per capita availability of eggs (nos/annum) 22 18 20 24 25 25 33 34

Source: Directorate of Animal Husbandry & Veterinary Services, Odisha, Cuttack.

The Backyard Poultry also play a vital role in the livelihood of millions of poor people particularly tribals. As per 2003 Livestock Census, the total Poultry population including Ducks in the State was 189.94 lakhs. The present demand for table eggs is 64 lakh per day (including the requirement for Mid Day Meal programme) vis--vis availability of 22 lakh eggs from commercial layer units. Presently, about 41 numbers Commercial Layer farms having 28.6 lakh birds are running in the State. The size of these Commercial Layer farms are ranging from 15,000 birds to 1, 50,000 birds. The total table egg production assuming 80 % production comes to 22 lakhs per day.

The Govt. of Odisha has taken the following initiatives: The Govt. of Odisha has declared Poultry as Agriculture in 2005.

This step has enabled our Poultry farmers to avail various incentives as being offered to Agriculture. Finance Department has already issued VAT exemptions on

poultry feed, feed supplements and additives. Government land can be alienated under Odisha Government

Land Settlement Act vide schedule-II of OGLS Rules. Financing Institutions are treating poultry as priority sector. Capital Investment Subsidy @ 25% of the capital investment in

case of the general male entrepreneurs and @ 33% in case of SC/ST/Women/Graduates in Agriculture & Allied discipline excluding cost of land maximum up to 25 lakhs is being granted under Agriculture Policy 2008 by Agricultural Promotion & Investment Corporation of Odisha Limited (APICOL) for promotion of Poultry Sector.

10

State Level Apex Committee on Poultry Development constituted

to ensure better co-ordination. sector. Additional increase in demand of egg through introduction of Venture capital fund introduced by Govt. of India for poultry

MDM programme. Strengthening of Department Poultry Farms - As a measure for

promotion of Backyard Poultry in the State, ARD Department has taken all steps for strengthening of departmental Poultry & Duck farms under the CSS programme Assistance to State Poultry / Duck farms. Odisha Electricity Regulatory Commission (OERC) has reduced

the power tariff for poultry farms from Rs.4/- per unit to Rs.1.10 /unit.

STATUS OF GOVT POULTRY / DUCK FARMS IN THE STATE UNDER THE CENTRALLY SPONSORED SCHEME ASSISTANCE TO STATE POULTRY / DUCK FARMS: Eight nos. of State Poultry Farms and two nos. of Duck Breeding Farms have been strengthened at the cost of Rs 85.00 lakhs each under CSS assistance on 80:20 basis. The objective of the scheme is to produce low-input-technology birds specified by Govt. of India, which can be suitable for Backyard Poultry and having better survival at the farmers door. It has been proposed to maintain 4000 parent layer bird stock out of which 2000 birds in lay through 11

out the year at each of the farms with an aim to produce 3.65 lakhs hatching eggs to have 2.2 lakhs Day-Old-Chicks per annum to cater the need of farmers of the area. This is intended to generate extra supplementary income for their livelihood. A provision has also been made for Rs. 15.00 lakhs as a revolving fund and placed with the concerned District Livestock Development Society (DLRDS) / Joint Director, Chipilima account for purchase of hatching eggs, day old parent chicks, feed, medicine and transportation charges etc. The revolving fund is being effectively utilized to make this operation as self sustaining. All the Farm Managers have been delegated with sufficient financial and administrative powers to implement the scheme.
Sl. no. Name of the Farm Year of Estb. Area (In Acres) Approved strength Enhanced Strength with CSP assistance Present Bird Strength Status at Present

1 2 3 4 5 6 7 8 9 10

RPF Sundargarh DPF Bolangir IPDP BBSR DBF Cuttack DPF Semiliguda RPF Koraput PBF Angul DPF Bhanjnagar SPU Chipilima DBF Chipilima

1938 1966 1964 1977 1966 1957 1942 1961 1966 1990

32.94 5.00 18.00 3.05 5.00 9.00 48.60 3.00 2.00 6.00

1500 1000 1500 1000 1000 500 3000 500 500 250

4000 4000 4000 4000 4000 4000 4000 4000 4000 4000

1781 2186 1869 860 831 2254 1286 2096 -

Functioning Functioning Functioning Functioning Functioning Functioning Functioning Functioning Functioning Functioning

INFORMATION ON DEPARTMENTAL POULTRY FARMS FROM 2004-05 TO 2008-09

Year Parent birds maintained ( in Nos. ) Egg production ( in Lakhs ) Eggs set for hatching (inLakhs ) Chicks produced ( in Lakhs ) Revenue Receipt ( in Rs. )

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 As on 31-03-10

2709 2468 3663 2656 10588 13163

1.66 1.77 1.94 2.83 2.33 7.15

0.55 0.51 0.91 1.90 4.56 7.65 (including eggs outsourced)

0.43 0.38 0.75 1.05 2.81 4.72

8.72 10.33 13.12 17.25 43.89 85.23

12

A Project Report for establishment of a Poultry Estate of Commercial Layer in the State has been accordingly prepared. 5. VISION FOR POULTRY DEVELOPMENT The Govt. of Indias scheme to establish a Poultry Estate will attract the Small/Marginal farmers/ Unemployed youths to set up Commercial Layer in the estate to enhance egg production in the State. Odisha to emerge as a role model for others in Poultry farming under Poultry Estate through scientific management and adoption of modern technologies.

5.1.1

5.1.2

5.2. STRATEGY 5.2.1 Running all the 10 Government Poultry Farms with optimum capacity utilization.

5.2.2. Ensuring operationalization of 48 Hatcheries set up under SGSY Infrastructure Fund with both backward and forward linkages. 5.2.3 Promoting Backyard dual purpose small Poultry units along with Chick Rearing Units for rearing of chicks for initial 4 weeks.

5.2.4. Training of Poultry Estate members on Poultry management, feeding practices & particularly vaccination. 5.2.5. Conservation of native germplasm. 5.2.6. Initiating steps for contract farming of Maize. 5.2.7. Training of farmers and Veterinary staffs. GOAL: day. Increase commercial egg production from 22 lakh to 59 lakh eggs per

13

5.4. SWOT Analysis of the sector: 5.4.1. Strength: Shorter gestation period. Favourable Government policy measures. Good network of AH institutions. Poultry and Poultry products constitute an important component of human diet in most of the developing countries of the world. The consumption is also increasing at a rapid rate due to low fat content, easy availability & cost effectiveness.

Poultry is the least cost alternative next to fish only & produces more of animal protein from the same amount of feed as compared to milch cow, sheep, Goat & Pig.

Two eggs provide 160 calories of energy constituting more than 20% of the daily requirement of proteins, Vit A, D & B12, Riboflavin, folic acid, Panthothenic acid, Phosphorus and Iodine along with fat.

According to Nutritional Advisory Committee of India, at least half an egg should be made available to an average individual which workout to be 180 eggs / annum. Poultry farming require less area with high and quick return than any other Animal Husbandry and Agriculture activities.

5.4.2. Opportunity: 14

 Increasing demand of egg. Availability of land at an affordable price.

5.4.3. Weakness: Price fluctuation. Highly capital intensive. Slow adoption of automation in production system.

5.5.4. Threat: Outbreak of disease like Bird Flu. WTO: exposing the local industry to open competition.

In order to produce 59 lakh commercial egg production per day in coming 10 years, additional 45 lakh layer capacity will be created in the form of setting up new layer units and expansion of existing units. In this Recasted Detailed Project Proposal with the assistance of Govt. of India and Govt. Odisha, one Poultry Estate of Commercial Layer will be established in the State by rearing 2.00 lakh of Commercial Layer birds involving Self Help Groups of women /men comprising 10 small farmers ,beneficiaries to run one unit of 2,000 Commercial Layers and 10,000 to 20,000 capacity birds will be reared by some individual unemployed youths (having multiple of 2,000 birds capacity, comprising of 5 to 10 such small units). Thus, the no. of entrepreneurs/ farmers/ beneficiaries will be varied from the prescribed number i.e 100. But the total strength of birds will be 2, 00,000 numbers inside the Poultry Estate under close supervision of the Departmental experts. 6. FEATURES OF THE POULTRY ESTATE OF COMMERCIAL LAYER: 15

6.1.

The Poultry Estate of Commercial Layer will have establishments of

small farmers who will organize their own independent society-thus accruing both, benefits of economies of scale and achieve better market opportunities with promotion of quality products, instilling confidence in consumers. Creation of estates is primarily envisaged on the line of other industrial estates where forward and backward linkages will be made available within the estate itself. As far as the Poultry Estate of Commercial Layer is concerned, State Government will provide facilities in terms of land on lease, development of estate area, electricity, water supply, training, common facilities like feed mixing, storage, health coverage adoption of scientific production methods etc. The entrepreneurs / farmers who will set up Commercial Layer units in the estate will also be assisted with Interest Free Loan provided them under the project. All the above will be carried out by the Facilitator in liaison with experts and Govt.

6.2.

State Level Sanction and Monitoring Committee (SLSMC): The State Level Sanction and Monitoring Committee (SLSMC) has been

constituted vide Resolution No. 813 /F &ARD, Bhubaneswar, the 30.1.10 by the Department of Fisheries & Animal Resources Development, Odisha with the following members. 1. Principal Secretary / Secretary Fisheries & Animal Resources Development Department, Odisha. 2. Representative of Ministry of Agriculture, Department of Animal Husbandry Dairying, Government of India. 3. Director AH & VS, Odisha

Chairman

Member Member Convener

16

4. 5. 6.

Representative of Lead Bank (UCO Bank) Representative of NABARD Joint Secretary to Government Fisheries & Animal Resources Development Department, Odisha. Deputy Director (Poultry) O/O the Director, AH & VS, Odisha

Member Member

Member

7.

Member (Enclosed at Annexure I)

6.3.

Identification and allotment of Land: A Patch of Govt. land measuring 23.84 Acres is identified at Gobardhana

Sula, Mauja of Baripada which is only 07-08 Kms. away from Baripada town in the district of Mayurbhanj and well approachable. The process for transfer of the said land to F & ARD Department has already been taken by the Collectorcum-District Magistrate, Mayurbhanj. In the earlier proposal it was decided to take this project in the village of Nuagaon of Karanjia Sub-Division of same Mayurbhanj district. The land will be given to the Poultry Society on lease basis for establishment of the Poultry Estate, later on will be sub-leased to the small farmers who will set up their units for easy finance from bank. The land has been identified keeping in view factors like available suitable farmers, distance from water bodies, distance from existing farms, migratory birds flying route, etc. (Enclosed at Annexure IV A & B )

6.4.

Fencing: The front side of the Estate will be fenced with break wall with Iron Gate

with provision of foot bath along with vehicle spray wash for better disinfection to maintain good Bio-security. The other part of the land meant for Poultry Estate will be provided with barbed wire fencing. 17

6.5.

Land development with internal roads: The land inside the estate will be leveled for construction of poultry

sheds, feed plant, office, store and rest room, all weather internal road communication will also be provided for transportation of building materials, feed ingredients, medicines and vaccines provide to the estate and transport eggs, empty gunny bags, and garbage from the estate. The expenditure for the purpose will be met from the funds available for infrastructure development by Govt. of India and matching share of the State Govt.

6.5.

Electricity Supply: Constant uninterrupted Electricity supply to the Estate will be provided

by installing a heavy load capacity transformer with stand by diesel gen-set as it is an essential component for poultry farming during brooding of chicks and pumps used for water supply as well as lighting of the estate area. The expenditure incurred for Electricity supply will be met from funds provided by Govt. of India and matching share of the State Govt.

6.7.

Water supply: Like Electricity, provision of clean and cool drinking water is another

essential component of a Poultry Framing. Digging of required number of bore wells inside Poultry Estate with over head tanks, inside pipe line connections to the individual Poultry sheds will be made from the funds available from the Govt. of India for infrastructure development.

6.8.

Provision of Feed Plant:

18

A Layer bird consumes around 47 Kgs. of balanced Poultry feed from day-old to point of culling. To prepare this huge quantity of poultry feed a own Feed Mixing Plant will be established nearer/ adjacent to the Estate area with an amount of Rs. 25.00 lakh available from Govt. of India as 50% grant.

6.9.

Store rooms for Eggs: A store room for eggs and has been proposed in the project proposal.

6.10.

Store room for vaccines, medicines: A separate store room for medicines and vaccines has been proposed in

the project proposal.

6.11.

In-house Disease Diagnostic Laboratory: A well furnished room for In-house Disease Diagnostic Laboratory has been

provisioned in the project proposal.

6.12.

Health Coverage: The existing District Diagnostic Laboratory of the Department

functioning at the District Hqr. Veterinary Dispensary will be attached to the Poultry Estate for looking after the Health Coverage of the birds round the year. Beside that one In-house Disease Diagnostic Laboratory will operate by the experts of the Department to check the day to day health hazards of the Poultry Estate. One undertaking is enclosed in Annexure-V.

6.13.

Waste Disposal:

19

Bio-security measure will be maintained meticulously inside the Estate to get optimum egg production. For the purpose all the waste materials produced will be scientifically disposed off so that it will not create any health hazards for the Estate as well as for the surroundings. There will be a provision of one Incinerator /Waste Disposal pit at one corner of the Estate for disposal of the dead birds & waste materials etc.

7. 7.1.

IMPLEMENTATION: Identification and allotment of land for Estate: At the initial stage 23.84 Acres of Govt. land has already been identified

in Mayurbhanj District in Village/Mauza Gobardhan Sula, Block, P.S & Tahasil of Baripada in Baripada Sub-Division for Poultry Estate of Commercial Layer.

7.2.

Identification of Entrepreneurs (small farmers): Interested small farmers will again be identified near around the Estate

with the help of District Administration and Departmental personals to be the members of the Poultry Estate for taking up Commercial Layer farming. Where Self Helf Groups of women /men comprising 10 small farmers /beneficiaries to run one unit of 2,000 Commercial Layers or some unemployed youths to run one unit of 10,000 / 20,000 having (multiple of 2,000 birds capacity, comprising of 5 to 10 such small units) SC, ST farmers on priority basis. The selection process will be taken up after sanction funds (Central share and State share).

These farmers will be provided with special incentives like Capital Investment Subsidy under Agriculture Policy-2008 @ 25% of the capital investment in case of the general male entrepreneurs and @ 33% in case of SC / ST / Women / Graduates in Agriculture & Allied discipline 20

excluding cost of land maximum up to 25 lakhs in addition to Rs.3.59lakhs as Interest Free loan for each individual entrepreneur with 10% margin money.

As the total project cost for a individual unit of 2,000 Commercial Poultry birds comes to Rs. 7,18,900/- and 10% margin money i.e. Rs. 71,890/is to be deposited with the financing Bank by individual/ one group to avail term loan against the project, out of which Rs. 3,59,450/- is the IFL grant by GOI.

7.3.

Identification of Facilitator: In the 1st meeting of the SLSMC held on 09.04.200 it was decided to select

a Facilitator through advertisement in the local news papers who will keep liasioning with Govt. Departments, NABARD, Banks, farmers and APICOL. The Facilitator will be selected specially who is in this line like production and supply of Day-Old-Chicks, Poultry Feeds, also have national standard setup to reduce the financial burden to the farmers with backward & forward linkages to the Estate for smooth running of the estate.

7.4.

Construction of Common Infrastructure Facilities: Once the Project is approved by GOI and funds released for the purpose,

Facilitator will work for creation of common infrastructure like supply of electricity and water, internal roads, fencing, footbath and other bio-security measures like waste disposal system outside the individual units, but within the estate. This expenditure subject to a ceiling of Rs.264 lakh will be given on grant basis and will be shared by Central and State Governments in the ratio of 75:25. The facilitator would work under the overall supervision of the SLSMC as per the conditions laid by them. SLSMC has the right to change / remove the 21

facilitator if do deviate the guidelines or act against the interest of the beneficiaries. 7.5. Training of the entrepreneurs: The Facilitator in consultation with the SLSMC will arrange the experts and conduct training programme of the farmers /entrepreneurs on scientific layer farming. The training programme will be of 15 days duration which would include housing, management and feeding practices of layer birds and it will be organized at Block Head Quarter nearer to the villages of the individual farmers of the estate. There will be at least 3-4 field exposure visits during the training period. Common Items of Expenditure: 1. Publicity for launching the scheme: Rs. 5. 50 lakh as grant. 2. Creation of common infrastructure like roads, electricity and water supply, bio security measures, etc. within the estate but outside the individual units and also managerial subsidy to the estate: Rs. 264 lakh per estate as grant. 3. Selection and Training of beneficiaries in two stages: Rs. 12.50 lakh as grant. 4. Planning and Escort services to Beneficiaries: Rs. 17.00 lakh as grant. 5. Common facilities at Stage II (for processing and storage etc. after 2 years of functioning):Rs. 17.00 lakh as grant.

Annexure-1

22

Sl. No 1

Component Farming Estate Dev. Of Infrastructure: Grant: 75:25 Centre to State Share i)Fencing with front side brick wall having iron gate, foot bath, vehicle washing system with sprayer for disinfection, with watchman shed. ii) Land development with internal RC roads to poultry shed iii) Electricity supply with installation of transformer, including 10 nos. of Genset. iv) Water supply by digging of bore well and construction of over heads and pipe lines to the sheds. v) Incinerator and its installation. vi) Common egg store. vii) Common medicine store. viii) In-house Disease Diagnostic Laboratory Interest free loan to Farmers: 50% Interest free loans to farmers, 10% contribution by beneficiary. Escort services: Grant to NABARD II stageCommon facility Grant to NABARD Other input services: 50% to be given as interest free loan Training (farmers + bankers): Grant to NABARD Publicity: Grant to NABARD Survey Staff & Meeting: Grant to NABARD Adm. Cost: 2.5% of outlay to NABARD

Avg. unit Cost Rs. in lakhs

Physical 1 50.00

Financial ( Rs. In Lakhs) CS 39.50

SS 10.50

100.00 50.00 25.00

75.00 37.50 18.75

25.00 12.50 6.25

30.00 2.00 2.00 5.00 Total:-264.00 Rs. 3.5945 lakhs 100 Rs. 16.66 lakh Per estate Rs. 16.66 lakh Per estate Rs. 50 lakh Per unit(maximum) ----1 1 1 110 ----

22.50 1.50 1.50 3.75 Total:200.00

2 3 4 5 6 7 8 9

7.50 0.50 0.50 1.25 Total:64.00 359.45 0.17 0.17 0.25 0.125 0.055 0.125

As per outlay

Annexure-II ECONOMICS OF LAYER FARMING

23

A. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. B.
Sl. No.

SUMMARY : Unit size System of rearing Unit Cost Margin Bank Loan Interest Free Loan Repayment Period Interest rate NPW at 15 % DF BCR at 15 % DF IRR % : : : : : : : : : : : 2,000 bird under 1+2 system Deep litter cum cage system Rs. 7, 18,900 Rs. 1, 79,725 Rs. 1, 79,725 Rs. 3, 59,450 8 yrs. with one year grace period 12 % p.a Rs. +252315 1.2 : 1 22.1 %

INVESTMENT COST :
Particulars Specifications Physical Units Unit Cost (Rs./Unit) Total Cost (in Rs.)

1.

Sheds a). Brooder-cum-Grower shed b). Layer shed

1.0 sft. Per bird (DL) 1.0 sft. Per bird (CS)

1000 sft.

120

120.000 240,000

2.

3.

4.

Equipments a). Feeders and waterers and 1000 birds brooders for chicks b). Feeders and waterers for 1000 birds growers c). Cages for layer 2000 birds Capitalisation of recurring expenses for first 3 batches a). Chick Cost 2040 DOCs b). Feed Cost for 2000 birds 7 kg./bird 14000 kg. c). Overheads such as cost of Rs. 10.00 / bird 2000 birds medicines, vaccines, insurance, Electrical charges, litter for growing period d). Labour cost Family labour Total Financial outlay (TFO)

8 6 70 / bird 18.60 10.50 10

8,000 6,000 140,000 37,944 147,000 20,000

718,944 or 718,900 24

C. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.

TECHNO ECONOMIC PARAMETERS 1,000 1-8 9-20 21-72 1+2 26 300 2.00 40 120 8 6 70 5 6 18.60 3 7 39 11 9 Family labour 10 10 25 12 8 1 10 10 13 4

No. of birds (per batch) Brooding period (age in weeks) Growing period (age in weeks) Laying period (age in weeks) System of rearing (deep litter cum cage system) Interval between batches (weeks) Egg production per bird (Hen House) Farm gate price per egg (in Rs.) Cull bird price (in Rs.) Cost of construction of shed (Rs./s.ft) Equipment cost (Rs./brooder) Equipment cost (Rs./grower) Equipment cost of Cage (Rs./layer) Mortality in growing period (%) Mortality during laying period (%) Cost of DOCs (Rs./chick) Supply of free chicks (%) Feed requirement during growth (kg./bird) Feed requirement during lay (kg./bird) Cost of grower feed (Rs./kg.) Cost of layer feed (Rs./kg.) Expenditure on labour Over heads cost during growing period (cost of Medicines, Vaccines, Insurance, litter etc.) Over heads cost during lay (cost of Medicines, Vaccines, Elct. charges etc. Margin money (%) Interest rate (%) Repayment period (years) Grace period (years) Depreciation on shed (%) Depreciation on Equipment (%) Construction period (weeks) Rest Period for sheds (weeks)

25

D.

ECONOMICS OF LAYER FARMING FLOCK PROJECTION CHART

Particulars Batch size No. of batches of chicks purchased No. of chicks purchased No. weeks of brooding and growing No. of weeks in lay No. of batches culled No. of culls sold

I II 1000 chicks 2 2 2040 2040 28 43 19 ---

III

YEARS IV V

VI

VII

VIII

2 2040 36

2 2040 36 96 2 1880

2 2040 37 96 2 1880

2 2040 40 96 2 1880

2 2040 38 99 2 1880

2 2040 35 98 2 1880

95 98 1 2 1880 1880

26

CASH FLOW STATEMENT In Rupees

Sl. No. Particulars I II III IV V VI VII VIII

I.
1. 2. a. b.

COSTS
Capital Cost Recurring Costs Cost of Chicks Cost of Grower feed Cost of Layer feed Misc. Exp. Growing Misc. Exp. Laying 718900

--* --*

37944 109200

37944 151200

37944 151200

37944 155400

37944 168000

37944 159600

37944 147000

c. d. e.

128250 --* 3654

641250 13000 18274

661500 18000 18844

648000 18000 18460

648000 18500 18460

648000 20000 18460

668250 19000 13036

661500 17500 18844

TOTAL COST II.

a. b.

850804

819668

887488

873604

878304

892404

897830

882788

BENEFITS
Sale of Eggs Sale of Culled birds Sale of Manure Residual value of 228030 37600 1140152 75200 1176157 75200 1152154 1152154 1152154 75200 75200 75200 1188158 75200 1176157 75200

c. d.

2500 --

10000 --

10000 --

10000 --

10000 --

10000 --

10000 --

10000 94800

27

Sheds / Equipments TOTAL BENEFIT 268130 Net Benefit (Total Benefit Total Cost) DF @ 15% NPW @ 15 % discount BCR @ 15 % DF IRR % -582674

1225352 1261357 1237354 1237354 1237354 1273358 1356157

405684 373869 363750 359050 344950 375528 473369

0.87
+ 252315

0.756

0.658

0.572

0.497

0.432

0.376

0.327

1.2: 1 22.1%

REPAYMENT SCHEDULE

Interest Free Loan (in Rs.) Bank Loan (in Rs.) Interest rate (% p.a) Repayment period

: : : :

3, 59,450 1, 79,725 12 8 years incl. 1 year grace In Rupees

Loan O/s Year Gross surplus 2 405684 373869 363750 359050 344950 375528 378569 Bank Loan 3 179725 179725 155000 130000 100000 74000 48000 22000 Interest Free Loan 4 359450 359450 319000 275000 220000 165000 110000 55000

Interest 12 % per annum 5 21567 21567 18600 15600 12000 8880 5760 2640

1 I II III IV V VI VII VIII

Repayment of Principal Bank Interest Loan Free Loan 6 7 --24725 40450 25000 44000 30000 55000 26000 55000 26000 55000 26000 55000 26000 55000

Total out go 8 (5+6+7) 21567 108309* 87600 100600 93000 89880 86760 83640

Net surplus 9 -21567 297375 286269 263150 266050 255070 288768 294929

28

* Interest on bank loan for first year recovered in the second year

*************************

29