Madhya Pradesh government is running Acharya Vidyasagar Gau Samvardhan Yojana for small and marginal farmers who want to start a dairy unit of 5 or more milch animals. Under this scheme, a dairy project of up to ₹10 lakh can be approved, and the Animal Husbandry Department pays back interest of up to ₹25,000 every year for 7 years.
Margin money support of 25 percent (maximum ₹1.50 lakh) is given to General category applicants and 33 percent (maximum ₹2 lakh) to SC and ST applicants. Rest of the project money comes as a bank loan. As of August 2026, the scheme is listed on the Directorate of Animal Husbandry and Dairying portal and applications are taken through the district office all year round, with no fixed last date.
Acharya Vidyasagar Gau Samvardhan Yojana 2026 Details
Main aim of this scheme is simple. Raise milk production in the state, improve the milk giving capacity of cattle, give dairy farmers a steady income and create work in villages. Milk route areas get top priority when cases are selected, since collection and sale of milk is easier there.
Anyone from any category can apply. Land is the one condition people miss. You need at least 1 acre of farm land for 5 animals, and if you want more animals, the land needed goes up in the same proportion. So a bigger unit means more land in your name.
Money side of the scheme works in three parts. Bank loan covers 75 percent of the project cost. Margin money support covers a fixed share as per your category. Whatever is left, you put in from your own pocket. Interest is not fully free, only the part up to 5 percent a year is paid back by the department, and anything above that rate you pay yourself.
Highlights of Acharya Vidyasagar Gau Samvardhan Yojana
| Detail | Information |
|---|---|
| Scheme Name | Acharya Vidyasagar Gau Samvardhan Yojana |
| Launched By | Madhya Pradesh Government, Animal Husbandry and Dairying Department |
| State | Madhya Pradesh |
| Eligible People | Small and marginal farmers of all categories |
| Unit Size | Minimum 5 milch animals |
| Maximum Project Cost | ₹10 lakh |
| Bank Loan Share | 75 percent of project cost |
| Margin Money | 25 percent up to ₹1.50 lakh (General), 33 percent up to ₹2 lakh (SC/ST) |
| Interest Payback | Up to 5 percent a year, maximum ₹25,000 a year, for 7 years |
| Application Mode | Offline, through Gram Sabha and district office |
| Official Website | mpdah.gov.in |
Who Can Apply for This Scheme
Scheme is open to small and marginal farmers of every category, that is SC, ST, OBC and General. Before you put in the papers, check these points once.
- You should be a small or marginal farmer living in Madhya Pradesh, since this is a state scheme run by the district animal husbandry office.
- Farm land of at least 1 acre in your name is required for a 5 animal unit, and more land if you plan a bigger unit.
- Your unit must have a minimum of 5 milch animals, cows or buffaloes, because smaller units are not approved under this scheme.
- You need a bank account and Aadhaar, as the loan and the payment go through the bank only.
- You should be able to arrange your own share of the cost, because bank loan and margin money together do not cover 100 percent of the project.
Benefits You Get
Biggest help here is the mix of loan, subsidy and interest payback, which brings down the monthly load on a new dairy owner. A project of ₹10 lakh with a ₹2 lakh margin money support and 7 years of interest payback is a lot lighter than a plain bank loan.
Interest payback is worked out on 75 percent of the unit cost or on the loan you actually took, whichever is lower. Rate used is 5 percent a year with a ceiling of ₹25,000 a year. If your bank charges 9 percent, the department pays back the 5 percent part and you carry the remaining 4 percent. This goes on for 7 years from the loan.
Application Process for Acharya Vidyasagar Gau Samvardhan Yojana
Whole process is offline and starts in your own village, not on any website. Keep your land papers, Aadhaar and bank passbook ready before you begin.
STEP 1 - Meet the veterinary officer or the in charge of the nearest animal dispensary in your area and get the application form for Acharya Vidyasagar Gau Samvardhan Yojana. Ask for the current unit cost sheet as well, so your project plan matches the department format.
STEP 2 - Fill the form with your land details, number of animals you plan to keep, shed plan and the total project cost, then attach copies of Aadhaar, land record (khasra or B1) and bank account details.
STEP 3 - Put your name and project before the Gram Sabha of your village and get it approved there. Without Gram Sabha approval, the file does not move ahead.
STEP 4 - Approved names from the Gram Sabha go to the Janpad Panchayat meeting for the next round of approval. Follow up with the Panchayat office to know the meeting date.
STEP 5 - After Janpad Panchayat clears it, the Deputy Director of the district Animal Husbandry Department sends your case to the bank for sanction. Bank does its own check of your papers and repaying capacity.
STEP 6 - Once the bank sanctions the loan, buy the animals as per the approved plan and inform the department. Margin money and the yearly interest payback are then credited to your loan account.
Documents Required
Papers asked at the district office are the usual ones, but land proof matters the most here because the whole eligibility rests on it.
- Aadhaar card of the applicant for identity and for the DBT payment.
- Land ownership papers such as khasra, khatauni or B1 copy showing the required farm land.
- Bank account passbook copy of the account where the loan will be given.
- Caste certificate, if you are claiming the 33 percent SC or ST margin money.
- Passport size photographs and the project plan of the dairy unit.
Contact and Help
For any doubt about your case, the first person to meet is the nearest veterinary officer, the in charge of the animal dispensary or the Deputy Director of Animal Husbandry in your district. For state level queries, the Directorate at Kamdhenu Bhawan, Vaishali Nagar, Kotra Sultanabad, Bhopal 462003 can be contacted on phone 0755 2772262 or by email at dirveterinary@mp.gov.in. If your file is stuck somewhere, a complaint can be filed on CM Helpline 181.
Other Madhya Pradesh schemes worth checking are Mukhyamantri Madad Yojana and Vivah Sahayata Yojana.
References
Directorate of Animal Husbandry and Dairying, Madhya Pradesh official website
Madhya Pradesh CM Helpline for complaints
FAQ's
How much loan is given under Acharya Vidyasagar Gau Samvardhan Yojana?
Project of up to ₹10 lakh can be approved for a unit of 5 or more milch animals. Out of this, 75 percent comes as a bank loan and the rest from margin money support and your own share.
How much land is needed to apply?
At least 1 acre of farm land is needed for a 5 animal unit. For a bigger unit, land requirement goes up in the same proportion.
Can the application be filed online?
No. Process is offline. It starts with Gram Sabha approval, then Janpad Panchayat approval, and then the district Deputy Director sends the case to the bank.
How much interest does the department pay back?
Interest up to 5 percent a year, with a ceiling of ₹25,000 a year, is paid back for 7 years. Interest charged above 5 percent has to be paid by the applicant.
Is the scheme only for SC and ST families?
No, all categories can apply. Only the margin money share differs, 25 percent up to ₹1.50 lakh for General and 33 percent up to ₹2 lakh for SC and ST applicants.
Is this scheme still running in 2026?
Yes. It is still listed among the running schemes of the Madhya Pradesh Animal Husbandry and Dairying Department, and applications are taken at the district level through the year.