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

4. FUNDING PATTERN ON
INFRASTRUCTURAL COST

: 75% by Govt. of India & 25% by State

of Odisha.

5. NAME OF THE FACILITATOR

: Steps have already been taken for

selection of Facilitator through
advertisement.

6. NUMBER OF BENEFICIARIES

: 100 nos. of small Commercial Layer

Units of 2000 bird capacity each in a
common place inside the Poultry
Estate.

(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)

(C).

: Rs.

7,18,900/-

: Rs.

6,47,000/-

: Rs.

71,900/-

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

: Rs.

ii)
Creation of common infrastructure (like roads,
lakhs*
Electricity & water supply, bio security measures etc.)
iii) Selection and Training
(50 beneficiaries in two stages)
iv) Planning and Escort Services to beneficiaries

: Rs. 264.00

: 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

: Rs.

359.45 lakhs

ii) In shape of Bank Loan with interest i.e. 40%

of the Project Cost

: Rs. 323.50 lakhs

iii) In shape of margin money i.e. 40%

of the Project Cost

: Rs.

35.95 lakhs

: Rs.

3,60,000 /-

ii). Equipments & Cages

: Rs.

1,54,000 /-

iii). Overhead charges for Electrification

: Rs.

10,000 /-

: Rs.
: Rs.
: Rs.

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

FINANCIAL INVOLVEMENT COMPONENT WISE:

Non Recurring Expenditure for 2,000 Layer capacity :
i).

Construction of Building & Poultry Sheds

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.
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.

Venture capital fund introduced by Govt. of India for poultry

sector.

Additional increase in demand of egg through introduction of

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

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

Enhanced
Strength
with CSP
assistance

Present
Bird
Strength

4000
4000
4000
4000
4000
4000
4000
4000
4000
4000

1781
2186
1869
860
831
2254
1286
2096
-

Status at
Present

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

5.1.1

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.

5.1.2

Odisha to emerge as a role model for others in Poultry farming under

Poultry Estate through scientific management and adoption of modern
technologies.

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:
Increase commercial egg production from 22 lakh to 59 lakh eggs per

day.

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.

Representative of Lead Bank (UCO Bank)

Member

5.
6.

Representative of NABARD
Joint Secretary to Government
Fisheries & Animal Resources Development
Department, Odisha.

Member

7.

6.3.

Deputy Director (Poultry)

O/O the Director, AH & VS, Odisha

Member

Member
(Enclosed at Annexure I)

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.

IMPLEMENTATION:

7.1.

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

2
3
4
5
6
7
8
9

Component

Avg. unit Cost

Rs. in lakhs

Physical

Farming Estate Dev. Of Infrastructure:

Grant: 75:25 Centre to State Share

Financial
( Rs. In Lakhs)
CS

SS

i)Fencing with front side brick wall

having iron gate, foot bath, vehicle
washing system with sprayer for
disinfection, with watchman shed.

50.00

39.50

10.50

ii) Land development with internal RC

roads to poultry shed
iii) Electricity supply with installation of
transformer, including 10 nos. of Genset.

100.00

75.00

25.00

50.00

37.50

12.50

iv) Water supply by digging of bore well

and construction of over heads and pipe
lines to the sheds.

25.00

18.75

6.25

v) Incinerator and its installation.

30.00

22.50
1.50
1.50
3.75
Total:200.00

7.50
0.50
0.50
1.25
Total:64.00
359.45

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

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

0.17

0.17

Rs. 50 lakh
Per unit(maximum)
--

0.25

110

0.125

--

--

0.055

--

--

0.125

--

--

As per outlay

Annexure-II
ECONOMICS OF LAYER FARMING
23

A.

SUMMARY :

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

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 :

B.
Sl.
No.

1.

Particulars

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

2.

3.

4.

Specifications

Physical
Units

Unit Cost
(Rs./Unit)

1.0 sft. Per bird

(DL)
1.0 sft. Per bird
(CS)

1000 sft.

120

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)

Total
Cost
(in Rs.)

120.000
240,000

8,000

6,000

70 / bird

140,000

18.60
10.50
10

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

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)

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

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

2
2040
37

2
2040
40

2
2040
38

2
2040
35

95
98
1
2
1880 1880

96
2
1880

96
2
1880

96
2
1880

99
2
1880

98
2
1880

26

CASH FLOW STATEMENT

In Rupees
Sl.
No.

I.
1.

Particulars

II

III

IV

VI

VII

VIII

--*

37944

37944

37944

37944

37944

37944

37944

--*

109200

151200

151200

155400

168000

159600

147000

128250

641250

661500

648000

648000

648000

668250

661500

--*

13000

18000

18000

18500

20000

19000

17500

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

718900

3654

18274

18844

18460

18460

18460

13036

18844

TOTAL COST

850804

819668

887488

873604

878304

892404

897830

882788

228030
37600

1140152
75200

1176157
75200

1152154 1152154 1152154

75200
75200
75200

1188158
75200

1176157
75200

2500

10000

10000

10000

10000

10000

10000

10000

--

--

--

--

--

--

--

94800

2.
a.
b.

c.
d.
e.

II.

BENEFITS

a.
b.

Sale of Eggs
Sale of
Culled
birds
Sale of
Manure
Residual
value of

c.
d.

27

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

1225352 1261357 1237354 1237354 1237354 1273358 1356157

-582674

405684

373869

363750

359050

344950

375528

473369

0.87

0.756

0.658

0.572

0.497

0.432

0.376

0.327

+ 252315

1.2: 1
22.1%

REPAYMENT SCHEDULE

Interest Free Loan (in Rs.)

3, 59,450

Bank Loan (in Rs.)

1, 79,725

Interest rate (% p.a)

12

Repayment period

8 years incl. 1 year grace

In Rupees

Loan O/s
Year

Gross
surplus

Bank
Loan

3
179725
179725
155000
130000
100000
74000
48000
22000

I
II
III
IV
V
VI
VII
VIII

405684
373869
363750
359050
344950
375528
378569

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

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