Key Parameters for Setting up a Horse Breeding Farm

Thinking of starting a horse breeding farm?

Whether you’re driven by passion or planning a profitable venture, setting up a successful horse breeding unit requires careful planning, the right environment, and a strong understanding of animal care.

Objectives

The objectives for establishing such an entrepreneurship include:
* Bringing the unorganized horse farming sector into the organized sector.
* Promoting entrepreneurship in the field of equine for sustainable breed improvement.
* Popularizing different indigenous breeds of horses.

Salient Features:

The entrepreneurship aims to establish *Breeder farms with indigenous horse breeds*.
* The *Central Government provides a 50% capital subsidy* for the project cost.
* The subsidy covers costs related to *housing, procurement of breeding animals (including insurance), land preparation for fodder cultivation, and equipment* for establishing the breeder farm.
* The *unit size for horses* eligible for subsidy is *10 mare/broodmare + 2 stallion*.
* *No funding will be allowed for the establishment of breeding farms for thoroughbred horses*; only indigenous breeds are supported.

Eligible Entities

Individuals.
Self Help Groups (SHGs).
Farmers Producer Organizations (FPOs).
Farmers Cooperatives (FCOs).
Joint Liability Groups (JLGs).
Section 8 companies.

Funding Pattern and Subsidy

One-time 50% capital subsidy of the total project cost* will be provided.
The *maximum subsidy is up to ₹50 lakh for each unit*.
Subsidy is capital subsidy* and is provided in *two equal installments.
First installment* is released upfront to the scheduled bank or financial institutions (like NCDC) by SIDBI, to be credited to the Entrepreneur/Eligible Entities’ account *after the bank or financial institution releases the First Installment of loan* to the beneficiary and confirmation by the State Implementing Agency.
Second installment* is released by SIDBI *after completion of the project and certification by the State Implementing Agency.

Essential Requirements of Beneficiaries:

Beyond being an eligible entity, the beneficiaries must also meet criteria specified in para 5.3 of the guidelines, which include:

Having obtained *training, or having trained experts, or sufficient experience* in managing and running the relevant project, or having technical experts with sufficient experience.
Having obtained a *sanctioned loan* for the project from a bank or financial institution, or having furnished a bank guarantee from a scheduled bank along with project appraisal for its validity by the bank.
Having *own land or lease land* where the project will be established (exceptions apply for FPO, FCO, SHG, JLG).
Being able to *run the project for a minimum of three years* after completion.
Having all relevant *KYC documents*
Being capable of providing *minimum 10% of the project cost as margin money.