The scheme is specifically designed to support the establishment of self-contained dairy units, with each project centered on the purchase of 25 indigenous cows. As illustrated by the case of beneficiary Indu Singh, the total outlay for such a specialized unit can be substantial, valued at approximately ₹62.55 lakh (around $75,000 USD). This significant capital requirement reflects the commitment to quality herd establishment and modern infrastructure, making the scheme a major financial focal point for dairy unit investment in Northern India.

The critical element mitigating this high entry cost is the provision of an extensive capital subsidy. The state government is offering a substantial 50 percent subsidy on the total project cost, drastically reducing the financial barrier for progressive farmers. In the cited example, this translated to a grant of ₹31.25 lakh, with the financial assistance being disbursed in phases. This direct intervention through dairy subsidies is key to unlocking scalable, professional operations that might otherwise remain inaccessible to individual livestock rearers.

Technological advancement is a core mandate of the ‘Nandini Yojana.’ Dairies established under the program are actively supported with sex-sorted semen-based artificial insemination. This critical measure ensures a higher probability of female calf births, optimizing future herd replacement and expansion potential, and guaranteeing long-term income stability for beneficiaries. Furthermore, the focus on indigenous breeds has proven economically successful, with producers like Indu Singh reporting premium milk sales at ₹100 per liter due to the superior quality of Sahiwal cow milk.