DETAIL PROJECT REPORT

FOR ESTABLISHMENT OF A LAYER POULTRY ESTATE IN ORISSA

________________________________________________________________________
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 constitutes 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, Panthothenic 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 disguise
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unemployment. Poultry farming can be a viable option for rural poor to overcome the
issue.

3.

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, contact 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 of the people are also
responsible for spectacular 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 need 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, Orissa has
been identified as a suitable destination for setting of poultry units. The Agro climatic
condition of Orissa 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 Orissa during last 5 years. The
egg availability per year per head in Orissa 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 Orissa is 36.7 million (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 was responsible for accepting eggs
as a nutritious item in the diet. Poultry products like egg and chicken constitute a primary
source of animal protein. In this context it is desirable to enhance egg production in the
State.
The Govt. of Orissa 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 industry is enormous. The growth in Poultry
industry will help in development of a number of supporting and allied industries like
compound feed manufacturing, equipment and machinery, pharmaceuticals &
biologicals.
The Department of Fisheries & ARD 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 Orissa
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, Orissa, 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 duckery 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 Orissa has taken the following initiatives:

The Govt. of Orissa has been 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 Orissa Government Land

Settlement Act vide schedule-II of OGLS Rules.

Financing Institutions 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 upto 25 lakhs is
being granted under Agriculture Policy 2008 by APICOL for promotion of
poultry sector.

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..

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 CSP 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 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 DLRDS/ Joint Director, Chipilima account for purchase of
hatching eggs, day old parent chicks, feed, medicine and transportation charges etc. The
revolving fund should effectively be utilized to make this operation as self sustaining. All
the Farm Managers have been delegated with them sufficient financial and administrative
powers to implement the scheme.
Sl.
no.

Name of the Farm

1
2
3
4
5
6
7

Year of
Area
Approved
Enhanced
Present Bird
Estb. (In Acres) strength Strength with
Strength
CSP assistance

Status at Present

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

1938
1966
1964
1977
1966
1957
1942

32.94
5.00
18.00
3.05
5.00
9.00
48.60

1500
1000
1500
1000
1000
500
3000

4000
4000
4000
4000
4000
4000
4000

823
881
1128
1873
1083
2400

Functioning
Functioning
Functioning
Functioning
Functioning
Not Functioning
Functioning

8 DPF Bhanjnagar
9 SPU Chipilima
10 DBF Chipilima

1961
1966
1990

3.00
2.00
6.00

500
500
250

4000
4000
4000

1620
954
-

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
Up to10/09

2709
2468
3663
2656
10588
13,510

1.66
1.77
1.94
2.83
2.33
3.60

0.55
0.51
0.91
1.90
4.56
3.90

0.43
0.38
0.75
1.05
2.81
2.006

8.72
10.33
13.12
17.25
43.89
31.17

A Project proposal for establishment of a layer poultry Estate in the State has been
accordingly prepared.
5.

VISION FOR POULTRY DEVELOPMENT

5.1.1

The Govt. of Indias scheme to establish a Layer Poultry Estate will attract the
small/marginal farmers to set up commercial layer in the estate to enhance egg
production in the State.

5.1.2

Orissa 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 linkage.
5.2.3

Promoting backyard dual purpose small poultry units along with Chick rearing
Unit 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.
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5.3. GOAL:
Increase commercial egg production from 22 lakh to 59 lakh eggs per day
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 constitutes 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, Riboflabin, 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:
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.
With assistance from Govt. of India, one Layer Poultry Estate is to be established
in the State by inducting 2.00 lakh layer birds involving 100 nos. of small poultry farmers
with 2,000 layer birds each in a compact patch of land under close supervision of the
experts.
6.

FEATURES OF THE LAYER POULTRY ESTATE:

6.1.

The Layer Poultry Estate will have establishments of small farmers who

will organize and form societies-thus accruing both, benefits of economics of scale and
achieve better market opportunities with promotion of quality products, instilling
confidence in consumers. Creation of estates is primarily envisaged on line of other
industrial estates where majority of facilities will be made available within an area to
facilitate both backward and forward linkages. As far as the layer Poultry Estate is
concerned, State Government will provide facilities in terms of land on lease,
development of estate area, electricity and water supply, training, common facilities like
feed mixing, storage, etc. Entrepreneurs who will set up either layer or broiler units in
these estates will be assisted with interest free loan provided they adopt scientific
production methods.
6.2.

Identification and allotment of Land:

A Patch of Govt. land measuring 25 Acres is to be identified in the district of

Mayurbhanj, where 100 nos. of Poultry Layer small farmers have been decided to be
selected. The land will be taken from the Govt. on lease basis for establishment of the
Poultry Estate, small farmers who will set up their layer units. The land will be selected
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keeping in view factors like distance from water bodies, away from existing farms,
migratory birds flying route, etc.
6.3.

The necessary steps will be taken by the State Government to constitute a State

Level Sanction and Monitoring Committee (SLSMC) headed by Principal Secretary,

Fisheries & Animal Resources Development Department of the State and keeping
representative from DADF, NABARD, leading bank, State Animal Husbandry
Department and APICOL.
6.4. Fencing:
The part of land meant for poultry sheds will be provided with fencing with 5 line
barbed wire. The length of fencing will have to cover the sides which are vulnerable for
animal and human entry. Since the forest lands are nearby, it is essential to prevent stray
animals from coming in. Entry of persons has to be restricted. In the entrance a provision
for foot bath for farmers and visitors should be a must. There should be only one entrance
gate made of iron. Every vehicle bringing feed and medicine has to be disinfected before
entering into the estate.
6.5. Provision of road and leveling of land:
The estate will be provided with all weather road communication for
transportation of building materials, feed ingredients, medicines and vaccines to the
estate and eggs, empty gunny bags, and garbage from the estate. The land inside the
estate will be leveled for construction of poultry sheds, feed plant, office, store and rest
room. The expenditure for the purpose will be met from the funds available for
infrastructure development by Govt. of India.
6.6.

Electricity connection:
Electricity is an essential component for poultry farming as it is required for

brooding of chicks, running of feed mill and pumps used for water supply as well as
lighting of the estate area. For this deposit is to be made Electricity Board for erecting of
poles, control panel and establishment of Transformer. The expenditure incurred for
Electricity connection from the existing sources will be met from funds provided by
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Govt. of India & the expenditure made for electricity connection inside the Estate will be
provisioned in the Project Report.
6.7.

Water supply:
Like Electricity & Feed, provision of clean drinking water is another essential

component of a Poultry Project, digging of required numbers of bore wells inside Poultry
Estate will be made from the funds available from the Govt. Of India for infrastructure
development but provision of funds for construction of over head tanks, inside pipe line
connections with nipple watering system has been made in the Project Report.
6.8.

Provision of Feed Plant:

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 captive feed plant is to be
established inside the Estate area with an amount of Rs. 25.00 lakh available from Govt.
of India as 50% grant.
6.9.

Store rooms for vaccines, medicines & disease Investigation Lab.:

A store room for medicines and vaccines has been provisioned in the project

Report. The help of the District Diagnostic Laboratory functioning at the District Hqr.
Veterinary Dispensary will be availed at the time of the need of the proposed Layer
Poultry Estate.
6.10.

Waste Disposal:
Bio-security measure is an important aspect for a Poultry farm which will be

meticulously maintained inside the Estate. For the purpose all the waste materials
produced are to be scientifically disposed so that it doesnt create any heath hazards for
the surroundings. There will be provision of a Waste Disposal pit situated at one corner
of the Estate for disposal of the dead birds & waste materials.

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7.

IMPLEMENTATION:

7.1.

Identification and allotment of land for Estate:

At the initial stage 25 Acres of Govt. land has to be identified in Mayurbhanj District
and is to be allotted to the Layer Poultry Estate on lease basis.
7.2.

Identification of Entrepreneurs (small farmers):

One hundred nos. of interested small farmers will be identified in Mayurbhanj

District to be the members of the Layer Poultry Estate. Women and SC, ST farmers will
be given priority.

Out of this 100 entrepreneurs 10 nos. of groups will be made comprising

10 entrepreneurs in each group.

Women and SC, ST groups will be given most priority.

These groups are formed to provide them 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 excluding cost of land maximum
up to 25 lakhs in addition to Rs.3.00 lakh as interest free loan for each individual
entrepreneur.

As per the guidelines laid by Govt. of India for Poultry Estate one group
will rear 10 x 2000 = 20,000 layer birds and accordingly the project report has been
prepared. Thus ten numbers such groups will rear 2,00,000 layer poultry birds inside
the Layer Poultry Estate.

As the total project cost for a group is Rs.93.85 lakhs, 10% margin money
i.e.Rs.9.385 lakhs is to be deposited with the financing Bank by the group for availing
term loan against the project, out of which Rs.30.00 lakhs is the IFL grant by GOI.
Annexed at -I

7.3.

Identification of facilitator:
For the present Orissa Livestock Resources Development Society (OLRDS) will

act as the facilitator. The Chief Executive Officer / Officer-in-charge, OLRDS will act as
the Project Co-coordinator who will keep liasioning with Govt. Departments, NABARD,
Banks, entrepreneurs, APICOL and Eastern Hatcheries Pvt. Ltd., Bhubaneswar will
11

supply day-old-layer chicks for the project and will provide necessary technical guidance
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, OLRDS,

the State 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.200 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 facilitator if do deviate the guidelines or act
against the interest of the beneficiaries.
7.5.

Training of the entrepreneurs:

OLRDS in consultation with the SLSMC will arrange the experts and conduct

training programme of the entrepreneurs on scientific layer farming. The training

programme should be of 15 days duration which would include housing, management
and feeding practices of layer birds and it is to be organized at Block Head Quarter nearer
to the villages of the small farmers of the estate. There should be at least 3-4 field
exposure visits during the training period.
I. 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.200 lakh per estate as grant.
3. Selection and Training of 100 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 on grant.
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DETAIL PROJECT PROPOSAL

FOR
ESTABLISHMENT
OF

LAYER POULTRY ESTATE

IN
ORISSA

13

DEPARTMENT OF FISHERIES & ANIMAL RESOURCES DEVELOPMENT,

GOVERNMENT OF ORISSA.

14