The NPDD scheme aims to enhance quality of milk and milk products and increase share of organized milk procurement. The scheme has two components:

Under NPDD, Fund sharing Pattern of Centre & State is as under:

• Component 'A' focuses towards creating/strengthening of infrastructure for quality milk testing equipment as well as primary chilling facilities for State Cooperative Dairy Federations/ District Cooperative Milk Producers’ Union/SHG run private dairy/Milk Producer Companies/Farmer Producer Organisations. The scheme will be implemented across the country for the period of five year from 2021-22 to 2025-26.
• Component 'B' (Dairying Through Cooperatives) provides financial assistance from Japan International Cooperation Agency (JICA) as per project agreement already signed with them. It is an externally aided project, envisaged to be implemented during the period from 2021-22 to 2025-26 on pilot basis in Uttar Pradesh and Bihar initially with the objective of creation of necessary dairy infrastructure for the purpose of providing market linkages for the produce in villages and for strengthening of capacity building of stake-holding institutions from village to State level.