Delhi govt rejects Centre's offer on milk scheme

The Delhi government on Monday rejected the Centre's offer to transfer Delhi Milk Supply to the state government.

Thus, the state government has accepted the National Dairy Development Board's (NDDB's) suggestions on loss-making Delhi Milk Scheme.

Given the Centre's offer of transferring the Delhi Milk Scheme to the Delhi government, the NDDB had advised the Delhi governmment to refuse because it has no experience of running a dairy unit.

Instead, the NDDB had suggested the transfer or sale of the Delhi Milk Scheme to the Mother Dairy Fruits and Vegetables Ltd, a wholly-owned subsidiary of the NDDB, but without the Delhi Milk Scheme's surplus staff, which should be absorbed in other government departments.

These recommendations were made in the report sought by the Delhi government on making the Delhi Milk Scheme viable. The Delhi government had wanted this aspect to be studied before the final decision was taken on taking over this unit.

The NDDB's report states the Delhi Milk Scheme should not be run as a department of either the Centre or the Delhi government.

"If the milk supply is to operate as a viable self-sustaining unit, a strategic change in its ownership is vital and its assets should be transferred or sold to the Mother Dairy Fruits and Vegetables Ltd," the report says.

The Delhi government was, in any case, reluctant to take over the Delhi Milk Scheme because of the latter being loss-making. In view of this, the animal husbandry department of the Union agriculture ministry has initiated measures to corporatise the Delhi Milk Scheme under the Companies Act.

The Planning Commission has been supporting the Delhi Milk Scheme with plan as well as non-plan assistance. It has provided Rs 1 crore this fiscal.

The parliamentary standing committee on agriculture's third report""tabled in both Houses in the just concluded parliamentary session""says the finance ministry gave an additional budgetary support of Rs 20 crore to the Delhi Milk Scheme to make up for some of its losses.

In 2003-04, the Delhi Milk Scheme could realise only Rs 162.63 crore, against the non-plan expenditure of Rs 206.90 crore.

The parliamentary panel has asked the agriculture ministry to take a quick decision on Delhi Milk Scheme.

The NDDB report pointed out the Delhi Milk Scheme has 1,068 surplus employees who need to be absorbed or deployed in other government departments before it can be transferred or sold. Besides, the Mother Dairy Fruits and Vegetables Ltd should have the say in selecting 800 employees who will continue to work with the milk scheme in the new dispensation.