Karnataka milk body plans seven new production units

KMF has plans to raise Rs 160 crore for setting up four 'flexi plants' for providing milk to school-children

The Karnataka Co-operative Milk Producers' Federation (KMF) plans to set up seven production units with an estimated combined investment of Rs 430 crore, a key official said today.

Three powder plants were planned to be put up near Bidadi on the outskirts of Bangalore, in Mysore and the third one at Tumkur or Kolar at a total cost of Rs 270 crore, A S Premanath, MD and CEO of the the apex body in Karnataka representing dairy farmers' cooperatives, told PTI.

"An investment of Rs 90 crore is needed to set up each plant," he said. KMF officials said the move was to avoid expenditure by way of conversion of milk outside the state and to handle 1 million litre per day of milk in these three new conversion plants.

Premanath said the KMF had sought financial support from the state government to set up these plants to the extent possible, with the remaining funds proposed to be raised as loan from the National Dairy Development Board (NDDB).

He said KMF also had to raise Rs 160 crore for setting up four 'flexi plants' for providing milk to school-children. Under the 'Ksheera Bhagya' programme to provide safe and clean milk to school children, 800,000 litre capacity flexi units would be set up in Channarayapatna, Tumkur, Dakshina Kannada and Belgaum, officials said.

Premanath said a milk tetrapack unit would also be set up here with a capacity to handle 150,000 litres per day.

KMF markets milk and milk products under 'Nandini' brand. Milk prices were increased by Rs 2 from September 11 last, officials noted.