The move comes in the backdrop of "product diversification" and other "value addition activities" by AAVIN to enhance price realisation for milk producers, Jayakumar said, while presenting the budget for financial year 2017-18, here.
"A new Ultra Heat Treatment plant for processing and packing flavoured milk and milkshakes will be established in Madurai with a capacity of 25,000 litres per day at a cost of Rs 40 crore," he said.
He further said AAVIN would also set up 200 new outlets in the financial year 2017-18 in colleges and universities.
The government has alloted Rs 130 crore for the dairy sector in the budget estimate 2017-18, he added.