Delhi Milk Scheme (DMS), which comes under the Agriculture Ministry, has been running losses for the past several years. As a result, the ministry has moved a cabinet proposal for corporatisation of DMS.
"DMS has processing units and large network of booths. As we have expanded our business in Delhi, we are definitely interested to take DMS assets on rental in case the Centre plans to do so," COMFED Managing Director Harjot Kaur said at the launch of its brand in the national capital region (NCR)
The COMFED, which has a processing capacity of 13.6 lakh litres per day in Bihar, will submit a fresh proposal and negotiate on the DMS issue as and when the Centre decides to corporatise it, she said.
Kaur further said COMFED had earlier received a proposal from DMS for selling 'Sudha' milk and milk products through its outlets in the NCR. "But the deal fell through as DMS wanted to sell under its own brand," she added.
Amul, owned by the the Gujarat Cooperative Milk Marketing Federation (GCMMF), has already submitted a proposal to the Centre for taking over the operations of DMS.
Amul is keen on signing a long-term lease arrangement with DMS because it feels that buying assets worth hundreds of crores of rupees would not be viable even the issues related to employees need to be addressed.
The DMS has milk production and packaging capacity of 5 lakh litres per day, besides a network of 1298 outlets in the NCR. The government-owned dairy unit has 800 employees, but the milk production is only about 2.5 lakh litres per day. (MORE)
