The revived state dairy at Burdwan will reopen following merger with Mother Dairy.
"The revival of the dairy will costs the government about Rs 5.75 crore," Animal Resources Development Minister Swapan Debnath said inaugurating a Mother Dairy outlet close to the new state secretariat 'Nabanna' here in Howrah district.
The state dairy with 85 employees was closed since May 20, 2004.
The dairy would resume production with 5,000 packets daily, when it was 20,000 packets per day when it closed.
The Mother Dairy, which incurred a loss of about Rs 1.5 crore in 2010, earned a profit of Rs 7 crore last year, Debnath said.
The plan for government approval for handing over the dairy to resume operation on management and utilisation of assets basis was cleared by the cabinet after the cabinet sub-committee for industry and infrastructure looked into it.
Speaking about hike in milk price by the Metro Dairy, a public-private partnership company, the minister said the price was hiked by Rs 2 per litre without consent from the state government, which owned 40 per cent stake in the company.
"Metro Dairy should immediately bring down the price of milk," Debnath said.
