Delhi Milk Scheme in loss

According to the bid document, the agriculture ministry intends to hand over the operations and management of DMS to a profitable and professionally run cooperative dairy federation or other semi-government organization with a proven track record in dairy processing and marketing for an initial period of 30 years and renewable thereafter.

Union agriculture ministry released bid document for the same on Wednesday. 

DMS has piled up losses of nearly Rs 900 crore and just has 6% market share in the capital’s milk market, but it sits on the huge real estate and retail infrastructure in prime areas of Delhi. 

DMS has a milk processing plant of 5 lakh liters of milk per day capacity located in the heart of Delhi and spread over 25 acres. It also has five milk collection and chilling centers plus 566 milk booths located at various places in Delhi and NCR. “It is expected that with the viable operation of DMS, through the appointment of a concessionaire, the financial burden on the government on account of funding losses incurred by DMS would reduce and there shall also be a net gain by way of realized lease rentals. 

The manpower of DMS, at around 700 employees, shall be placed in the ‘surplus pool’ and can be redeployed elsewhere by the government, if they opt not to work for the cooperative or are not selected to work for it. 

It could be picked up by Amul brand owner Gujarat Cooperative Milk Marketing Federation (GCMMF) or other prominent milk cooperatives that have shown interest in it in the past, officials said. 

The government will retain ownership of DMS’ land, buildings, and the brand, but the bid winner will have the right to use these assets and the brand for 30 years and decide the price of the milk product. 

The cooperative can also revamp, modernize, and increase capacity..read more @www. krishijagaran.com