Comments
The Government has asked the Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul brand, to submit a detailed proposal for taking over operations of loss-making Delhi Milk Scheme (DMS).
DMS, which comes under the Agriculture Ministry, has been running losses for the past several years. The Ministry had moved a Cabinet proposal for corporatisation of DMS.
“The Chairman of GCMMF has written to the Government proposing to take up the operation of DMS. However, GCMMF has been requested to submit a comprehensive and detailed proposal,” Agriculture Minister Sharad Pawar said in a written reply to the Lok Sabha.
The co-operative has to submit the proposal giving details of proposed valuation and monetisation of DMS, pending legal and liabilities, infusion of equity and terms of engagement of employees among others, he added.
Amul is keen on signing a long-term lease arrangement with DMS because it feels buying assets worth hundreds of crores of rupees would not be viable. It also thinks the issues related to employees need to be addressed, too.
Besides Amul, Bihar State Cooperative Milk Producers’ Federation (COMFED) that owns the Sudha brand had also showed interest in acquiring processing and distribution units of the DMS on rental basis.
The DMS has milk production and packaging capacity of five lakh litres a day, besides a network of 1,298 outlets in the NCR. The Government-owned dairy unit has 800 employees, but the milk production is only about 2.5 lakh litres a day.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.