Six dairy plants in Uttar Pradesh to be given on lease for 10 yrs

In order to guarantee fair prices for Uttar Pradesh’s milk producers and the accessibility of high-quality milk to the public, the state’s government on Wednesday decided to lease out six of the state’s dairy plants for a period of ten years. Officials claim that among the six dairy plants the UP government selected for leasing, some are completely shut down while others are not operating to their full potential.

With this decision by the state government, the strengthening of the PCDF will take place, benefiting the Dairy Federation, semi-government milk processing and marketing institutions, and dairy cooperatives.
The state government has decided to give Gorakhpur, Kanpur, Noida, Prayagraj, Azamgarh and Moradabad dairy plants on lease. While these plants are being leased, their ownership will remain with the PCDF and milk unions.
The lease will only be for their management and operation. The leasing firm will not be able to tamper with the basic structure of the plant.
Currently, the annual turnover for the Gorakhpur plant is 110 crore, Kanpur’s is 325 crore, Noida’s is 438 crore, Prayagraj’s is 65 crore, Azamgarh’s is 11 crore, and Moradabad’s is 110 crore.

The Request for Proposal (RFP) stipulates that the applying companies’ minimum milk handling capacity must equal 50% of the capacity of the plants that are being leased.