COMMUNITY BASED, DAIRY DEVELOPMENT

IN
PANCHMAHAL DISTRICT.
(GUJARAT STATE)

PROJECT PROPOSAL FOR FINANCIAL

ASSISTANCE

PROJECT NAME
BALANCED CATTLE FEED
MANUFACTURING PLANT ( 100 MTD )

UNDER

SGSY
CONCEPTS

PREPARED BY :

PANCHMAHAL DISTRICT COOPERATIVE MILK

PRODUCERS' UNION LTD. GODHRA-389001
DIST. PANCHMAHALS (GUJARAT)

SUBMITTED TO :

RURAL DEVELOPMENT DEPARTMENT

GOVT. OF GUJARAT, GANDHINAGAR
GOVT. OF INDIA, NEW DELHI.
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THE PANCHMAHAL DISTRICT CO-OPERATIVE MILK
PRODUCERS' UNION LTD., GODHRA
I N D E X
Sr. No. Particulars Page No.
1. Name of the Project 8
2. Conceptual Background 8
3. Project Objectives 9
4. Strategy 9
5. Project Period & Action Plan 10
6. Area of Project / Area Profile 11-14
Details
7. Key Activities 15
8. Beneficiaries Detail 16--96
9. Implementing Agency Role 97
10. Role of Line Departments / NGO / 97
PRF
11. Benchmark Surveys 97
12 Integration with on going Rural 98
Development Program
13 Raw material Supply 98
14. Technical Know-How 99
15. Training Component 99-101
16. Marketing Arrangement 99
17. Infrastructure Development & Cost 102-112
Estimate Details of Cattle Feed
Plant
18. Benefits / Impacts 102
19 Risk Factors 102
20 Modalities to Minimize Risks 102
21. Criteria for Monitoring & evaluation 102
of the project
22 & State Commitment to match the 103-105
23 Share of project
24 Technical Scrutiny & Feasibility 101
25 Economic Appraisal of the Project 106
26. Estimated Cost Summery 106
27. Repayment Schedule 107
28. District Governing Body Resolution 108-110
Copies
29 Milk Union's Progress Five Years 111
30 Technical Input Activities Progress 112
Details
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 RECOMMENDATION FROM DISTRICT RURAL
DEVELOPMENT AGENCY GODHRA.
DISTRICT PANCHMAHALS. (GUJARAT STATE)

Panchmahal District Coop Milk Producers' Union Ltd., Godhra

was established in may 1973. The Milk shed has human
population of 29.43 lakh of which 26.43 is rural population and
3.25 lakh has been classified as urban population. The Milk
shed has 1908 inhabited villages distributed in 18 talukas.
Around 42 % of the total population are of tribal.

As on Today the union has, 1405 organized dairy cooperatives

with liquid milk processing capacity of 200 TLPD. Milk drying
capacity of 18 MTD and Ghee manufacturing capacity of 10
MTD. The union has only one chilling center at Chopada, Ta.
Lunawada with the capacity to handled 0.5 LLPD.

Initially the neighboring district milk unions of Kaira, Sabar

and Baroda helped to organize the dairy cooperatives and the
entire activities of milk procurement was handled by these
unions. In 1979 The Panchmahal Milk Union started its
activities independently at Godhra with help of GDDC. The
union was included under NDDB’s OF-II programme in the
year March 1982 and GDDC handed over the operations to
the union in 1983. The Milk Union got affiliated to the
G.C.M.M.F. Ltd., Anand on 1st April 1984.

Cattle feed is a vital component of the total package of

technical inputs directly related to the enhancement and
sustenance of milk yield in milch animals. While the feed
given to a milch animal is essential for maintenance, growth,
production and reproduction, it is equally important to ensure
that a balanced feed is given. Cattle feed comprises of the
essential proteins, fats and vital minerals in a balanced
proportion, sustenance required by the animal to increase milk
production level. This is a unique feature of this product. At
the same time cattle feed is said to bring about reduction in
the overall feed expenses that a farmer would incur with
respect to the other traditional feed concentrates.

Panchmahal District is comprising of 2,22,493 BPL families,

this consist of 12,051 schedule cast BPL families, 72,052
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schedule tribe BPL families, 11,793 women BPL families, 1807
physically handicapped families, 44,770 small farmers,
1,27,329 marginal farmer, 10,385 rural artisan, 35,646
agricultural labors and 4053 are falling in other categories of
BPL families. These all BPL families more or less are engaged
in milk co.operative dairying in Panchmahal District. About
1,01,547 BPL families are affiliated with milk co-operative
business, and are required to be trained in dairy co-operative
business.

• The total animal population of Panchmahal District is about

3.60 lakhs (Breedable that includes indigenous cows,
Buffaloes and cross breed cows). At 60 % of Breeding
efficiency and milking nature.

• The average total milk procurement is 2.20 lakhs/day Milk

Production is 4.5 L/day) if 400 gm cattle feed is given for
every lit of milk procured we may need 0.88 lakh kg. of
cattle feed per day.

Looking to the breedable animal milch population in

Panchmahal District, there are actual need of more than 100
MTS of cattle feed/day This project would definitely help to
uplift social status of rural milk producers and to improve their
economical condition. Technically, the project seems to be
feasible and viable, in the district.

The total outlay of the project is Rs. 11.13 crores, from

which Panchmahal Milk Union are in need of financial
assistance of Rs. 7.79 crores (financial assistance includes
Rs 3.34 crore for establishment of cattle feed manufacturing
plant, and 100 % grant towards establishment of training
infrastructure. Research and development facilities and to train
100 % BPL families in dairy co-operative business) Rs. 3.34
crores would be provided by district co-operative Bank as
credit loan @ of 12 % interest.

Being a community Dairy Development activity at large

scale, we expect to have financial assistance of Rs. 7.79 crores
from Rural Development Department under SGSY concept
under special innovative project.

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 Hence, it is recommended to provide financial assistance
towards the establishment of cattle feed factory in Panchmahal
District under SGSY concept.

( Dr. R. S. Patel ) DIRECTOR (J. P. Gupta)

Managing Director DRDA CHAIRMAN
PANCHMAHAL DAIRY, GODHRA DRDA & D.D.O.
GODHRA. GODHRA.

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1. NAME OF THE PROJECT :

Establishment of Cattle Feed Manufacturing Plant, having

capacity of 100 MTD in Panchmahal District.

2. CONCEPTUAL BACKGROUND :

INTRODUCTION AND DISTRICT PROFILE

Panchmahal District Coop Milk Producers' Union Ltd.,

Godhra was established in may 1973. The Milk shed has
human population of 29.43 lakh of which 26.43 is rural
population and 3.25 lakh has been classified as urban
population. The Milk shed has 1908 inhabited villages
distributed in 18 talukas. Around 42 % of the total
population are of tribal.

Initially the neighbouring district milk union of Kaira,

Sabar & Baroda helped to organize the dairy co-operative
and the entire evening of milk procurement was handled
by these unions. In 1979, The Panchmahal Milk union
started its activities independently at Godhra with the help
of FDDC. The union was included under OF-II 1982 and
GDDC handed over the operations to the union in 1983.
Union got affiliated to the G. C. M. M. F. Ltd., Anand on 1st
April 1984.

As on Today the union has, 1405 organized dairy

cooperatives with liquid milk processing capacity of 200
TLPD. Milk drying capacity of 18 MTD and Ghee
manufacturing capacity of 10 MTD. The union has only
one chilling center at Chopada Ta. Lunawada with the
capacity to handled 0.5 LLPD.

The Annual Turnover was Rs. 108 Crores at the end of

31st March 2000.

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The milk procurement of the union is growing rapidly at
the rate of 10% per year. And is expected to cross peak
procurement of 400 LLPD during 2002-03, Keeping in view
the above facts, the Panchmahal Milk Union have planned
to extend its existing milk processing capacity of plants to
4.0 LLPD continuous butter making capacity to 10 MTD
and the Ghee making capacity of 14 MTD. The union has
also planned to expand the existing chilling center
processing capacity from 0.5 LLPD to 2.0 LLPD and set up
one more chilling center at Limdi with financial assistance
from Govt. of Gujarat having processing capacities of 30
TLPD, respectively.

The District nature, attributes and the use of a product

determines largely the market for the product. Cattle
Feed, a product developed for increasing the milk
production capacity of milch animals is demanded by a
specific consumer segment i. e. the rural farmers, which
makes it rural product.

Cattle feed is a vital component of the total package of

technical inputs directly related to the enhancement and
sustenance of milk yield in milch animals. While the feed
given to a milch animal is essential for maintenance,
growth, production and reproduction, it is equally
important to ensure that a balanced feed is given. Cattle
feed comprises of the essential proteins, fats and vital
minerals in a balanced proportion, sustenance required by
the animal to increase milk production level. This is a
unique feature of this product. At the same time cattle
feed is said to bring about reduction in the overall feed
expenses that a farmer would incur with respect to the
other traditional feed concentrates.

In the overall management of a milch animal, the feed

administered constitutes a maximum portion of the total
cost incurred by the farmers. Saving in feed cost on
administering cattle feed would augment the income
derived from milk production and it is here that the
concept of an economical and balanced feed for cattle
derives its significance.
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We are going to invest more than Rs. 40 Crores in
aforesaid Dairy Plant expansion activities. In such
circumstances, being a community dairy development
activities helping mainly to BPL families at large scale we
expect, to have 50% financial assistance from Rural
Development Department, to erect 100 MTD cattle feed
manufacturing plant at Godhra., and 100% grants to
establish training facilities, to train more than 100000 BPL
families.

Panchmahal District population consist of tribals, BPL

families, small and marginal milk producers. Though cattle
feed manufacturing plant, the Panchmahal Milk Union
would able to provide balanced cattle feed to enhance
animal productivity, that would help in their income
generation, and would bring self sufficient economy.

3. PROJECT OBJECTIVES :

Panchmahal District consist of 11 Talukas, there are

3,18,224 Rural Families, from which 2,22,493 (70%) are
recognized as BPL Families in the District. There are
12051 SC Members, 72052 ST Members, 11973 Women,
1807 Physically handicapped, 44,770 Small Farmers,
12,27,329 Marginal Farmers, 10,685 Rural Artisans,
35,646 Agricultural Labour & 4063 Others.

Out of total 70% BPL families 1,65,000 BPL families are

engaged in milk business, they are all affiliated with
primary village milk co-operative society. Milk business is
the duly tool, for BPL families to earn from dairy business
and to survive.

At present they are hardly earning Rs. 700-1000/ month

through milk business. After establishment and production
of Balanced Cattle Feed, these families would easily get
cattle feed, they would be able to increase their animal
milk productivity to earn more income. These would help
to uplift their economic status by earning Rs. 2500/- to
3000/- month
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Project would also keep intact the interest of tribal BPL
families in milk business, these would definitely help in
minimization of tribal people migration.

• Panchmahal Milk Union is going to erect, the cattle

feed manufacturing plant, having production capacity
to 100 MTD, to fulfill following major objectives.
• For intense training programmes to BPL families, it is
suggested to create training facilities on 100% grants
basis.
• To improve the existing animal breeding practices
prevailing in the district.
• To increase animal milk productivity by providing
Balanced Cattle Feed
• To ensure, regular supply of economically Balanced
Cattle Feed at " NO PROFIT NO LOSS " basis,
through out the year.
• To improve the general health of animals by
incorporating some of the important minerals and
medicines
• To uplift rural economy, by encouraging Animal
Husbandry Practices.
• To bring out the awareness and perception about the
use and benefits of cattle feed among the consumers
/ milk producers, and mainly BPL Families involved in
milk co-operative business.
• To promote the cattle feed marketing at large scale
to rural porous, so that the small and marginal
farmers, tribal milk producers can gain more income
through co-operative dairying.

4. STRATEGY
• The total animal population of Panchmahal and Dahod
District is more than 5.60 lakhs (Breedable that
includes indigenous cows, Buffaloes and cross breed
cows).
• At 60 % of Breeding efficiency and milking nature.
• The average total milk production is 2.20 lakhs/day if
400 gm cattle feed is given for every lit of milk produce
we may need 0.88 lakh kg. of cattle feed per day .
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• At present there is no direct source of getting balanced
cattle feed, within the district, rural milk producers are
forced to pay higher prices for poor quality cattle feeds.
• Considering the to geography, will geographical tracts,
limited rain fall. Repeated draughts, and poor
economic condition of rural and tribal milk producers,
the cattle feed manufacturing plant is the prime need
of present crisis. Project would full fill to meet the
narrated objectives.
• Project work would be periodically monitored by a
committee that includes
- N.D.D.B. Representative
- District Development Office
- Project Administrator-TASP, Dahod
- Director, DRDA
- Dy. Director (AH)
- Managing Director, of the Milk Union
- Representative from Rural Development
Dept. Govt. of Gujarat

5. PROJECT PERIOD AND ACTION PLAN

1ST Year : Purchase of land, Leveling of land and

major civil works.
2ND Year : Purchase of machineries and its
installation
Note :
(1) 100 MT/Day cattle feed manufacturing plant would
be completed within two years of its approval.
(2) The total project work would be given to National
Dairy Development Board, on "Turnkey" basis, to
complete the work in stipulated time.
(3) The training programme for BPL families and training
infrastructure facility would be completed within 5
year of time in which every year we would cover
20000 number of BPL families in Panchmahal
District. Totally more than 1,00,000 of families would
be benefited by intensive training programme.

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6. Area of the Project
AREA PROFILE
Natural Resources
Panchmahal and Dahod are economically most backward
districts of Gujarat State. It is also not endowed with
superior quality of natural resource like soil and animals
and with adequate quantity of natural resources like
rainfall and forest area. The district has undulating to
geography and hard rocky terrain (with altitude varying
from 75m to 300m) with shallow medium black soil having
low fertility. Soil depths vary from just a few cm. To 60
cm. In most areas. Animals in the region are again not
economically very productive because they are of
traditional breed having poor health. Nine out of the 18
talukas from the districts are drought prone. In the
remaining. Talukas also, the rainfall pattern fluctuates
widely. Large temporal variability of rainfall combined
with undulating to geography and hard rock terrain
resulting in high run seasons even in a so-called normal
year. The forest cover of the land in Panchmahals is also
depleting very rapidly although the official statistics on
land-use pattern in both the districts, may not reveal the
true story.
POPULATION
The total population of the district is likely to be around 29
lakhs. About 11% live in the urban areas and the remaining in the
rural areas. Thus, both the districts are predominantly rural in
character. Moreover, the proportion of scheduled tribe population
of the Dahod district is more than 70 % and that of Panchmahal is
more than 15 % Based on population, talukas, Viz. Dahod,
Limkheda, Zalod, D. Baria, Dhanpur, Kadana, Fatepura,
Ghoghamba, Morva (h) and Santrampur, are identified as
predominantly tribal in character. A special development program
called Tribal Sub-plan covers these talukas. The overall literacy
rate in the district is only 28 % as against the state average of 44
%. 90 % of the total population lives below poverty line. The tribal
talukas have distinctly lower overall literacy rate (22%) and
particularly so among females (11%). This has a serious
implication on the ability of and the ease with which the population
relates itself to its surrounding, gets information, perceives
opportunities and analyses alternatives.
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Agriculture : Risk and Uncertainty

The main occupation in both the districts and each of the

talukas is agriculture As can be readily seen, the
proportion of total worker engaged in agriculture is as
high as 82 % in Panchmahal and Dahod as against 60 %
in the state. In the tribal talukas, the proportion is even
higher in 88 %. Moreover, it is important to note that
while the proportion of cultivators is distinctly higher in
Panchmahal as compared to the state average, the
proportion of agriculture labour is distinctly less in the
district. This implies on the one hand that the lane is more
equitably distributed with lower average size of holding,
and on the other hand a majority of the labor force on
some land in the district. Irrigation facility available at
present is very meager in the district, and the potential is
also low. This coupled with inferior quality of soil and
fluctuating rainfall leads to low and highly fluctuating
agricultural productivity in the district. Viz. Maize, paddy,
wheat, gram, pulses, cotton and groundnut..

The most promising crops for both the districts are pulses
because of its higher mean yield and lower variability
compared to the state. The other Six crops show higher
temporal variability in yield compared to the state. The
only saving grace seems to be maize, cotton and gram
where the mean yield is marginally higher than the state.

Small holding coupled with fluctuating agricultural

productivity imply low per capita income it high variance
over time. In such circumstances, farmers are induced to
choose food crops over non-food crops. About 88 % of
the gross sown area in the district is under the food
crops. Maize, Wheat, Rice, Pulses and Ground nut account
for more than 80 % of the area. Because of all these
characteristics, agricultural production in the district is
predominantly for self-consumption rather than for the
market. Out estimates for self-consumption. Market are
for maize 80:20. Pulses, gram and cotton are the major
source of cash income for the farmers in the district.
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Employment and Asset Holding
Since irrigation facilities and rainfall are not adequate in
the district, the cropping intensity is very low in both the
districts. Agriculture cannot provide sustained
employment to the population through out the year. Even
during the agricultural season, employment generation in
agriculture is not sufficient on account of small size of land
holding. Real income generation in agriculture is of course
low. However, for majority of the population in the rural
areas of the district, land is an important asset and their
ownership of land, although negligible in absolute terms,
makes them emotionally attached to the place.
Other family assets of the rural population is animals only.
The total number of cows, buffaloes in the districts, is
sufficient in number to provided productive supplements
source of incomes and employment in the districts. It
only points to the potential of these activities in the region
because rightness the animals are kept in the district
largely for direct consumption purposes. A large
proportion of the population in the district is non-
vegetarian. Culturally, therefore, animal husbandry
should not have any problems of acceptance in this
region. Due to this fact only the cooperative dairying is
remarkable growing at faster rate.
Urbanization
The urban areas in the district are not very well developed
particularly from the angle of labour absorption. These
urban centres are largely based on trading activities in the
better off talukas like Halol and Kalol. The expansion of
the industrial activities is confined along the Baroda-
Godhra-Dahod-Delhi highway. It will still take a long time
before the industrial activities spreads to a sizeable extent
in the district. Currently, its capacity to absorb surplus
agricultural labour in the district is relatively negligible.
However. It should be noted that the main need of the
district is not to substitute agricultural employment but to
complement it with income augmenting supplementary
activities, which can sustain the population through out
the year.
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Income and Poverty
With agriculture, the predominant activity in the district,
confined largely to only one season yielding low and
fluctuating income to the farmers, the poverty and under
employment (also distinguished as unemployment) are
widespread serious of the district. Studies carried out in
the seventies revealed, the proportion of people living
below the poverty line in the rural areas in the district was
around 90 % Because of the attachment of the farmers to
their small land and animal holding, the unemployment in
the district takes the form of seasonal unemployment in
the off season and under employment in the agricultural
season. The geographic specificity of labour force
introduces a peculiar element of imperfection in the labour
market. It acts as a strong barrier on long term mobility
of labour-both vertical and horizontal. Skill formation,
too is, therefore, not encouraged. Literacy also remains
low. Average wage rate also remains depressed in the
district as compared to other district.
Seasonal Migration
Seasonal migration out of the district in search of informal
and temporary employment is rampant. Around three
person per every two family is Laboured from
Panchmahals and Dahod gets absorbed in agriculture,
building construction and road construction activities
outside the district. They get employment on an average
for 180 to 200 days in a year. They get an average wage
rate of about Rs. 30 to Rs. 50 per person /day of
employment out of which they have to meet their local
expenses and sometimes even the real cost. They are
away from the district on an average for about 6 to 8
months in a year during the agriculturally lean season and
return to the district in the agricultural season. Where as
such migration provided obvious benefits in terms of
incomes, employment, exposure to modern techniques of
production and different lifestyles, it has severe
damaging effect on the production and social life at home,
literacy, skill acquisition and other forms of investment in
human capital suffers.
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The migrant farmer tends to neglect his agriculture and
related activities. In the discussions with officials in the
government and other organization in the district, this
factor repeatedly came to the fore as the main problem
and also the main constraint for successful
implementation of the traditional development efforts in
agricultural production, employment in rural industries,
etc. in the district.

Comparison of Tribal and Non-Tribal Regions

In Panchmahal and Dahod, the population are distinctly

split into the tribal and non-tribal talukas. The tribal
talukas are also the drought prone talukas. There are
differences between the tribals and non-tribal talukas of
the district in terms of certain demographic, natural
resource and cropping pattern characteristics.. Where as
the socio-demographic parameters show sharp differences
in respect of economic activities, particularly agriculture,
the differences are differences are not striking. This
implies that for all practical economic planning purposes,
the district could be treated as a single entity.

Concluding Remarks

From the area profile presented above, it becomes clear

that Panchmahal and Dahod district are in general and the
tribal belt in particular represent a case of regional
economy trapped in the low-income equilibrium. The
economy is caught in deep-rooted vicious of poverty
giving rise to underemployment and seasonal migration.
The champions of the cause of the Panchmahal and Dahod
tribals feel strongly that the seasonal migration of the
tribals is on account of the "Push Factors" of destitution
and lack of employment and incomes earning
opportunities at home rather than on account of the
"Push Factor" of the basic attraction of the environment
at the destination.

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It supplementary income and employment generating
activities are encouraged in the area on an appropriate
scale, the seasonal on account of the "Push Factors" can
be checked. The scale of activities could be decided by
considering the fact that they should be capable of
generating at least Rs. 3000 to 4000 of the total annual
incomes per family. What is required is a massive effort
(more than a "critical minimum effort", to provide a
big push to the economy in terms of institution creating
and strengthening existing cooperative net work. The
development strategy for the district need not differenable
the tribal and non-tribal regions. However, since in
reality, we have special programmes for tribals, in the
development strategy formulation, we may build in
district components/programmes for the tribal as well as
non-tribal regions. Some programmes/schemes could cut
across the regions. We strongly feel that through animal
husbandry we can improve the socio-economical condition
of these tribal population.

-Majority of the rural people in Panchmahal and Dahod

Districts are engaged in cooperative Dairying more
than 1395 rural villages are brought under cooperative
network. Cattle feed is the major input, to enhance
the animal milk productivity.

• Increase in the milk production / would decrease the

cost of milk production, that would help the milk
producers to generate more income.
• Panchmahal District is having totally 2,22,403 BPL
families, out of which 1,01,547 BPL families
• People migration would be minimized in the district.
Project would bring remarkable Eco-social upliftment in
Panchmahal and Dahod District through cooperative
Dairying.

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7. KEY ACTIVITIES

• Bring about intense awareness and perception of about

the use and of Benefits of cattle feed, among the rural
and tribal milk producers, by organizing series of
extension programs.

• Understand the existing feeding practices prevalent,

and to train the rural people, to adopt modern scientific
animal feeding practices.

• High Milk production at low cost by providing balanced

cattle feed, at "No Profit No Loss" basis.

• Improving cattle feed Marketing strategy and

encouraging the rural milk producers towards the high
and regular use of cattle feed.

• Milk union, would also channels the animal health

activities viz. Regular dowering of animals, vaccination
to protect animals against infections, diseases to
sustain animal milk production.

• Focus would be made on purchase of quality raw

material to produce high quality balanced cattle feed.

• Regional cattle feed storage facility would be created,

to facilitate easy and prompt, regular supply of cattle
feed.

8. BENEFICIRIES DETAILS

Panchmahal Milk Union have established 1395 primary

village level milk cooperative, by covering more than
1,74,000 rural poors membership includes, tribal, small
and marginal farmers, landless labours, scheduled caste,
minority milk producers etc. Details are as follows.

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Sr. Particulars 95-96 96- 97- 98- 99-00
No. 97 98 99
1. No. of cooperative 1188 1249 129 136 1395
Organized 5 5
2. No. of Milk producer 135 136 150 170 174
member ('000)
3. Landless members 42 43 46 53 54
('000)
4. Small and marginal 70 70 78 88 90
farmers ('000)
5. Families Slight 20 20 22 24 24
higher Poverty line
('000)

6. Schedule cast and 3 3 4 5 6

minority cast ('000)

Looking to the table above it is very clear that majority of

the rural backward class people are engaged in milk
cooperative dairying.

Thus, the establishment of cattle feed project, would

definitely help rural milk producers to uplift their social
status and economical level too.

9. IMPLEMENTING AGENCY ROLE

On behalf of State Government The District Rural

Development Agency, would take care of releasing the
allocated and approved fund under the SGSY project,
specially meant for cattle feed manufacturing plant.

DRDA, Panchmahal, would also take care, the

monitoring of work progress, under approved SGSY
project, District Level Monitoring committee, would
provide periodically progress report to state Rural
Development Authority. The Panchmahal District
Cooperative Milk Producers' Union Ltd., Godhra, would
successfully implement the project within two years of
its approval.
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10. ROLE OF LINE DEPARTMENTS/NGOS/PRIS

The Panchmahal District Cooperative Milk Producers'

Union Ltd., Godhra, Dist. Panchmahals, Gujarat State,
would committed to finish the project work of cattle feed
manufacturing plant within two years after its approval.

-Milk Union is responsible to create infrastructure facility

and would also provide sufficient training to its personals
engaged in operating the cattle feed plant.

-Project work progress, including an audited financial

progress, would be provided to DRDA and state authority
periodically.

-Milk union would keep separate book of accounts,

pertaining to cattle feed project implementation.

11. BENCH MARK SURVEYS.

• After the approval of Project on every two months, the

District Project monitoring committee will meet
together, to review the progress of project.

• Project monitoring committee, would ensure the

fulfillment of guidelines under SGSY concept.

• Every three months (Quarterly) milk union provides an

audited financial book of accounts to District and State
Project monitoring authorities.

• Quality of raw material purchase would be ensured by

Project Monitoring Committee/Milk Union.

• The project work, would be given to "National Dairy

Development Board" on 'Turnkey' basis.

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12. INTIGRATION WITH ON-GOING RURAL
DEVELOPMENT PROGRAM.

- For the erection of 100 MT/DAY cattle feed

manufacturing plant. Panchmahal Milk Union would
need 50 % of financial assistance from state Rural
Development Department under SGSY concept.

- Remaining 50 % of the expenditure would be taken

care by milk union from its own funds.

13. RAW MATERIAL SUPPLY

Milk Union would arrange to purchase raw materials,

that are needed for the production of balanced cattle feed,
would be purchased in bulk by issuing year wise tenders
from regional Agriculture Produce Market committees/
F.C.I. Depot etc.

-Milk union would ensure the purchase of quality raw

material by testing its nutritive value from recognized
state level/NDDB feed testing laboratory.

-Advance Purchase of raw material supply procedure

would be adopted, to ensure sufficient stock of cattle feed
for prompt supply.

14. TECHNICAL KNOW-HOW

- Panchmahal Milk Union, would sign memorandum

of understanding with DRDA and State authority to
follow the rules and guidelines for successful
project implementation.

- Milk union, would remain in continuous touch with

NDDB for technical guidance as and when it may
required.

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 - The Union has 40 degree holder veterinary
professionals who are capable to handle the cattle
feed factory.

- Milk Union would also sign the "Turnkey" Project

with NDDB for its prompt implementation.

15. TRAINING COMPONENT

• After approval of the project Panchmahal Milk Union

would arrange to provide sufficient skill and knowledge
to its personals to operate the cattle feed
manufacturing plant .

• A separate shell of laboratory for testing raw materials,

Data Monitoring would be created on priority base.

• Milk union would consult NDDB, to provide required

training to operate cattle feed plant.

• Training cost would be borne by NDDB and Milk Union

@ 50-50 %

16. MARKETING ARRANGEMENT

• The produced balanced cattle feed would be marketed

in Rural Co-operative network engaged in milk
business.
• As on today, we have 1395 rural milk cooperatives,
totally we are procuring raw milk through 60 milk
routes.
• At present we have separate network for cattle feed
marketing, having cattle feed storage facility at
Godhra, Chopada village (Lunawada) and Limdi
(Zalod).
• We have also constructed 12 fodder banks at rural
location to store either fodder or cattle feed, these
would ensure the prompt supply of cattle feed.
• In future, the cattle feed storage facility would be
expanded at rural level only, to ensure the quality
cat.feed.doc
 cattle feed supply to rural poors, for their milch
animals.
• Sufficient efforts would be made to promote and
encourage the cattle feed marketing.

17. INFRASTRUCTURE DEVELOPMENT

• As mentioned earlier, there is now need of extra

provision for staff, milk union would arrange required
staff, needed in cattle feed project.
.15..
• By establishing cattle feed project, the milk producers
would get quality balanced cattle feed at reasonable
price.High Nutritive animal diet would definitely help in
increasing the present animal productivity. Increase in
the milk productivity ensure the gain of more income
and self sufficiency.

The details cost estimates of Project are as follows.

Please refer page 17 to 26

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 ..16.

18.Benefits/Impacts.

• Being a major input, cattle feed would definitely help

rural poors to gain more income, by increasing animal
milk productivity.

19.Risk factors : zero.

20.Modalities to minimize risk : Not necessary.

21.Criteria for monitoring and evaluation of the project.

- It is already mention in para 11.

22. States commitment to match the share of the project

cost.
cat.feed.doc
 * Total project outlay Rs. 6.68
crores.
* Financial Assistance Rs. 3.34
crores.
Expected from rural department
Under SGSY CONCEPT (50%)
* Milk Union's contribution Rs. 3.34
crores.

Note. After approval of project any cost escalation

would be equally born by state Govt. and Milk Union.

23. BANK COMMITMENT FOR CREDIT

• There is no need of Bank commitment as 50 % of the

total project cost would be taken care by Panchmahal
Milk Union from its own funds.

.27..

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24. Technical scrutiny and Technical feasibility

TECHNICAL SANCTION LETTER

District Panchayat Office,

Animal Husbandry Deptt.
SN/DP/AH/Project/Vashi/2338.40
Panchmahal- Godhra - 389 001
Date : 29.03.2000

To
The Managing Director
Panchamahal Dairy
Godhra.

Sub : Regarding Technical sanction, for establishment

of
cattle feed factory, by Panchmahal District
Cooperative Milk Producers Union Ltd., Godhra.

Dear sir,

As per the guidelines provided by state Animal

Husbandry Deptt. , I the undersigned Dy. Director
(AH), District Panchayat, Godhra hereby, give
technical sanction for establishing balanced cattle
feed manufacturing plant having processing capacity
of 100 MT/day.

Looking to the breedable animal milch population in

Panchmahal and Dahod District, there are actual
need of more than 100 MTS of cattle feed/day This
project would definitely help to uplift social status of
rural milk producers and to improve their economical
condition.

Financial viability of Panchmahal Milk Union also

ensures the early completion of project work.
cat.feed.doc
 Technical the project is found feasible and viable, in
the district. Hence, it is recommended to provide
financial assistance under SGSY concept.

Thanking you,

Yours faithfully

Dy. Director (AH)

District Panchayat, Godhra.
.28..

25. ECONOMIC APPRAISAL OF THE PROJECT.

As indicated earlier, the cattle feed manufacturing

project, would become identical and economical in
this District.

-Even in draught condition the animal productivity

would be sustained by providing high quality balanced
cattle feed to rural poors.

26. ESTIMATED COST

: Total Project Cost Rs. 6.68 crores

: Rural Development Deptt. Rs. 3.34 crores
Contribution (50 %)
: Contribution from Panchmahal Rs. 3.34 crores
Milk Union (50 %)
:Bank credit/share Not Required.

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27. REPAYMENT SHEDULE

As 50 % of the total project cost, would be taken care

by Panchmahal Milk Union there is no necessity to
seek, bank credit for extra fund requirement, Hence
there is no need to mention repayment schedule.

28. Earlier The Panchmahal Milk Union had submitted the

same project to Rural Development Deptt. And Tribal
Development Deptt. To seek 50 % and 25 % financial
assistance to erect 100 MT/day cattle feed plant.

- District DRDA, Governing body has recommended

the project to state authority, to implement the
project under SGSY concept. (The resolution copy
attached herein)
- Due to lack of sufficient funds at District level, body
has requested to state authority to spare special
funds to implement cattle feed project.
- As per the SGSY Project guidelines narrated in
letter dated 12.06.2000 Govt. of Inida, ministry of
Rural Development, we have again modified the
proposal and submitted to state Rural Deptt.

cat.feed.doc