The Uttar Pradesh government has announced a significant boost to the dairy sector by amending the Uttar Pradesh Dairy Development and Milk Product Promotion Policy-2022. Under the revised policy, a capital grant of 35% will now be provided for setting up milk processing units, milk product manufacturing units, and animal feed and nutrition product manufacturing units.
The maximum grant for new animal feed and nutrition units will be INR 5 crore, applicable on the cost of plant machinery, technical civil work, and spare parts. The same 35% grant will also be available for establishing new milk processing and dairy product units.
For existing dairy plants, the new system allows a 35% grant for technical upgradation and startups, capped at INR 2.5 crore.
In addition, a 35% subsidy, up to INR 1 crore, will be provided for setting up data processing milk collection units, village-level milk collection centers, and cold chain systems located outside the main dairy plant.
The government has also introduced new support for expansion:
-A 35% subsidy, up to INR 2 crore, will be offered for expanding existing animal feed manufacturing units by at least 25%.
-A 50% subsidy, up to INR 50 lakh, will be provided for setting up units that manufacture cheese, ice cream, and similar milk products.
In a major step to promote renewable energy use, dairy-related units, including chilling plants located outside industrial areas, will now receive a 50% subsidy for installing solar power projects up to 75 KVA. If such plants are owned and operated by women, the subsidy can go up to 90% of the project cost.
However, the amended policy also removes interest reimbursement on loans previously provided for setting up or upgrading dairy units.
This comprehensive revision aims to encourage private investment, modernise dairy operations, and promote sustainability in the dairy sector across Uttar Pradesh.
