PROJECT PROPOSAL FOR FINANCIAL ASSISTANCE PROJECT NAME BALANCED CATTLE FEED MANUFACTURING PLANT ( 100 MTD )

Transcription

1 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 DIST. PANCHMAHALS (GUJARAT) SUBMITTED TO : RURAL DEVELOPMENT DEPARTMENT GOVT. OF GUJARAT, GANDHINAGAR GOVT. OF INDIA, NEW DELHI.

2 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 Area of Project / Area Profile Details 7. Key Activities Beneficiaries Detail Implementing Agency Role Role of Line Departments / NGO / 97 PRF 11. Benchmark Surveys Integration with on going Rural 98 Development Program 13 Raw material Supply Technical Know-How Training Component Marketing Arrangement Infrastructure Development & Cost Estimate Details of Cattle Feed Plant Benefits / Impacts Risk Factors Modalities to Minimize Risks Criteria for Monitoring & evaluation 102 of the project 22 & 23 State Commitment to match the Share of project 24 Technical Scrutiny & Feasibility Economic Appraisal of the Project Estimated Cost Summery Repayment Schedule District Governing Body Resolution Copies 29 Milk Union's Progress Five Years Technical Input Activities Progress Details 112

3 RECOMMENDATION FROM DISTRICT RURAL DEVELOPMENT AGENCY GODHRA. DISTRICT PANCHMAHALS. (GUJARAT STATE) Panchmahal District Coop Milk Producers' Union Ltd., Godhra was established in may The Milk shed has human population of lakh of which 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 The Milk Union got affiliated to the G.C.M.M.F. Ltd., Anand on 1 st April 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

4 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 crores, from which Panchmahal Milk Union are in need of financial assistance of Rs 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 crores would be provided by district co-operative Bank as credit of 12 % interest. Being a community Dairy Development activity at large scale, we expect to have financial assistance of Rs crores from Rural Development Department under SGSY concept under special innovative project.

5 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.

6 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 The Milk shed has human population of lakh of which 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 Union got affiliated to the G. C. M. M. F. Ltd., Anand on 1 st April 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 31 st March 2000.

7 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 , 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.

8 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 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 SC Members, ST Members, 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 / 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

9 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.

10 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 1 ST Year : Purchase of land, Leveling of land and major civil works. 2 ND 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 number of BPL families in Panchmahal District. Totally more than 1,00,000 of families would be benefited by intensive training programme.

11 6. Area of the Project Natural Resources AREA PROFILE 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.

12 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.

13 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 nonvegetarian. 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.

14 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.

15 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.

16 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 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.

17 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.

18 Sr. No. Particulars No. of cooperative Organized No. of Milk producer member ('000) 3. Landless members ('000) 4. Small and marginal farmers ('000) 5. Families Slight higher Poverty line ('000) 6. Schedule cast and 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.

19 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.

20 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.

21 - 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 % 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

22 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 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

23 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 States commitment to match the share of the project cost.

24 * Total project outlay Rs crores. * Financial Assistance Rs crores. Expected from rural department Under SGSY CONCEPT (50%) * Milk Union's contribution Rs 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..

25 24. Technical scrutiny and Technical feasibility TECHNICAL SANCTION LETTER District Panchayat Office, Animal Husbandry Deptt. SN/DP/AH/Project/Vashi/ Panchmahal- Godhra Date : 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.

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

27 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 Govt. of Inida, ministry of Rural Development, we have again modified the proposal and submitted to state Rural Deptt.