The Baroda Dairy with an annual turnover of Rs 500 crores, is finding it difficult to continue with its ‘Narmada Neer’ project as it has turned out to an “uneconomical” venture, suffering huge losses, its Chairman Narendra Patel said on Wednesday.
Patel said, through sale of ‘Narmada Neer’ (Narmada Water) in pouches, sealed bottles and cans, the Dairy hardly earns a sum of Rs 25 lakhs per annum, which proves that it is not an economically viable project for the Dairy.”
“We have started discussing various options on deciding the fate of this project which was set up during the tenure of Madhu Srivastava BJP MLA as Chairman of the Dairy more than two years ago,” he said.
There are 15 milk dairies (including Baroda Dairy) set up in various parts of Gujarat having affiliation with the Gujarat Milk Marketing Federation. Then what was the
reason for Srivastava to set up this plant, asked Patel.
By winning 11 out of the total 15 posts of directors of the Board of this dairy poll on October 13 2009, the Congress supported candidates are in absolute majority in the
Board of Baroda Dairy.
The Dairy had to spend Rs 70 lakhs for laying new pipe line at Dhaniavi this year after old pipe line decayed, he said.
Patel said the then chairman Srivastava had decided on setting up of this plant on the pretext of saving recurring expenditure of more than Rs 40 lakhs per annum incurred on
getting required quantity of water of the dairy through hiring of water tankers.
Instead of saving this amount, the Dairy has to pay charges of Rs 72 lakhs to Sardar Sarovar Nigam for buying water from it, said Patel.
Jayesh Patel, a senior Congress party leader who had played a key role in the victory of 11 candidates of Congress party on the board of directors is in favour of handing over
of this Narmada Neer project to any party or group.
Patel said hiring of water tankers, was the cheapest way of getting water instead of spending such huge amounts on this Narmada Neer plant.