The cabinet today deferred a decision on the corporatisation of loss-making Delhi Milk Scheme (DMS) and asked the agriculture ministry to re-work the proposal.
"The proposal of corporatisation of DMS has been deferred. The agriculture ministry has been asked to re-work the proposal," a highly placed source said.
The cabinet note for DMS corporatisation was moved by the agriculture ministry to enable takeover of the loss-making operation by well performing milk companies.
Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns Amul brand, has evinced interest in running the DMS plants.
GCMMF, leading milk supplier in Delhi-NCR, had also moved a proposal to the Agriculture Ministry in this regard. Amul wants to increase its presence in the national capital region.
The DMS has milk production and packaging capacity of 5 lakh litres per day, besides a network of 1,298 outlets in the NCR. DMS has 800 employees, but the milk production is only about 2.75 lakh litres per day.
However, its cumulative losses touched Rs 838.66 crore in 2011-12 from Rs 814.43 crore in 2010-11 and Rs 782.32 crore in 2009-10.