Andhra Pradesh CM lays foundation for Chittoor Dairy revival, Amul to invest Rs 385 cr

Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy on Tuesday laid the foundation for the revival of the now defunct Chittoor Dairy in collaboration with Gujarat Cooperative Milk Marketing Federation Ltd (GCMMFL), better known as Amul and a 300-bed CMC Vellore hospital in the district. The production at Chittoor Dairy was suspended for over 20 years mounting the debts to Rs 182 crore. It was cleared by the present government to inject new life into it. As part of the collaboration, Amul has committed investments of Rs 385 crore which would generate 5,000 new jobs and benefit two lakh people indirectly.

As per agreement with the state government, Amul has to start production within 10 months of receiving the lease of Chittoor Dairy land, where it will build a milk processing unit.

It will also set up units to make paneer, yoghurt, cheese, butter, ice cream and a milk powder factory.


Among the good things happening today is the reopening of the defunct Chittoor Dairy and laying foundation for a hospital, Reddy said.

Recounting the glorious days of Chittoor Dairy, the Chief Minister said it used to put smiles on the faces of farmers and enriched this region.

Holding former Chief Minister and TDP chief Chandrababu Naidu allegedly responsible for Chittoor Dairy's downfall, Reddy said the dairy started suffering losses following the birth of Heritage company, a private dairy company owned by Naidu's family.

Further, he alleged that without issuing any notice, Chittoor Dairy had been shut down on August 31, 2002 when Naidu was the Chief Minister.

Naidu had not only sold Chittoor Dairy but also several sugar factories and paper mills in the cooperative sector, including public sector units like Allwyn and Republic Forge to politicians for a pittance, Reddy claimed.

The TDP chief allegedly sold them or closed taking "kickbacks to encourage private firms," he said and added that 54 units were shut down in such fashion.

Chittoor Dairy which commenced operations as a chilling plant, went on to process 2 lakh litres of milk a day by 1988. It then increased the capacity between 2.5 lakh and 3 lakh litres of milk by 1993, the Chief Minister said.

Meanwhile, laying the foundation for a new hospital to be constructed by CMC Vellore in Chittoor, Reddy said that it was his father and former Chief Minister Y S Rajasekhar Reddy's dream, who allotted land for its construction but was neglected following his death in 2009.

After 14 years now, Rajasekhar Reddy's son has laid the foundation to fulfil his dream, he said.