The Maharashtra government is planning to hand over the Mahanand Dairy to the Gujarat-based NDDB due to mounting losses. The opposition alleges that this move is part of a plan to favor Gujarat. The dairy has suffered heavy losses and has not been able to sustain itself as a brand. The fate of over 1,000 employees is uncertain as NDDB can only accommodate around 350. The payment of Rs 130 crore is the root cause halting the handover. The state government is in talks with NDDB for the takeover.
As reports emerged on Wednesday of plans to hand over the Mahanand Dairy, a Maharashtra government undertaking, to the Gujarat-based but Centre-run National Dairy Development Board (NDDB) due to mounting losses, the opposition Maha Vikas Aghadi alleged that the Shinde-Fadnavis government wanted to hand over the dairy business to Gujarat just as it was shifting key projects to the neighbouring state.
Officials said that due to difficulties in milk collection and distribution and rise in losses, the Mahanand Dairy board recently passed a resolution and sent a proposal to the state government asking it to hand over management of the dairy to NDDB.
The decision to hand over Mahanand Dairy, a Maharashtra government undertaking, to the Gujarat-based but Centre-run National Dairy Development Board (NDDB) was taken by its board last year, but the handover process was stuck over payment of Rs 130 crore to its workers, dairy development minister Radhakrishna Vikhe Patil of the BJP told PTI. Chhagan Bhubjal of the Ajit Pawar-led NCP described the shift as “unfortunate.”
Aventure of Maharashtra State Cooperative Milk Federation Ltd, Mahanand is one of the top cooperative dairies in the state. It is similar to Amul in Gujarat and Nandini in Karnataka and was once profitable but has suffered heavy losses in the recent past and hasn’t been able to sustain itself as a brand, officials said.
The Shiv Sena (UBT) and Congress claimed the move was part of a plan to favour Gujarat. UBT Sena MP Sanjay Raut said, “Mahanand, Gokul, Varana, Chitale… we have many milk brands in Maharashtra. There is a large network of milk production and milk dairies in the rural areas. Amul is not necessary in the state for that. The Centre tried to kill a similar brand called Nandini in Karnataka. Congress con tested the election on that one plank. Efforts are on to take Mahanand to Gujarat as well. Mahanand is the identity of Maharashtra. That identity is also being erased now.” He added, “Every day one business is being taken to Gujarat and the CM and Dy CMs are sitting with mouths shut.”
State Congress chief Nana Patole said, “First Vedanta Foxconn, then the diamond market, the submarine project in the Konkan and now Mahanand which is known as Maharashtra’s brand in the dairy business. This Gujarat-minded government doesn’t want to do anything about the unemployment and economic situation in Maharashtra. The youth of the state are living under threat of unemployment, and the economic condition of Maharashtra, which once left its mark of progress on the map of India, is bad. Already BJP has given all the projects that will provide huge employment to Gujarat.”
In March last year, Vikhe Patil had told the legislature the state government was in advanced stages of talks with NDDB for Mahanand’s takeover. Officials said if the handover does take place, the fate of many of the over 1,000 employees could hang in the balance as NDDB has said it could only accommodate around 350. Vikhe Patil told PTI on Wednesday payment of Rs 130 crore is the root cause halting the handing over. “The issue will be resolved once it is decided whether the state government or NDDB would make the payment,” he said. Around 1,200 workers are employed with Mahanand Dairy, of whom some 530 opted for VRS, he said.
“The dairy needs to make payment to the tune of Rs 130 crore to workers, but its current turnover and revenue generation is too low,” he said. He cited the example of Jalgaon district cooperative dairy, saying, “It was with NDDB for 10 years. Once it became selfsufficient, it was given back. We can do the same with Mahanand also.
