Namakkal, Tamil Nadu: A hi-tech dairy processing plant being set up at a cost of ₹89.28 crore in Namakkal district is set to be commissioned in February 2026, with the trial run already underway, officials said.
The plant belongs to Namakkal Aavin, which was bifurcated from Salem Aavin in December 2018. At present, Namakkal Aavin has 537 village-level Dairy Cooperative Societies (DCS), of which 504 are functional. Due to the absence of an independent processing facility, raw chilled milk has so far been transported to Salem for processing, with around 70,000 litres of packaged milk being supplied back daily.
To address this bottleneck, Namakkal Aavin submitted a proposal to the National Dairy Development Board (NDDB) in July 2022 to establish a new dairy plant with a processing capacity of 2 lakh litres per day (LLPD).
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In August 2022, NDDB sanctioned an interest-bearing loan of ₹64 crore for a period of 10 years, including a three-year moratorium on interest payment. The project also received ₹6.89 crore as grant-in-aid from the Ministry of Food Processing Industries under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) in March 2023. Namakkal Aavin contributed ₹18.39 crore, bringing the total project cost to ₹89.28 crore.
Officials said that construction is nearly complete and the trial run began on January 16, 2026. Once operational, the plant will procure milk directly from 310 villages, significantly strengthening the local dairy ecosystem.
The project is expected to create direct employment for 150 people and provide indirect livelihood support to around 1.22 lakh people, including 58,546 farmers, 504 DCS, and 50 logistics and support service providers across the district.
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