Uttar Pradesh Government Approves New Dairy Plant in Banda, Expansion of Jhansi Facility to Boost Milk Processing

Lucknow | 10 March 2026 The Government of Uttar Pradesh has approved a major step to strengthen milk processing infrastructure in the Bundelkhand region. A new dairy plant with a capacity of 20,000 litres per day will be established in Banda, while the existing dairy plant in Jhansi will be expanded significantly. The capacity of the Jhansi plant will increase from 10,000 litres per day to 30,000 litres per day, aiming to improve milk processing and support dairy farmers in the region. The decision was taken during a cabinet meeting held on Tuesday, where the government also approved the appointment of Indian Dairy Machinery Company as the implementing agency for civil and mechanical works related to both projects. The cabinet has also cleared a proposal to provide a 12.50 percent centage charge to the agency for carrying out the work, and the cost will be borne by the state government through its own resources. The initiative is part of the state’s broader plan to strengthen the dairy sector and contribute to the goal of transforming the state’s economy into a one-trillion-dollar economy. By expanding milk processing facilities in Bundelkhand, the government aims to improve the supply chain and reduce milk wastage, which often occurs due to limited processing infrastructure in rural areas. Once the projects are completed, milk producers in the region are expected to benefit from improved processing capacity and better market opportunities. The increased infrastructure will help ensure that farmers receive fair and stable prices for their milk while also supporting the growth of dairy-based industries across the state. Uttar Pradesh Government Approves New Dairy Plant in Banda, Expansion of Jhansi Facility to Boost Milk Processing The Government of Uttar Pradesh has approved a major step to strengthen milk processing infrastructure in the Bundelkhand region. A new dairy plant with a capacity of 20,000 litres per day will be established in Banda, while the existing dairy plant in Jhansi will be expanded significantly. The capacity of the Jhansi plant will increase from 10,000 litres per day to 30,000 litres per day, aiming to improve milk processing and support dairy farmers in the region. The decision was taken during a cabinet meeting held on Tuesday, where the government also approved the appointment of Indian Dairy Machinery Company as the implementing agency for civil and mechanical works related to both projects. The cabinet has also cleared a proposal to provide a 12.50 percent centage charge to the agency for carrying out the work, and the cost will be borne by the state government through its own resources. The initiative is part of the state’s broader plan to strengthen the dairy sector and contribute to the goal of transforming the state’s economy into a one-trillion-dollar economy. By expanding milk processing facilities in Bundelkhand, the government aims to improve the supply chain and reduce milk wastage, which often occurs due to limited processing infrastructure in rural areas. Once the projects are completed, milk producers in the region are expected to benefit from improved processing capacity and better market opportunities. The increased infrastructure will help ensure that farmers receive fair and stable prices for their milk while also supporting the growth of dairy-based industries across the state.