The financial assistance is extended for purchase of bulk milk coolers with the following objectives.
Bulk Milk Cooling Units are now taken up in all parts of the country. The scheme has potential to finance in Operation Flood programme (OFP) and also in non-OFP districts under Govt., private and cooperative sectors.
Village Milk Cooperative Societies of Cooperative Milk Unions or Milk Collection Centres of private Dairies or units. Producer Companies and SHG Federations. Individuals in tie up with private dairies can also take up the activity.
The bulk cooling units are also considered as part of large dairy farms and processing units.
Components: The components of Bulk Milk Cooling Unit comprises of bulk cooling tank with accessories, DG set, weighing machine, weighing bowl, roller conveyor, can wash tub, Automatic Milk Collection Unit (AMCU), water storage tanks etc.
Capacity :The capacity of Bulk Milk Cooling Units is ranging from 500 to 10000 litres.
Specifications: The specifications of different models manufactured by two firms are
|Particulars||Mahesh Engineering||De Laval Pvt Ltd||ISF|
|1||Basis of Design||ISO 5708||ISO 5708||ISO 5708||ISO 5708|
|2||Types of Cooling System||Direct||Direct||Direct||Direct|
|3||Shape of Tank||Horizontal Semi-cylindrical||Closed Horizontal cylindrical||Closed Horizontal cylindrical||Closed Horizontal cylindrical|
|7||Power supply||single/Three phase 415V||Three phase 425V, 50Hz||Three 415V, 50HZ||Three phase 415V, 50Hz|
|8||Connected load||4.96 kw||13 kw||9 kw||13 kw|
|9||Voltage stabilizer||10 KVA||25 KVA||25 KVA||25 KVA|
|10||Temperature||From 35C to 4 C||From 35C to 4 C||From 35C to 4 C||From 35C to 4 C|
|11||Cooling time||3 hours||3 hours||3 hours||3 hours|
|12||Diesel Generator||15 KVA||25 KVA||25 KVA||25 KVA|
Equipment suppliers: The machinery should confirm to the BIS standards and are presently manufactured in the country by DeLaval Pvt Ltd, IDMC, IFS Industries Pvt Ltd,etc. The addresses of few manufacturers are
List of major suppliers of Bulk Milk collers
Processing: The operations involve collection of milk and chilling to a temperature of 4 degree C.
Since the process is simple no technical collaboration is envisaged for the project, however the Milk Unions/Private Dairy Plants would be providing guidance to the societies/collection centres in purchase and installation of Bulk Milk Coolers, milk testing and in training of manpower in the operations and maintenance.
The capital cost varies with the capacity and the specifications of the Bulk Milk Coolers. However, two models have been considered i.e. 2000 and 5000 litres capacity, whose unit costs are Rs. 11.80 lakhs and 17.25 lakhs respectively. The detailed unit cost is given in the Annexure I. It is assumed that the space available in the existing collection centre/cooperative society will be sufficient to install the equipment and accordingly no cost on civil structures is considered. In case if the civil structures are required to be considered, the same may be included under project cost. Similarly rental accommodation could also be explored. Constructed area of about 800 to 1200 sq.ft is sufficient.
The location of the Bulk Cooling unit should be in milk shed area having potential for milk procurement. Proper arrangements for milk procurement from farmers to the unit through milk routes or alternate means have to be taken care. Regular supply of utilities such as power, fuel and water have to be ensured. Availability of man power in terms of operator, tester, workers, incharge , etc. is to be ensured.
Based on the various techno economic parameters, the economics of the project has been worked out and presented below for two different models. The items of income include saving due to reduction in souring/curdling of milk, reduction in spillage and pilferage of milk, payment received for chilling, saving in repairs and replacement of cans, saving in expenditure on transportation, etc. The components of expenditure include transport expenses from society to BMCU, power and fuel expenses, repairs and maintenance, manpower, miscellaneous expenses, etc.
The income and expenditure details for two models are presented in below table:
Income and expenditure - Bulk Milk Cooling Unit (2000 lit./unit)
|Milk procurement (in litres/day)||1200 (for six months)||1400||1600||1800||1800||1800||1800||1800||1800|
|1||Saving due to reduction in souring and curdling of milk (@ 1%)||0.15||0.38||0.43||0.46||0.46||0.46||0.46||0.46||0.46|
|2||Reduction in spillage at 1% of milk||0.61||1.53||1.74||1.84||1.84||1.84||1.84||1.84||1.84|
|3||Payment received from milk union for chilling (@Rs1.30/litre)||2.84||7.12||8.07||8.54||8.54||8.54||8.54||8.54||8.54|
|4||Saving in repairs and replacement of cans @ Rs 0.12 /litre||0.26||0.66||0.74||0.79||0.79||0.79||0.79||0.79||0.79|
|5||Net saving on transportation cost of milk @ Rs.0.18 / litre||0.39||0.99||1.12||1.18||1.18||1.18||1.18||1.18||1.18|
|1||Milk transportation expenses from society to BMCU (Rs 0.65 /lit)||1.42||3.56||4.03||4.27||4.27||4.27||4.27||4.27||4.27|
|2||Power and fuel consumption (Rs. 0.35/litre)||0.76||1.92||2.17||2.30||2.30||2.30||2.30||2.30||2.30|
|3||Repairs and maintenance (@ Rs.0.05 / litre)||0.11||0.27||0.31||0.33||0.33||0.33||0.33||0.33||0.33|
|4||Man power cost (Rs.0.30/litre||0.66||1.64||1.86||1.97||1.97||1.97||1.97||1.97||1.97|
|5||Miscellaneous expenses (Rs 0.08/lit)||0.17||0.44||0.50||0.53||0.53||0.53||0.53||0.53||0.53|
|E||Gross surplus (B-D)||1.14||2.85||3.23||3.42||3.42||3.42||3.42||3.42||3.42|
Income and expenditure - Bulk Milk Cooling Unit (5000 lit./unit)
|Milk procurement (in litres/day)||3000 (for 6 months)||3750||4250||4500||4500||4500||4500||4500||4500|
|1||Saving due to reduction in souring and curdling of milk (@ 1%)||0.38||0.96||1.09||1.15||1.15||1.15||1.15||1.15||1.15|
|2||Reduction in spillage at 1% of milk||1.53||3.83||4.34||4.60||4.60||4.60||4.60||4.60||4.60|
|3||Payment received from milk union for chilling (@Rs1.30/litre)||7.10||17.79||20.17||21.35||21.35||21.35||21.35||21.35||21.35|
|4||Saving in repairs and replacement of cans @ Rs 0.12/litre||0.66||1.64||1.86||1.97||1.97||1.97||1.97||1.97||1.97|
|5||Net saving on transportation cost of milk @ Rs.0.18 / litre||0.98||2.46||2.79||2.96||2.96||2.96||2.96||2.96||2.96|
|1||Milk transportation expenses from society to BMCU (Rs 0.65 /lit)||3.55||8.90||10.08||10.68||10.68||10.68||10.68||10.68||10.68|
|2||Power and fuel consumption (Rs. 0.40/litre)||2.18||5.48||6.21||6.57||6.57||6.57||6.57||6.57||6.57|
|3||Repairs and maintenance (@ Rs.0.05 / litre)||0.27||0.68||0.78||0.82||0.82||0.82||0.82||0.82||0.82|
|4||Man power cost (Rs.0.38/litre||2.07||5.20||5.89||6.24||6.24||6.24||6.24||6.24||6.24|
|5||Miscellaneous expenses (Rs 0.08/lit)||0.44||1.10||1.24||1.31||1.31||1.31||1.31||1.31||1.31|
|E||Gross surplus (B-D)||2.13||5.34||6.05||6.41||6.41||6.41||6.41||6.41||6.41|
Financial analysis covering the Benefit Cost Ratio (BCR) Net Present Worth (NPW) and Internal Rate of Return (IRR)
For the models of 2000 litres and 5000 litres, the BCR, NPW and IRR worked out to 1.074 :1 and 1.092:1; Rs. 3.548 lakhs and Rs.10.857 lakh and 25.57 % and 36.57%, respectively. The entire bank loan can be repaid in nine/ Eight years without any grace period as per the repayment schedules presented in below tables:
Repayment schedule - Bulk Milk Cooling Unit of 2000 liters
|Year||Bank Loan Beginning||Outstanding End||Gross surplus||Payment of interes||Repayment of principal||Toral repayment||Net Available||DSCR|
Repayment schedule - Bulk Milk Cooling Unit of 5000 liters
|Year||Bank Loan Beginning||Outstanding End||Gross surplus||Payment of interest||Repayment of principal||Total repayment||Net Available||DSCR|
Bulk Milk Cooling units of various sizes are eligible economic activities for loan from banks and refinance support by NABARD. The banks may consider financing for this activity subject to technical feasibility, financial viability and bankability.
The special terms and conditions of the project are given in below table:
The financing bank may ensure that:
Source: Model Bankable Project
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