The Delhi Milk Scheme (DMS) has incurred losses of Rs 842.57 crore since its inception in 1959 up till last fiscal, mainly due to under utilisation of its plant capacity, Parliament was informed today.

Last year, the Cabinet had given the go-ahead for corporatisation of state-owned DMS.

The government has decided to hand over operations and management of DMS to a suitable agency on lease basis for 30 years, Minister of State for Agriculture Mohanbhai Kundariya said in a written reply to Lok Sabha.

“DMS has accumulated losses of Rs 842.57 crore since its inception up to March 31, 2015. The reason for losses may be primarily attributed to its under utilisation of plant capacity,” Kundariya said in the reply.

He also informed that in last fiscal, the company has earned a net profit of Rs 6.65 crore.

Delhi Milk Scheme
Delhi Milk Scheme

DMS has milk production and packaging capacity of 5 lakh litres per day, besides a network of 1,298 outlets in the NCR.

It was set up in 1959 with the primary objective of supplying wholesome milk to Delhi citizens at reasonable prices as well as for providing remunerative prices to milk producers.

DMS has been procuring raw/fresh milk from Punjab, Haryana, Uttar Pradesh, Rajasthan and Bihar.

Besides processing and supplying milk, DMS is also manufacturing and marketing yogurt, ghee, butter, paneer, butter milk and flavoured milk.