SEZ board rejects Iffco proposal for dairy

Board of Approvals for Special Economic Zones (SEZ) has rejected the Indian Farmers Fertiliser Cooperative (Iffco) proposal to set up an integrated dairy project in its Kisan SEZ in Nellore District in the State.

The entity will be knocking the doors of the Ministry of Commerce to reconsider the decision, according to a senior Iffco official.

The board's move may hamper Iffco’s ambitious project involving around Rs 1,000 crore.

A consortium of Iffco, Fonterra, a New Zealand-based dairy company, and an Indian company called Global Dairy Health are developing a mega dairy as part of Iffco's SEZ.

"We are approaching the Ministry of Commerce as to why the application has been rejected when the Development Commissioner has approved the same. We are meeting the commerce secretary soon," the official who did not want to be identified told PTI.

The Kisan SEZ will entail an investment of about Rs 5,000 crore and will be spread over 2,600 acre.

The SEZ will undertake activities related to producing agricultural and milk products.

The board rejected the request of the developer for setting up an integrated dairy project, spread over 225 acres in the non-processing area of the SEZ, as the request was not in conformity with the SEZ Act and Rules.

The official said Iffco had conveyed the Board that it may not avail of SEZ benefits until they reach milk volume of 4 to 5 lakh litres per day.

Iffco has already sough government permission to import 3,000 cows from New Zealand in the first phase.

With the import of cows, the milk yield is projected to be around 1 lakh litres a day, which is not sufficient to set up milk products plant, the official said, adding that at least 4-5 lakh litres was required for the plant.

Iffco wants to sell milk and other products like butter and cheese under the Iffco brand.

The company plans to sell its dairy products in domestic and foreign markets.