Shimla, Feb 4 (IANS): Himachal Pradesh Chief Minister Sukhvinder Singh Sukhu on Sunday said the government has signed a memorandum of understanding (MoU) with the National Dairy Development Board (NDDB) to provide consultancy services for the establishment of a state-of-the-art automated milk processing plant in Kangra district.

He said the plant, with an initial capacity of 1.50 lakh litres per day (LLDP) and expandable up to three LLPD would be a fully automatic facility.

This ambitious project, set to be constructed with an investment of Rs 225 crore in the first phase in Dhagwar, aims to produce a diverse range of dairy products, including curd, lassi, butter, ghee, paneer, flavoured milk, khoya and mozzarella cheese.

Sukhu said as the project would contribute significantly to the overall growth of the state.

The plant would play a crucial role in bolstering the rural economy by directly purchasing milk from farmers in Chamba, Hamirpur, Kangra and Una districts, said the Chief Minister.

He emphasised the importance of transparency in milk procurement to ensure the farmers get good value for their hard work.

He said an additional investment of Rs 43 crore was earmarked for strengthening the milk procurement network with a target to purchase 2.74 LLPD for sustaining the plant's operations.

The initiative, aligned with the government's commitment to farmer welfare, also includes plans for the second phase, which would see the production of milk powder, ice cream and various types of cheese.