PM Modi to Inaugurate ₹407.56 Crore Banas Dairy Projects in Gujarat, Launch Bio-CNG Plant Developments

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30 Oct 2026
min read

News Synopsis

Prime Minister Narendra Modi will inaugurate three Banas Dairy projects worth ₹407.56 crore in Gujarat and lay foundation stones for two Bio-CNG plants to boost dairy infrastructure.

PM Modi to Inaugurate Three Banas Dairy Projects Worth ₹407.56 Crore in Gujarat

Prime Minister Narendra Modi will inaugurate three major projects developed by Banas Dairy in Gujarat’s Banaskantha district on October 30, during his two-day visit to the state. Collectively valued at ₹407.56 crore, the projects aim to strengthen the dairy cooperative sector through advanced animal breeding, food processing and automated storage infrastructure.

The Prime Minister will also virtually lay the foundation stones for two new Bio-CNG plants at Tharad and Radhanpur. These facilities are expected to promote renewable energy production, improve waste utilisation and generate additional income opportunities for livestock farmers.

Three Major Banas Dairy Projects to Be Inaugurated

The three projects scheduled for inauguration include the Bharat Bovine Breeding and Research Centre (BBBRC), a French fries processing facility and an Automated Storage and Retrieval System (ASRS).

Their combined investment of ₹407.56 crore reflects Banas Dairy’s efforts to diversify its operations beyond conventional milk production and processing.

1. Bharat Bovine Breeding and Research Centre at Bhildi

The Bharat Bovine Breeding and Research Centre, established at Bhildi, is the largest of the three projects, with an investment of ₹324.77 crore.

Spread across 127 acres, the facility is designed to function as a centre of excellence for animal breeding. Its primary objectives include improving cattle genetics, strengthening breeding practices and encouraging innovation in the livestock sector.

The project has received ₹38.83 crore in funding under the Centre's Rashtriya Gokul Mission, including ₹2 crore allocated for donor animals. The National Dairy Development Board (NDDB) is providing technical assistance to the facility.

Additionally, the project has been approved under the Animal Husbandry Infrastructure Development Fund (AHIDF) scheme and receives financial support from NABARD.

2. Automated Storage and Retrieval System at Palanpur

Banas Dairy has developed an Automated Storage and Retrieval System at Palanpur with an investment of ₹31.14 crore.

The facility is designed to automate the storage and dispatch of ultra-high-temperature (UHT) dairy products. Its nine-level steel-rack infrastructure can accommodate approximately 11,000 pallets, enabling faster warehouse operations and better inventory management.

The automated system is expected to improve product traceability, storage efficiency and dispatch operations.

Developed internally by Banas Dairy, the facility has also helped reduce operational expenses. The resulting financial benefits are expected to support the cooperative's 4.18 lakh milk producers.

The storage infrastructure can also be modified to accommodate different categories of dairy products, offering greater flexibility for future operations.

3. French Fries Processing Plant at Sanadar

The French fries manufacturing facility at Sanadar in Deodar taluka has been established with an investment of ₹51.65 crore.

Banas Dairy began expanding the plant's production capacity in April 2026, increasing its processing capability from two tonnes to five tonnes per hour.

The cooperative has developed an integrated potato processing system that covers several stages, including laboratory-based plantlet development, seed production, potato cultivation, cold-storage facilities and final processing.

This integrated approach connects agricultural production directly with food manufacturing and consumer markets.

According to the project details, the cooperative has established a comprehensive production chain that is not currently available through another cooperative organisation or agency in India.

PM Modi to Lay Foundation Stones for Two Bio-CNG Plants

Apart from inaugurating the three dairy projects, Prime Minister Modi will virtually lay the foundation stones for two Bio-CNG plants at Tharad and Radhanpur.

The proposed facilities will use cattle dung as their primary raw material to produce clean fuel and organic fertiliser.

The Tharad plant will have a processing capacity of 75 metric tonnes of cattle dung, while the Radhanpur facility will be capable of processing 100 metric tonnes.

Banas Dairy currently operates four similar plants that convert cattle dung into Bio-CNG for vehicle fuel and organic fertiliser production.

The two additional facilities are expected to expand the cooperative's renewable energy capabilities and improve the commercial utilisation of livestock waste.

These projects will also create another potential revenue stream for livestock farmers by giving economic value to cattle dung.

Key Dignitaries Expected to Attend the Event

Several senior political leaders, government officials and representatives of the dairy cooperative sector are expected to participate in the programme.

Gujarat Chief Minister Bhupendra Patel, Deputy Chief Minister Harsh Sanghavi and Assembly Speaker and Banas Dairy chairman Shankar Chaudhary will attend the event.

State ministers Jitu Vaghani and Rushikesh Patel, along with other public representatives, including Kamlesh Patel, Pravin Mali and Swaroopji Thakor, are also expected to be present.

Representatives from the dairy cooperative sector will include NDDB chairman Dr Meenesh Shah, officials from the Gujarat Cooperative Milk Marketing Federation (GCMMF), heads of affiliated milk unions and Banas Dairy managing director Sangram Chaudhary.

Milk producers from Banaskantha, Members of Parliament, MLAs and government officials will also participate.

Banas Dairy Expands Beyond Traditional Milk Production

The latest investments highlight Banas Dairy's broader strategy to diversify its cooperative business model.

By investing in advanced cattle breeding facilities, automated warehousing, food processing and Bio-CNG production, the cooperative is expanding its role across multiple stages of the agricultural and dairy value chain.

The projects are expected to strengthen infrastructure, improve operational efficiency, encourage sustainable energy production and create additional economic opportunities for milk producers and livestock farmers.

With these developments, Banas Dairy is positioning itself as a diversified cooperative organisation combining dairy operations, agricultural processing and renewable energy initiatives.

Conclusion

The inauguration of Banas Dairy’s ₹407.56 crore projects marks an important step towards modernising Gujarat’s dairy cooperative sector. With investments in cattle breeding, food processing, automated storage and Bio-CNG production, the initiatives aim to improve efficiency, promote renewable energy and create additional income opportunities for farmers. These developments are expected to strengthen Banas Dairy’s position as a diversified cooperative model supporting sustainable agriculture and rural economic growth.

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