Shimla: Himachal Pradesh Chief Minister Sukhwinder Singh Sukhu on Wednesday said Rs 201 crore has been allocated for the construction of a milk processing plant at Dhagwar in Kangra district.

The plant is being developed in collaboration with the National Dairy Development Board and construction work is scheduled to begin soon.

In a statement issued here, the Chief Minister said that the initial capacity of the plant will be to process 1.50 lakh liters per day (LLPD) of milk, which can be expanded up to 3 LLPD.

The fully automated plant aims to produce a variety of dairy products such as curd, lassi, butter, ghee, paneer, flavored milk, khoya and mozzarella cheese. He said that this project is expected to increase the prosperity of farmers in Kangra, Hamirpur, Chamba and Una districts.

“As the project takes off, it is set to bring prosperity to the dairy farming community and ensure that farmers get good value for their hard work,” he said.

Once the processing plant starts operating, the government is also planning to start production of milk powder, ice cream and different types of cheese at this plant.

"To make Himachal Pradesh self-reliant and prosperous, it is necessary to strengthen the rural economy, as about 95 percent of the state's population lives in rural areas. The goal of strengthening the rural economy will be achieved by making the farmers economically stable and strong. Without it, the vision of a prosperous and self-reliant Himachal is unattainable,” Sukhu said.