Amit Shah Inaugurates Multi-Crore Banas Dairy Projects including Bio-CNG plant
December 06, 2025
Sanadar (Banaskantha): Union Home and Cooperation Minister Amit Shah on Sunday inaugurated and laid the foundation stone for a series of major projects of Banas Dairy, declaring that the dairy’s cooperative model has become an inspiration for the entire nation. The event, held at Sanadar Dairy in Deodar taluka, witnessed the presence of thousands of cattle breeders and members of the Parliamentary Consultative Committee of the Ministry of Cooperation.
Shah laid foundation stone of a state-of-the-art milk powder and baby food manufacturing plant, built at a cost of ₹440 crore, with a processing capacity of 150 tonnes per day. The new facility will enable the dairy to convert surplus milk into high-value products such as dairy whitener, skimmed milk powder (SMP), whole milk powder (WMP) and baby food, strengthening both production efficiency and market reach.
Shah inaugurated a fully automated paneer plant established with an investment of ₹35 crore. With a capacity of 20 MTPD, the plant processes 1 lakh litres of milk daily. It replaces the traditional manual paneer-making process with a modern technological setup that converts the fat and solid-not-fat content of milk into high-quality paneer, adding significant value to the dairy’s product portfolio.
Another major project dedicated during the visit was the biogas-based Bio-CNG plant at Agthala, developed jointly by Banas Dairy and Suzuki India at a cost of ₹58.67 crore. The plant purchases cattle dung from farmers at ₹1 per kg and uses it to produce renewable CNG fuel. So far, 5.5 crore kg of dung has been procured, and the facility currently processes 1 lakh kg of dung daily to generate 1,900 kg of Bio-CNG. The remaining slurry is refined into an organic fertilizer branded as ‘Bhoomi Amrit’, which enriches soil health and provides farmers an additional income stream.
The Bio-CNG initiative not only supports farmers but also strengthens the circular economy model envisioned by Banas Dairy. It reduces carbon emissions by 6,750 tonnes annually, contributing substantially to environmental protection. Encouraged by early success, Banas Dairy has planned 25 such plants across Banaskantha in the coming years, marking a significant leap toward sustainable rural development.
Shah inaugurated Rs. 45 crore cheese plant that has 6 lakh litre cheese processing capacity. In this plant, along with cheese production, the high nutritional elements present in milk are converted into protein powder.
Shah visited the newly established Banas Radio Station, the Potato Processing Plant, and the Ice-Cream Plant at the Sanadar complex before holding a detailed meeting with Banas Dairy’s board of directors.
Speaking at the ceremony, Shah said the phenomenal rise of Banas Dairy—from an eight-village initiative to a ₹24,000-crore cooperative—symbolised the power of rural enterprise. He credited founder Galbabhai for envisioning a system that truly empowered cattle breeders, noting that the cooperative began in 1986 with a turnover of merely ₹400, and has today become one of India’s largest dairy organizations. “Galbabhai’s dream and the tireless hard work of cattle breeders has today become an inspiration for the entire country,” Shah said.
Recalling the transformation witnessed in Banaskantha, Shah said the region was once known as a “dry kiln” dependent solely on monsoon agriculture. “Prime Minister Narendra Modi changed the face of this district by bringing Sujalam Suflam and the Narmada Canal network. Today, Banaskantha grows three crops a year and has emerged as a model of water conservation and women-led rural development,” he stated.
Shah said the Ministry of Cooperation is working to strengthen rural economies through modern cooperative systems. He announced that a new cyclical dairy ecosystem is being developed that will raise cattle breeders’ incomes by up to 20 percent in the next five years. “A system is now in place for village farmers to sell their products globally. In January 2026, senior leaders of 250 dairies from across India will visit Banaskantha to study the Banas Model,” he added.
Legislative Assembly Speaker Shankar Chaudhary said Prime Minister Modi’s creation of a dedicated Ministry of Cooperation had strengthened rural economies and improved living standards. He highlighted that Indian farmers had already conducted global business worth ₹4,283 crore through government-backed platforms and noted that new cooperative ventures—from organic farming to taxi services—were expanding livelihood opportunities. “Banaskantha will soon double the income of cattle breeders through multiple dairy-linked businesses,” he said. DeshGujarat
Related Stories
Recent Stories
- Jafrabad LNG FSRU Project 92.3% Complete; Deadline Sept 2026: Gujarat Govt
- ₹107 Crore Penalty Imposed on AMNS India Over Hazira Land Encroachment: Gujarat Govt
- DPR Process Underway for Kalpasar Project: Gujarat Govt
- PM Modi to visit Israel on February 25–26
- Centre Approves ₹647 Crore NH-56 Widening and Upgradation Project in Valsad
