After getting an approval from the Ludhiana Municipal Corporation for opening new milk booths at 26 sites in the city, MILKFED, which runs Verka milk booths across Punjab under state-owned Punjab State Cooperative Milk Producers’ Federation, has delayed opening of new booths due to model code of conduct imposed for the Lok Sabha polls.
While the MC granted approval for 26 new sites for milk booths at its F&CC meeting held on February 6 this year, it also rejected nine sites due to different reasons.
In its agreement with MILKFED, the MC will be paid a rent of Rs 1,000 per month by Verka and the site will be allotted for three years.
The MC will allow booth size of 10X10 and Verka cannot change the size. Also, the rent shall be increased at 10% per year.
The MC has also made it clear that no products except Verka milk products will be allowed for sale in booths and eatables cannot be cooked inside the booth.
Verka will also have to make arrangements for electricity connection and has to ensure proper cleanliness outside the booths, says the copy of terms and conditions given to Verka by the MC.
However, while Verka has already made it clear to the MC that it sells its products on “no profit, no loss” basis, the MC has already added profit-sharing point in terms and conditions.
“MC will have share in profit sharing other than lease money. Although they are selling products on ‘no profit, no loss’ basis, we will take from them in writing that in future if they incur any profits, MC will have a share in it,” says the copy of terms and conditions passed in the F&CC meeting on February 6.
Talking to Newsline, Ajmer Singh Bhagpura, chairman, Verka milk plant, said, “Due to model code of conduct imposed in the state, the opening of new booths has been delayed.
The work will start in May. As far as profit sharing with MC is concerned, we have already told them that we sell products on ‘no profit, no loss’ basis. The basic aim of opening these booths is to make Verka a household name as people are consuming adulterated milk and impure products. We just want to increase access of our products by opening booths at different locations.”
The sites rejected by the MC due to varied reasons are New Sabzi Mandi, Park near Pink Flats, I-Block park, Sarabha Nagar, Rishi Nagar market, Kitchlu Nagar market park, park at Tagore Nagar market, Aggar Nagar sector A and B and Maya Nagar park.
While I-block Sarabha Nagar park area is under dispute, traffic and road congestion are reasons the MC has cited for Tagore Nagar and Maya Nagar.
The marketing committee and Ludhiana Improvement Trust hold charge of sites like New Sabzi Mandi, Pink flats park and Rishi Nagar market. Aggar Nagar is also a private housing society, not under the MC.
The MC has given …continued »