Milk Chilling (BMC) for ₹11.8 lakh: Cost & Subsidy (2026)

As per the government model report, the basic Milk Chilling (BMC) costs ₹11.8 lakh. A 2,000-litre BMC to chill milk in the village. 3% interest relief (AHIDF); your share is about ₹1.18 lakh, the rest

 · 4 min read
Milk Chilling (BMC) for ₹11.8 lakh, 3% interest relief
Milk Chilling (BMC) · Basic unit
₹11.8 lakhto start
2,000 litres/dayCapacity
3%Interest relief
~3.1 yrsPayback
In 60 words

As per the government model report, the basic Milk Chilling (BMC) costs ₹11.8 lakh. A 2,000-litre BMC to chill milk in the village. 3% interest relief (AHIDF); your share is about ₹1.18 lakh, the rest is a bank loan. Year-3 net profit ~12% of sales is expected, but the bank margin is thin — fix buyers and prices first.

Source: NABARD Model Bankable Project on Bulk Milk Cooling Units,… · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹11.8 lakh

₹1.18 lakhYour share10%
₹10.6 lakhBank loan90%

From your pocket only ₹1.18 lakh — the rest is a bank loan with 3% interest relief.

What does the money go into?

  • Machinery₹5.3 lakh
  • Other/remaining cost₹6.48 lakh

02Income over 5 years

Yearly sales (blue bar) · Net profit (green)

Year 1
₹3.92 lakh
Loss ₹2.49 lakh
Year 2
₹9.43 lakh
Profit ₹43 thousand
Year 3
₹11.1 lakh
Profit ₹1.35 lakh
Year 4
₹12.9 lakh
Profit ₹2.33 lakh
Year 5
₹13.2 lakh
Profit ₹2.53 lakh

net profit ~12% of sales · payback ~3.1 years · Includes interest, depreciation and a 5% yearly rise in costs.

Note: by bank standards this model has a thin margin. Fix buyers, prices and costs first.

035 steps to start

  1. Get trainedLearn the work, find buyers
  2. Prepare the siteShed/room, power, water
  3. Get a DPR madeProject report as the bank needs it
  4. Apply for bank loan3% interest relief (AHIDF)
  5. Produce and sellIncome starts from year 1
Watch the video: Milk Chilling (BMC)
Watch on YouTube @utkrishi

04Who is it right for?

Groups linked to a milk union or dairy
People who can collect 2,000 litres of milk a day
Villages with reliable power

053 mistakes that cause losses

Not collecting enough milkthe model is weak
Not signing a firm contract with a dairy
Underestimating power and DG costs

06Frequently asked questions

What decides if a BMC works?

Collecting close to 2,000 litres every day and having a firm contract with a dairy.

What government support is there for the Milk Chilling (BMC)?

No direct subsidy; 3% interest relief on the loan (AHIDF).

How much can the Milk Chilling (BMC) earn?

In the government model, year-3 sales are about ₹11.1 lakh with net profit ~12% of sales; payback ~3.1 years.

Milk Chilling (BMC) — Want to start?

Tell us your district and budget — an expert will suggest the next step for free.

Chat on WhatsApp+91 86250 77758Full details →

Learn first: ₹99 masterclass · Instagram · Facebook · YouTube

Source: NABARD Model Bankable Project on Bulk Milk Cooling Units,… · AHIDF – Dept of Animal Husbandry
Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.
WhatsAppCall

Published on
Utkrishi Team

Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 86250 77758