The National Dairy Development Board (NDDB) has exercised a 15-year National Dairy Plan (NDP) with a total cost of Rs 17,000 crore in order to meet up India's projected milk demand of 180 million tonnes by 2020-21.

NDDB Chairman Amrita Patel said that after considering the proposed plan, the central government has concluded a series of consultations with 14 major milk producing states.

These states account for over 90% of the country's milk production.

The consultations concentrated on plans to roll out a scientifically planned programme to raise bovine productivity and milk production.

At present, dairying contributes around 8% to the country's GDP and the plan projections intend to take it to 10%.

The states urged the central administration to offer funds as grants, not as loans.

To start with, NDDB would draft detailed project reports for five to six states. Once the central government and the World Bank approve the projects, the NDP's implementation will begin.

The initial stage of NDP, scheduled from April 2011 to March 2017, will involve funds of Rs 1,600 crore, for which a credit line from International Development Agency of World Bank was being sought, Patel told reporters.

Under the NDP, milk production is said to be augmented by increasing productivity through a much more scientific approach for breeding and feeding. (With Inputs from Agencies)