The financial assistance is extended for processing of milk with the following objectives. i) To enhance the keeping quality of milk ii) To avoid the economic losses to farmers by procuring the milk in time from them iii) To manufacture various milk products as per market demand iv) To provide quality products at affordable prices to the consumers. Recent study shows that India is the largest producer of milk in the world which is nearly 10% of the world production. Various milk-based products which can be manufactured commercially in a rural industry are Paneer (Cheese), Dhahi (Curd), Ghee etc. These products can be manufactured by low cost traditional methods and machineries. This kind of industries can be located in area where abundance quantity of milk is available. The cost of these products would be considerably low compared to those of big companies. A good number of employment generations is possible with low investment. Milk and its products are the essential item of daily life in our country especially majority of Indians are vegetarian and thus milk and milk products are indispensable to Indians. The per capita consumption was