A new dairy by-product factory will be set up at Ambattur at a cost of Rs. 5 crore, Animal Husbandry and Dairy Development Minister N.R. Sivapathy told the Assembly on Monday.

It would cater to the increasing requirements of Chennai city, he said, replying to the discussion on the demands for grants to his departments.

As part of strengthening infrastructure for animal husbandry, the State government decided to construct buildings, at a cost of Rs. 131 crore, for 18 veterinary hospitals, 356 veterinary dispensaries, one polyclinic, three animal disease intelligence units and five frozen semen banks. This would be implemented through the funding arrangement of National Bank for Agriculture and Rural Development (NABARD) and other schemes.

Another Rs. 25 crore had been set apart for the maintenance of veterinary hospitals and dispensaries. Livestock farms would be improved at a cost of Rs. 17 crore. The Minister said 2,864 posts in the Animal Husbandry department would be filled.