As part of a CSR initiative, energy major Oil India has decided to step into dairy sector and has signed an agreement with Institute of Rural Management, Anand (IRMA) to carry out a feasibility study.

According to company sources, a detailed project report (DPR) will be prepared after the study in two districts of Assam where Oil India Ltd (OIL) has significant presence.

"It is going to be significant CSR initiative of the company. This project is aimed at filling the gap in milk production in North East and giving employment opportunity to the youths of Assam," a source said.

The state-run OIL has signed an MoU with IRMA in Gujarat around 10 days ago for the study that will cover select villages in Dibrugarh and Tinsukia districts of the state.The project is planned to be developed on the lines of the 'Amul' model.

"Through this MoU, OIL aims to formulate a DPR on the basis of baseline survey for implementing the company's 'Dairy Project'.

The DPR will enable us to devise a roadmap and a long-term broad vision plan for the same," an official said.

The study funded by OIL will focus on the prospects of developing a cooperative dairy project in Assam.

When contacted, OIL General Manager N R Deka said: "The baseline survey for the project shall be done with the objective of increasing milk production and dairy products by providing opportunity to unemployed youths."

The feasibility study will focus on quantitative, qualitative and participatory methods of enquiry where secondary data will be collected from various sources, helping the company to identify dairying as an alternative source of livelihood, he added.

Earlier in July this year, OIL Chairman and MD Sunil Kumar Srivastava had said the company plans to tie up with the Assam government to start a cooperative dairy business in the lines of Gujarat's successful 'Amul' model.

The project named 'Kamdhenu' envisaged setting up a milk production facility in Upper Assam to establish the dairy business in 3 to 5 years, he had said.

"If the study suggests, we will set up a big milk production centre in Upper Assam. We already have a successful model 'Amul' in Gujarat. We are just trying to implement the same here," Srivastava had said, adding the cooperative may supply milk to the entire North East in the future.