Amma schemes self-sustaining

Chennai: Amma brand of schemes feared to be money-guzzlers have turned out to be money-spinners after slight marketing exercise, a top state government official told Deccan Chronicle. Except Amma canteen, all other Amma schemes are now self-sustaining without any assistance of the state.

Amma drinking water is making Rs 2 profit per pet bottle and Amma salt has started making profits with the Tamil Nadu Salt Corporation inching towards a turnover of Rs 31 crore. Amma cement also seems to have the potential to make profit and break even, if logistics are slightly reworked, the official said.  
 Initially it was feared that Amma water could drain the resources of state transport department, but after two and half years of operations, the project is now making profits.

There are multiple factors for the success of Amma brand of products. There is no marketing and publicity exercise and government staff are productively used through deputations and deployments. Further there is no major infra investment for land and other logistical support and finally there is always tax exemption, when the government sells a product to benefit public, the official explained.

“One of the major reasons for the success of Amma water is the quality groundwater available in Gummidipoondi and the plant has capacity to produce 3 lakh litres of mineral water per day”, said an official at the state run drinking water unit located inside Institute of Road Transport.

“I have been consuming Amma water and rail neer for the past two years and both are good. The state and railway should not restrict their bottles to commuters and should be available in open market as the private players still mint money selling drinking water”, said Nizar Ahamed, a software professional.