(1) No person shall after the commencement of this Act set up a dairy or milk processing unit handling or having installed capacity for handling milk or milk products in quantities exceeding the limit specified by the Board in this behalf except under a licence in that behalf.
(2) No person shall on or after the date to be appointed in this behalf by the State Government by notification (such date being not earlier than three months after the commencement of this Act), carry on business of dairy or as processor or manufacturer, handling or having installed capacity for handling milk or milk products in quantities exceeding the limits specified by the Board by notification in this behalf, except under a licence in that behalf.
(3) Notwithstanding anything contained in sub-sections (1) and (2), a milk processing unit licensed under the Industries (Development and Regulation) Act, 1951 shall not be refused licence under this Act, if it makes an application in the prescribed manner and complies with the prescribed conditions and furnishes such security and pays such fee as may be prescribed.
Explanation I-- Different dates may be appointed by the State Government in such notification for different areas or for different categories, namely, dairies, processors or manufacturers.
Explanation II-- Different rates or fees may be prescribed for the categories mentioned in Explanation I or for different classes thereof.