The Aarey Milk Colony occupies a total area of 3,166 acres (1,281 ha) of land, out of which the area available for cultivation of quality fodder and grasses is 400 acres (160 ha) only. Land is also leased out to various organizations and institutions of the Maharashtra State Government and Central Government of India. Allocation of land is as follows:

1. Total land given to the Central Government of India Institutions (Central Poultry Farm, Modern Bakery, NDDB, RBI)—229.92

2. Total land given to the Maharashtra State Government Institutions (Mumbai Veterinary College, SRP, MHADA, MCGB, Film City, Fishery)—729.12

3. Area under road and buildings—460.00

4. Area uncultivated and waste land under nullahs, lake, farm bunds, farm roads, river channels—1,020.20

5. Area under lawns and gardens, paragrass, and orchards— 537.00

6. Land and the social forestry land, etc.—183.00

7. Total—3,160.00

The main objective to erect such colony:

1. Shifting of cattle/buffalo from the city limits,

2. Supply of better quality milk to the citizens of Mumbai at comparatively cheaper cost, and

3. Maintenance of these animals on scientific and modern animal husbandry practices.

In the colony, 30 stables are constructed having a capacity for housing 500–550 animals in each stables. Each stable has been provided with an ancillary building such as hay godown, chaff-cutting sheds, calving lines, and residential accommodation for the cattle owner and their staff. The private cattle owner who are maintaining their herds in the Mumbai city prior to 1949 were shifted and allotted licences to maintain their buffalos in the colony stables. Presently, Aarey Milk Colony has got the capacity of accommodating 16,079 cattle in 30 units. The licence holders are required to pay the necessary license fee, occupation charges, water and electricity charges and other ancillary services rendered to them.

In addition to the activities of maintaining the large herds of milch animals in Aarey Colony, certain activities like running primary school for the benefit of children of residents of the Aarey Colony and running 24 bed hospital are also undertaken by Aarey authorities.

Animal Husbandry Scheme, Cow Unit Scheme

Under this scheme, nearly 1,700 indigenous and cross-breed cows are maintained at four Dairy Farms Units. The indigenous herd is utilized for producing large numbers of cross-breed heifers which are supplied to the farmers of dairy co-operatives in Maharashtra state to augment the milk production and the generation of cross-breed herd will be utilized to study the effect of cross-breeding up to 7.5% and 6.5% exotic blood level. This study will be useful to advise the farmers in the Maharashtra state regarding the breeding policies that can be practiced by them for breeding their cross-bred progeny at the village level. Maintenance of cross-breed herds will be economic while the indigenous herds will be showing some amount of losses, but it will be a good study for future planning.

In order to increase the revenue and decrease the losses incurred, the following activities were initiated from 2001–02.

1. The toll tax collection for the vehicles using the Aarey Milk Colony main road from Powai, Malad-Borivali, Dindoshi, Goregaon, Andheri, Marol-Maroshi by calling the public tenders.

2. The Aarey tank measuring 3–4 acres is utilized for boating purpose on fixed rent basis.

3. The unutilized godowns which were earlier used for storing the fodder and concentrated animal feed are rented to various parties by calling the public tenders.

4. Various stall open spoken were allotted for vendors' stalls, restaurants, general stores on rental basis.

5. The agricultural produce from the various trees. E.g. Coconuts, mangoes, cashews, and palmyra fruit, etc. were given as contractual basis.

6. The various recourses and by-products. E.g. Water, fodder plot, and cattle are being sold on contractual basis.

The various activities are carried out by the staff of around 640 personnel under the administrative control of Chief Executive Officer, Aarey Colony.