For the processing of potatoes in any form, removal of peel is art important unit operation. Hence, a power operated batch type potato peeler was developed and its performance was evaluated. The main parts of the machine are a peeling drum and a water spraying unit. The peeling drum with protrusions on the inside surface rotates and detaches peel from potatoes by abrasion. The water spraying unit washes the potatoes and simultaneously peel is removed from the drum through the perforation along with the flow of water The capacity of the machine is 100 kg/h with a peeling efficiency and peel losses of 78% and 6%, respectively. The machine costs around Rs 6500.00 ($250) along with an electric motor and is suitable for a small scab processor of potato chips and other products. The estimated cost of peeling of I ton potatoes is only Rs 100.00 ($3.85).