Govt allocates 17 new mega food parks

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SME Times News Bureau | 25 Mar, 2015
The Centre has allocated the development of 17 mega food parks across the country to state governments and private firms envisaging an investment of over Rs 6,000 crore, reports media.

A mega food park provides various facilities to food processors, farmers, retailers and exporters, helping achieve faster growth of food processing industries.

The project cost to set up these 17 mega food parks would be Rs 2,030 crore, of which the central grant would be Rs 850 crore.

An estimated investment of another Rs 4,000 crore would be from food processing units to be set up in these parks.

"The Ministry received 72 proposals both from state governments and private players for the 17 food parks. 7 mega food parks have been allocated to state governments and 10 to private players," Food Processing Minister Harismrat Kaur Badal told reporters in New Delhi on Tuesday.

Under the scheme (2008-09) of mega food parks, the Food Processing Ministry had sanctioned 42 projects throughout the country. Of these, 25 parks have already been allocated.

"The total projected cost of these 17 mega food parks is estimated at Rs 2,030 crore, of which the government's contribution would be to the tune of Rs 850 crore. Another Rs 4,000 crore is estimated to be invested once the basic infrastructure of these food parks is set up," Badal said.

She said basic infrastructure in these food parks needs to be set up within 30 months.

In each mega food park, 40-50 food processing units would come up.

Five state governments -- Punjab, Haryana, Andhra Pradesh, Telangana, Odisha --- have been allocated one food park each, while Kerala government has been allocated 2 food parks.

In these mega food parks, 80,000 people are expected to get employment while 5 lakh farmers would also be benefitted.

Badal further said only 2 percent of total fruits, vegetables and grains produced in the country are processed.

The Mega Food Park Scheme, based on cluster approach, is modelled on hub and spoke architecture.

It aims at facilitating the establishment of a strong food processing industry backed by an efficient supply chain, which includes collection centres, central processing centre (CPC) and cold chain infrastructure.

The scheme envisages one time capital grant of 50 percent of the project cost (excluding land cost) subject to a maximum of Rs 50 crore in general areas, and 75 percent of the project cost (excluding land cost) subject to a ceiling of Rs 50 crore in difficult and hilly areas, including the North-East and J&K.