Lok Sabha Question No. 3440 (UNSTARRED), answered on 2016-12-06
Subject: Mega Food Parks
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: PONNUSAMY VENUGOPAL, RAMCHARAN BOHARA, YOGI ADITYANATH, SANGANNA AMARAPPA KARADI, MAULANA BADRUDDIN AJMAL, RAMESH POKHRIYAL NISHANK, VASANTHI M.

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 3440

ANSWERED ON 6 TH  DECEMBER, 2016

## MEGA FOOD PARKS

## 3440.  DR. P. VENUGOPAL:

SHRI RAM CHARAN BOHRA: SHRI YOGI ADITYA NATH: SHRI SANGANNA AMARAPPA: SHRI BADRUDDIN AJMAL: DR. RAMESH POKHRIYAL "NISHANK": SHRIMATI VASANTHI M.:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the objectives and guidelines for setting up of Mega Food Parks (MFPs) and the extent to which  the  objectives  have  been  achieved  since  introduction  of  MFP  Scheme  including employment generated and revenues earned therefrom in the country;
- (b) whether the  Government  has  received  a  number of  proposals  for  setting  up of  MFPs  in various parts of the country during the last three years and the current year and if so, the details thereof along with the MFPs approved and operational so far, State/UT-wise;
- (c) the pattern of funding and acquisition of land for the construction of MFPs and the funds sanctioned, released and utilised for construction and functioning of MFPs in the country during the said period, State-wise;
- (d) whether  there  has  been  any  delay  in  the  establishment  of  MFPs  in  various  parts  of  the country including Haryana and if so, the details thereof and the steps taken to complete the same in time; and
- (e) whether the Government proposes to give incentives to the private sector for developing food parks and also encourage setting up of food processing units outside the MFPs and if so,  the  detail  thereof  and  the  study  conducted  for  alternative  models  to  develop  food processing industries in the country?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

(a) The primary objective of setting up of Mega Food Parks (MFPs)  is to  provide  modern infrastructure  facilities for  the  food  processing  sector  in  the  country.  The  responsibility  of execution, ownership and management of the Mega Food Park vests with a Special Purpose Vehicle  (SPV)  registered  under  the  Companies  Act.  However,  State  Government/  State Government entities/Cooperatives applying for the project under the scheme are not required to form a separate SPV. The main eligibility criteria of the project are as under:

- i. The promoter holding maximum equity in the SPV would be the lead promoter.
- ii. At least 50 acres of land for the project is required to be arranged by the SPV either by purchase or on lease for at least 75 years.
- iii. The combined net worth of the promoters/proposed shareholders of SPV should not be less than Rs.50.00 crore. Each member in SPV must have a net worth at least 1.5 times of his/her  proposed  equity  contribution  in  order  to  ensure  requisite  contribution  for  the project from each shareholder.
- iv. The SPV needs to bring in at least 20 percent of the total project cost as equity in general areas and at least 10 percent of the total project cost in difficult and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas  of  the  States.  However,  State  Government  /  State  Government  entities  will  be required to contribute at least 10 percent of the total project cost of the Mega Food Park project, not necessarily, in the form of the equity.
- v. Central Government agencies becoming shareholders in the SPV, can only hold up to 26 percent of equity in the SPV. However, there will be no such restriction on State Govt./ State Govt. entities/ its Cooperatives.
- vi. SPVs / IAs are not permitted to sell the plots in Mega Food Parks. The plots can only be given on lease to other entrepreneurs for setting up of food processing units in the Park.
- vii. The common facilities in the park cannot be sold or leased out. They can only be offered to units on rental basis.

A total of 42 Mega Food Parks have been approved by the Government to be set up to create modern infrastructure facilities for food processing sector in the country. Out of these, 34 Mega  Food  Parks  have  already  been  approved.  Each  Mega  Food  Parks,  after  being  fully completed  and  occupied  by  the  food  processing  units,  is  expected  to  generate  collective investment of around Rs. 250 crore that would eventually lead to an annual turnover of about Rs. 450-500  crore  and  direct  and  indirect  employment  of  about  5,000-6,000  persons  and  benefit about 25,000-30,000 farmers.

(b)  &  (c)    Ministry  of  Food  Processing  Industries  has  approved  34  Mega  Food  Parks  out  of which 23 Mega Food Parks have been approved during the last three years and the current year (upto 30.11.2016) for implementation by State Public Sector Undertakings (PSUs) and Private Sector for creation of modern infrastructure for food processing sector in the country. The State / UT wise details of funds sanctioned, released and expenditure incurred alongwith present status of these 23 Mega Food Parks is at Annexure-I .

Out of 34 approved Mega Food Parks, 3 Mega Food Park projects have been completed during last three years i.e. (i) Srini Food Park in Chittoor, Andhra Pradesh, (ii) Patanjali Food & Herbal  Park  in  Haridwar,  Uttarakhand  and  (iii)  Integrated  Food  Park  in  Tumkur,  Karnataka. Further,  another  5  Mega  Food  Park  projects  i.e.,  (i)  North  East  Mega  Food  Park  in  Nalbari, Assam,  (ii)  International  Mega  Food  Park  in  Fazilka,  Punjab,  (iii)  Indus  Mega  Food  Park  in Khargoan,  Madhya  Pradesh,  (iv)  Jharkhand  Mega  Food  Park  in    Ranchi,  Jharkhand  and  (v) Jangipur Bengal Mega Food Park in Murshidabad, West Bengal have been made operational.

The scheme envisages a  capital grant @50% of the eligible project cost in general areas and @75% in difficult and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States subject to a maximum of Rs. 50 crore per  project.  At  least  50  acres  of  land  is  required  to  be  arranged  by  the  SPV  /  IA  either  by purchase or on lease of at least for the Central Processing Centre of the Mega Food Park.

(d) As per the Mega Food Park scheme guidelines, the stipulated timeline for completion of project is 30 months. However, there  have been delays in implementation of mega food parks approved in various parts of the country including Haryana for the reasons given below:

- (i). Delay in acquiring 50 acre contiguous land with Change of Land Use (CLU).
- (ii). Delay  in  Permission  for  sub-leasing  of  plots  required  in  case  of  Government/leased land.
- (iii). Difficulty in getting Term loan from Banks / Financial Institutions.
- (iv). Delay  in  getting  statutory  clearances  (environmental,  town  and  country  planning, ground water, electricity, etc.) from the State Government.
- (v). Non availability of any special incentives for setting up food processing units in Mega Food Parks.

Ministry of Food Processing Industries has taken several steps to complete the projects in time as under:

- (i). Issues  have been  taken  up  with  State  Governments  to expedite  statutory  clearances and to remove the bottlenecks.
- (ii). State Governments and Ministry of Finance requested to provide fiscal incentives to the Mega Food Park projects.
- (iii). Issues have been taken up with the Banks/ FIs to expedite sanction of term loan to the projects.
- (iv). State Governments have been involved in selection and monitoring of the projects.
- (v). District Level Coordination Committee has been constituted under the Chairmanship of District Magistrate (DM) to resolve local issues.
- (vi). Release of installments of grant has been linked to allotment of plots to the processing units.
- (vii). Provision of penalty has been made in the scheme guidelines for delay in meeting the timeline for claiming grant installments.
- (viii). Regular monitoring of the projects is being done at various levels.

(e) The private sector is eligible for availing financial assistance under the Mega Food Park Scheme implemented by Ministry of Food Processing  Industries for setting up of Mega Food Parks  in  the  country.  Further,  the Government  has  created  a  Rs.  2000  crore special  fund with NABARD to make available affordable credit to designated Food Parks and the agro-processing units to be set up in the designated Food Parks notified by this Ministry.  No specific study has been conducted by the Ministry for alternative models to develop food processing industries in the country.

*****

## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  OF  THE  LOK  SABHA  UNSTARRED QUESTION NO. 3440 ANSWERED ON 6 TH  DECEMBER, 2016 REGARDING MEGA FOOD PARKS

Status of Implementation of 23 Mega Food Park Projects accorded final approval during last three years

(Rs. in crore)

| Sl. No.        | Project Name                                                                       | Project Cost   | Date of Final Approval   | Amount of grant approved   | Amount of grant released                                                                     | Total Expendit ure                                                                           | Status               |
|----------------|------------------------------------------------------------------------------------|----------------|--------------------------|----------------------------|----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|----------------------|
| Andhra Pradesh | Andhra Pradesh                                                                     | Andhra Pradesh | Andhra Pradesh           | Andhra Pradesh             | Andhra Pradesh                                                                               | Andhra Pradesh                                                                               | Andhra Pradesh       |
| 1.             | Andhra Pradesh Industrial Infrastructure Corporation (APIIC), Krishna              | 184.88         | 31.12.2015               | 50                         | APIIC is in the process of meeting the conditions for release of 1st installment.            | APIIC is in the process of meeting the conditions for release of 1st installment.            | Under Implementation |
| 2.             | Godavari Mega Aqua Park Pvt. Ltd., West Godavari                                   | 122.60         | 16.12.2013               | 50                         | 15                                                                                           | 24.37                                                                                        | Under Implementation |
| Bihar          | Bihar                                                                              | Bihar          | Bihar                    | Bihar                      | Bihar                                                                                        | Bihar                                                                                        | Bihar                |
| 3.             | Pristine Mega Food Park Pvt. Ltd., Khagaria                                        | 127.64         | 06.08.2014               | 50                         | 14.12                                                                                        | 24.93                                                                                        | Under Implementation |
| 4.             | JVL Mega food Park Pvt. Ltd., Rohtas                                               | 117.21         | 10.08.2015               | 50                         | SPV has been issued preliminary notice of cancellation. SPV needs to meet the conditions     | SPV has been issued preliminary notice of cancellation. SPV needs to meet the conditions     | Under Implementation |
| Chhattisgarh   | Chhattisgarh                                                                       | Chhattisgarh   | Chhattisgarh             | Chhattisgarh               | Chhattisgarh                                                                                 | Chhattisgarh                                                                                 | Chhattisgarh         |
| 5.             | Indus Best Mega Food Park Pvt. Ltd., Raipur                                        | 124.50         | 04.06.2014               | 50                         | SPV has submitted an expenditure of Rs. 13.61 Cr. SPV needs to obtain term loan disbursement | SPV has submitted an expenditure of Rs. 13.61 Cr. SPV needs to obtain term loan disbursement | Under Implementation |
| Gujarat        | Gujarat                                                                            | Gujarat        | Gujarat                  | Gujarat                    | Gujarat                                                                                      | Gujarat                                                                                      | Gujarat              |
| 6.             | Gujarat Agro Infrastructure Mega Food Park Pvt. Ltd., Surat                        | 117.87         | 22.05.2014               | 50                         | 14.19                                                                                        | 42.05                                                                                        | Under Implementation |
| Haryana        | Haryana                                                                            | Haryana        | Haryana                  | Haryana                    | Haryana                                                                                      | Haryana                                                                                      | Haryana              |
| 7.             | Haryana State Industrial & Infrastructure Development Corporation Limited, Sonipat | 177.59         | 06.11.2015               | 50                         | HSIDC is in the process of meeting the conditions for release of 1 st installment.           | HSIDC is in the process of meeting the conditions for release of 1 st installment.           | Under Implementation |

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| Himachal Pradesh   | Himachal Pradesh                                                                                     | Himachal Pradesh   | Himachal Pradesh   | Himachal Pradesh   | Himachal Pradesh                                                                | Himachal Pradesh                                                                | Himachal Pradesh     |
|--------------------|------------------------------------------------------------------------------------------------------|--------------------|--------------------|--------------------|---------------------------------------------------------------------------------|---------------------------------------------------------------------------------|----------------------|
| 8.                 | Cremica Food Park Pvt. Ltd., Una                                                                     | 99.70              | 06.08.2014         | 50                 | 14.01                                                                           | 23.06                                                                           | Under Implementation |
| Jammu and Kashmir  | Jammu and Kashmir                                                                                    | Jammu and Kashmir  | Jammu and Kashmir  | Jammu and Kashmir  | Jammu and Kashmir                                                               | Jammu and Kashmir                                                               | Jammu and Kashmir    |
| 9.                 | RFK Greens Food Park Pvt. Ltd., Pulwama                                                              | 79.43              | 19.02.2014         | 50                 | 5.00                                                                            | 13.04                                                                           | Under Implementation |
| Kerala             | Kerala                                                                                               | Kerala             | Kerala             | Kerala             | Kerala                                                                          | Kerala                                                                          | Kerala               |
| 10.                | Kerala State Industrial Development Corporation Limited (KSIDC), Alappuzha                           | 129.15             | 27.11.2015         | 50                 | 10.00                                                                           | 11.94                                                                           | Under Implementation |
| 11.                | Kerala Industrial Infrastructure Development Corporation (KINFRA), Palakkad                          | 119.02             | 27.11.2015         | 50                 | 15.00                                                                           | 18.18                                                                           | Under Implementation |
| Madhya Pradesh     | Madhya Pradesh                                                                                       | Madhya Pradesh     | Madhya Pradesh     | Madhya Pradesh     | Madhya Pradesh                                                                  | Madhya Pradesh                                                                  | Madhya Pradesh       |
| 12.                | Avantee Mega Food Park Pvt. Ltd. (formerly RuchiAcroni Industries Ltd.), Dewas                       | 144.12             | 31.12.2015         | 50                 | 15.00                                                                           | 35.80                                                                           | Under Implementation |
| Maharashtra        | Maharashtra                                                                                          | Maharashtra        | Maharashtra        | Maharashtra        | Maharashtra                                                                     | Maharashtra                                                                     | Maharashtra          |
| 13.                | Wardha Mega Food Park Pvt. Ltd.(Formerly known as Jain Agro Trading Company Private Limited), Wardha | 92.36              | 13.01.2016         | 50                 | SPV is in the process of meeting the conditions for release of 1st installment. | SPV is in the process of meeting the conditions for release of 1st installment. | Under Implementation |
| 14.                | Satara Mega Food Park Pvt. Ltd., Satara                                                              | 139.33             | 06.08.2014         | 50                 | 15.00                                                                           | 82.98                                                                           | Under Implementation |
| Mizoram            | Mizoram                                                                                              | Mizoram            | Mizoram            | Mizoram            | Mizoram                                                                         | Mizoram                                                                         | Mizoram              |
| 15.                | Zoram Mega Food Park Pvt. Ltd., Aizawl                                                               | 75.20              | 10.06.2015         | 50                 | 15.00                                                                           | 17.47                                                                           | Under Implementation |
| Odisha             | Odisha                                                                                               | Odisha             | Odisha             | Odisha             | Odisha                                                                          | Odisha                                                                          | Odisha               |
| 16.                | Odisha Industrial Infrastructure Development Corporation (IDCO), Khurda                              | 134.13             | 06.11.2015         | 50                 | 15.00                                                                           | 31.29                                                                           | Under Implementation |

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| Punjab      | Punjab                                                              | Punjab      | Punjab      | Punjab      | Punjab                                                                            | Punjab                                                                            | Punjab               |
|-------------|---------------------------------------------------------------------|-------------|-------------|-------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|----------------------|
| 17.         | Punjab Agro Industries Corporation Ltd., Ludhiana                   | 117.61      | 27.11.2015  | 50          | 15.00                                                                             | 14.11                                                                             | Under Implementation |
| 18.         | The Sukjhit Starch & Chemical Limited, Kapurthala                   | 123.72      | 06.11.2015  | 50          | SPV is in the process of meeting the conditions for release of 1st installment.   | SPV is in the process of meeting the conditions for release of 1st installment.   | Under Implementation |
| Rajasthan   | Rajasthan                                                           | Rajasthan   | Rajasthan   | Rajasthan   | Rajasthan                                                                         | Rajasthan                                                                         | Rajasthan            |
| 19.         | Greentech Mega Food Park Pvt. Ltd., Ajmer                           | 113.57      | 19.02.2014  | 50          | 14.85                                                                             | 40.51                                                                             | Under Implementation |
| Telangana   | Telangana                                                           | Telangana   | Telangana   | Telangana   | Telangana                                                                         | Telangana                                                                         | Telangana            |
| 20.         | Telangana State Industrial Infrastructure Corporation Ltd., Khammam | 109.44      | 05.02.2016  | 50          | TSIIC is in the process of meeting the conditions for release of 1st installment. | TSIIC is in the process of meeting the conditions for release of 1st installment. | Under Implementation |
| 21.         | Raaga Mayuri Agrovet Pvt. Ltd., Mahboobnagar                        | 124.15      | 31.12.2015  | 50          | 10.00                                                                             | 15.69                                                                             | Under Implementation |
| 22.         | Smart Agro Industries Corporation Pvt. Ltd., Nizamabad              | 108.95      | 10.06.2015  | 50          | 5.00                                                                              | 14.56                                                                             | Under Implementation |
| Uttarakhand | Uttarakhand                                                         | Uttarakhand | Uttarakhand | Uttarakhand | Uttarakhand                                                                       | Uttarakhand                                                                       | Uttarakhand          |
| 23.         | Himalayan Food Park Pvt. Ltd., Udham Singh Nagar                    | 99.96       | 23.01.2014  | 50          | 29.79                                                                             | 51.19                                                                             | Under Implementation |