Lok Sabha Question No. 4943 (UNSTARRED), answered on 2019-07-23
Subject: Guidelines for Mega Food Park
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Virendra  Kumar

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. †4943

ANSWERED ON 23 RD  JULY, 2019

## GUIDELINES FOR MEGA FOOD PARKS

## †4943. DR. VIRENDRA KUMAR:

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

- (a) the details of the objectives and guidelines regarding setting up of Mega Food Parks in the country and the extent to which these objectives have been achieved;
- (b) whether  the  Union  Government  has  received  several  proposals  from  the  States regarding setting up of Mega Food Parks in various parts of the country during the last three years and the current year; and
- (c) if so, the details thereof, State-wise including Gujarat and Madhya Pradesh?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

- (a): The  details  of  objectives  and  salient  features  of  the  scheme  guidelines  regarding setting up of Mega Food Parks in the country are at Annexure-I . The detailed Guidelines of the  Scheme  of  the  Mega  Food  Parks  (MFPs)  are  also  available  on  Ministry's  website: www.mofpi.nic.in

A  total  of  42  Mega  Food  Parks  have  been  approved  by  the  Government  to  create modern  infrastructure  facilities  for  food  processing  sector  in  the  country.  Out  of  these,  38 MFP  projects  have  been  accorded  final  approval  and  4  projects  have  been  accorded  inprinciple  approval.  These  projects  are  at  various  stages  of  implementation.  So  far  Sixteen Mega  Food  Park  projects  at  Chittoor  (Andhra  Pradesh),  Haridwar  (Uttarakhand),  Tumkur (Karnataka), Fazilka (Punjab), Nalbari (Assam), Khargone (Madhya Pradesh), Murshidabad (West Bengal), Rayagada (Odisha), Satara (Maharashtra), Ajmer (Rajasthan), Udham Singh Nagar (Uttarakhand), Surat(Gujarat), Aurangabad(Maharashtra), Una(HP), West Godavari(Andhra Pradesh) and West Tripura(Tripura) are operational.

(b) & (c): Yes sir, State-wise details of proposals received for setting up of Mega Food Park Projects  under  Scheme  for  Mega Food Park during  last three years and current  year  in the country including Gujarat and Madhya Pradesh are at Annexure-II.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED  QUESTION  NO.  4943  FOR  ANSWERED  ON  23 RD JULY,2019 REGARDING GUIDELINES FOR MEGA FOOD PARKS

## SALIENT FEATURES OF THE MEGA FOOD PARKS SCHEME

## Objective of the Scheme

The primary objective of the MFPS is to provide modern infrastructure facilities  for the  food  processing  along  the  value  chain  from  the  farm  to  the  market.  It  will  include creation  of  processing  infrastructure  near the  farm,  transportation,  logistics  and  centralized processing centres.

The scheme functions with a cluster based approach based on a hub and spokes model by establishing Mega  Food  Parks.  It  includes creation of infrastructure for  primary processing and storage near the farm in the form of Primary Processing Centres (PPCs) and Collection  Centres  (CCs)  and  common  facilities  and  enabling  infrastructure  like  roads, electricity, water, Effluent Treatment Plant (ETP) facilities etc. at Central Processing Centre (CPC). These PPCs and CCs act as aggregation and storage points to feed raw material to the processing units located in the CPC. The scheme will be demand-driven, and will facilitate food processing units to meet environmental and safety standards.

## Pattern of Assistance

The scheme provides for a capital grant at the rate of 50 percent of the project cost (excluding land cost) in general areas and at the rate of 75 percent of the project cost (excluding land 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 subject to a maximum of Rs.50 crore per project.

## Land

The requirement of land for establishing the CPC is minimum 50 acres either by purchase or on lease of at least 75 years for the Central Processing Centre of the Mega Food Park.

## Key Project Components

- Enabling Basic Infrastructure Internal Roads, drainage, water supply, electricity supply including captive power plant, ETP & STP, weighbridges etc.
- Core Processing Sorting & grading, packaging, warehouses & Specialized storage, Pre-cooling and Ripening chambers, IQF, Cold chain infrastructure, Steam generation, QC Lab etc.
- Standard Design Facility Sheds for Micro and Small Enterprises (MSEs) plug and play facility for small units.
- Non - Core Infrastructure Admin buildings, training centres, canteen, workers' hostel, trade/display centre etc

## Implementing Agency

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 will not be required to form a separate SPV.

## Eligibility criteria for SPV

The main eligibility criteria of the SPVs are as under:

- i. SPV shall be a body corporate registered under the Companies Act. However, in case of State Government/ State Government entities/Cooperatives implementing the project, registration of a separate SPV under the Companies Act will not be necessary.
- ii. The promoter holding maximum equity in the SPV will be the leadpromoter. The lead promoter will be primarily responsible for coordinationwith all stakeholders including with the Ministry of Food Processing Industries to ensure effective implementation of the project.
- 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 atleast1.5 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 costas 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.
- v. Central  Government  agencies becoming shareholders in the SPV,  can  only hold upto 26 percent of equity in  the  SPV.  However,  there  will  be  no  such restriction on State Govt./ State Govt. entities/ Cooperatives.
- vi. Every SPV will publish the user charges/hiring rates for common facilities and lease rental rates for plots and factory buildings for MSEs in the Mega Food Park on their websites for wider information of the prospective investors. Rate of  plots  in  the  Mega  Food  Park  may  also  be  made  available  to  Ministry  of Food Processing Industries and State Government concerned for uploading on their  websites.  SPVs  are  not  permitted  to  sell  plots/facilities  in  Mega  Food Parks and can only give plots/facilities on lease to other food processing units.
- vii. The common facilities in the park cannot be sold or leased out. They can only be offered to units on rental basis.

## Programme Management Agency(PMA)

The Ministry will appoint a Program Management Agency (PMA) to assist it in implementation of the Scheme. The PMA will be a reputed institution with extensive experience in project development, management, financing and implementation of infrastructure projects.

## Project Management Consultant (PMC)

In addition to the PMA, for ensuring smooth implementation of projects at ground level, Ministry has drawn up a panel of Project Management Consultants (PMC) with experience in preparation of DPRs for large projects and in project implementation. Any of these Ministry's empanelled agencies may be engaged by the SPVs for preparation of DPRsand for assistance in implementation.

## Time schedule

The time schedule for completion and successful operationalization of a Mega Food Park project is 30 months from the date of final approval to the project.

ANNEXURE REFERRED TO IN REPLY TO PART (b) AND (c) OF LOK SABHA UNSTARRED  QUESTION  NO.  4943  FOR  ANSWERED  ON  23 RD   JULY,  2019 REGARDING GUIDELINES FOR MEGA FOOD PARKS

State-wise  details  of  proposals  received  for  setting  up  of  Mega  Food  Park  Projects under  Scheme  for  Mega  Food  Park  during  last  three  years  and  current  year in  the country including Gujarat and Madhya Pradesh.

| Sl. No.   | State             |   2016-17 Received (Nos) |   2017-18 Received (Nos) |   2018-19 Received (Nos) |
|-----------|-------------------|--------------------------|--------------------------|--------------------------|
| 1.        | Andhra Pradesh    |                        1 |                        0 |                        0 |
| 2.        | Arunachal Pradesh |                        1 |                        1 |                        0 |
| 3.        | Assam             |                        2 |                        0 |                        0 |
| 4.        | Bihar             |                        1 |                        0 |                        0 |
| 5.        | Chhattisgarh      |                        1 |                        0 |                        0 |
| 6.        | Goa               |                        0 |                        0 |                        0 |
| 7.        | Gujarat           |                        4 |                        0 |                        0 |
| 8.        | Haryana           |                        1 |                        0 |                        0 |
| 9.        | Himachal Pradesh  |                        0 |                        0 |                        0 |
| 10.       | Jammu &Kashmir    |                        0 |                        0 |                        0 |
| 11.       | Jharkhand         |                        2 |                        0 |                        0 |
| 12.       | Karnataka         |                        3 |                        0 |                        0 |
| 13.       | Kerala            |                        0 |                        0 |                        0 |
| 14.       | Madhya Pradesh    |                        3 |                        0 |                        0 |
| 15.       | Maharashtra       |                        9 |                        0 |                        0 |
| 16.       | Meghalaya         |                        0 |                        1 |                        1 |
| 17.       | Manipur           |                        0 |                        1 |                        2 |
| 18.       | Mizoram           |                        0 |                        0 |                        0 |
| 19.       | Nagaland          |                        3 |                        0 |                        0 |
| 20.       | Odisha            |                        2 |                        0 |                        0 |
| 21.       | Punjab            |                        0 |                        0 |                        0 |
| 22.       | Rajasthan         |                        2 |                        0 |                        0 |
| 23.       | Sikkim            |                        0 |                        0 |                        0 |
| 24.       | Tamil Nadu        |                        1 |                        0 |                        0 |
| 25.       | Telangana         |                        6 |                        0 |                        0 |
| 26.       | Tripura           |                        0 |                        0 |                        0 |
| 27.       | Uttarakhand       |                        0 |                        0 |                        0 |
| 28.       | Uttar Pradesh     |                        9 |                        7 |                        1 |
| 29.       | West Bengal       |                        2 |                        0 |                        1 |
| 30.       | All UTs           |                        1 |                        0 |                        0 |
|           | Total             |                       54 |                       10 |                        5 |

Note:-No EoI has been invited during financial year 2019-20 .