Lok Sabha Question No. 937 (UNSTARRED), answered on 2018-07-24
Subject: Setting up of Mega Food Parks
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: RODMAL NAGAR, KAMLA DEVI PATLE

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 937

ANSWERED ON 24 TH  JULY, 2018

## SETTING UP OF MEGA FOOD PARKS

## 937. SHRI NAGAR RODMAL: SHRIMATI KAMLA DEVI PAATLE:

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

- (a) the number of mega food parks set up by the Government in the country, State/UT-wise;
- (b) the steps taken/being taken by the Government to set up new mega food parks in Madhya Pradesh;
- (c) the  details  of  the  conditions  fixed  by  the  Government  for  setting  up  of  new  Mega  Food Parks;
- (d) the  details  of  food  parks  proposed  to  be  set  up  in  the  current  financial  year  Statewise/location-wise and the criteria adopted to set up food parks;
- (e) whether the Government has received proposals from various State Governments including Chhattisgarh with regard to setting up of food parks in their respective States; and
- (f) if so, the details thereof and the reaction of the Government thereto ?

## ANSWER

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

- (a): Government has approved setting up of 42 (Forty Two) Mega Food Parks for  creation of modern infrastructure for food processing industries in the country. State wise details of Mega Food Parks approved by Ministry of Food Processing Industries in the country are at Annexure-I.

(b) to (f): The proposals under scheme for Mega Food Park for setting up of Mega Food Parks in the country  are  invited  through  Expression  of  Interest  (EOI)  from  time  to  time.  Selection  of  suitable proposals  for  these  projects  is  done  as  per  the  Scheme  guidelines,  based  on  the  merit,  through  a stringent appraisal process as per the prefixed criteria. However, as on date, there is no vacant slot available for setting up of new Mega Food Parks in the country. Ministry has not issued any fresh Expression of Interest to seek proposals for setting of new mega food parks under the scheme for Mega Food Park due to non availability of vacant slots. Hence, no proposal has been received from states  including Chhattisgarh for setting up of new mega Food Parks.   The salient features of the scheme for  setting  of  new  Mega  Food  Parks  are  at Annexure-II .  The  detailed  Guidelines  of  the Scheme of the Mega Food Parks (MFPs) dated 21.07.2016 are also available on Ministry's website: www.mofpi.nic.in

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## ANNEXURE REFERRED TO IN REPLY TO  PART  (a)  OF  LOK  SABHA  UNSTARRED QUESTION  NO.  937  FOR  ANSWER  ON  24.07.2018  REGARDING  'SETTING  UP  OF MEGA FOOD PARKS'

## State wise details of Mega Food Parks sanction by Ministry of Food Processing Industries in the country

| Sl. No.   | State             |   Number of Mega Food Parks |
|-----------|-------------------|-----------------------------|
| 1.        | Andhra Pradesh    |                           3 |
| 2.        | Arunachal Pradesh |                           1 |
| 3.        | Assam             |                           1 |
| 4.        | Bihar             |                           1 |
| 5.        | Chhattisgarh      |                           1 |
| 6.        | Gujarat           |                           2 |
| 7.        | Haryana           |                           2 |
| 8.        | Himachal Pradesh  |                           1 |
| 9.        | Jammu &Kashmir    |                           1 |
| 10.       | Jharkhand         |                           1 |
| 11.       | Karnataka         |                           2 |
| 12.       | Kerala            |                           2 |
| 13.       | Madhya Pradesh    |                           2 |
| 14.       | Maharashtra       |                           3 |
| 15.       | Mizoram           |                           1 |
| 16.       | Nagaland          |                           1 |
| 17.       | Odisha            |                           2 |
| 18.       | Punjab            |                           3 |
| 19.       | Rajasthan         |                           1 |
| 20.       | Telangana         |                           4 |
| 21.       | Tripura           |                           1 |
| 22.       | Uttarakhand       |                           2 |
| 23.       | Uttar Pradesh     |                           3 |
| 24.       | West Bengal       |                           1 |
|           | Total             |                          42 |

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  TO  (f)  OF  LOK  SABHA UNSTARRED QUESTION NO. 937 FOR ANSWER ON 24.07.2018 REGARDING 'SETTING UP OF 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, Precooling  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  lead  promoter.  The  lead promoter will be primarily responsible for co-ordination with 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 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.
- 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  DPRs  and  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.