Lok Sabha Question No. 374 (UNSTARRED), answered on 2020-02-04
Subject: Food Parks Scheme
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Ravi Kishan Shukla, Nishikant  Dubey, Gowdar Mallikarjunappa Siddeshwara

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 374

ANSWERED ON 04 TH  FEBRUARY, 2020

## FOOD PARKS SCHEME

## 374. SHRI RAVI KISHAN: DR.  NISHIKANT DUBEY: SHRI G.M. SIDDESHWAR:

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

- (a) Whether the Government has implemented Food Parks scheme in the country to create modern infrastructure for food processing and if so, the details thereof;
- (b) the  details  of  parks  identified/established/approved  over  the  last  two  years  along  with financial assistance or funds provided to such parks; and
- (c) whether any State Government has requested the Union Government to set up food parks and if so, the details thereof?

## ANSWER

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

(a): Ministry of Food Processing Industries is implementing Mega Food Park Scheme (MFPS) to create modern infrastructure for the food processing industries since 2008. This scheme is now a  component  of  the  new  Central  Sector  Umbrella  Scheme  -  Pradhan  Mantri  Kisan  Sampada Yojana (PMKSY). The Mega Food Park Scheme (MFPS) aims at providing modern infrastructure facilities for food processing along the value chain from farm to market. The salient features of the scheme is detailed in Annexure-I .

- (b): Total  42  Mega  Food  Parks  (MFPs)  were  envisaged  by  the  Government.  As  on  date, Ministry has approved  39  MFPs  in  24  states/UTs which  are under various stages of implementation. Out of this 18 MFPs are operational. Details of MFPs made operational over the last two financial year and current financial years along with Grant-in-aid approved & released are at Annexure-II. Details of Mega Food Parks accorded final approval by the Ministry over the last two financial years and current financial year along with Grant-in-aid approved & released are at Annexure-III .

(c): Ministry has accorded final approval to 9 Mega Food Park Projects being implemented by State  Government  entities.  The  details  of  these  projects  are  at Annexure-IV. At  present  no proposal  of  state  government  entity  is  pending  for  consideration  with  the  Ministry  under  the scheme.

*****

ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 374 FOR ANSWER ON 04 TH  FEBRUARY, 2020 REGARDING 'FOOD PARKS SCHEME'.

## SALIENT FEATURES OF THE SCHEME GUIDELINES OF MEGA FOOD PARK.

## 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 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 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 empaneled 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.

ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 374 FOR ANSWER ON 04 TH  FEBRUARY, 2020 REGARDING 'FOOD PARKS SCHEME'.

Details of Mega Food Parks made operational over the last two financial years and current financial year along with Grant-in-aid approved & released

|   Sl. No. | Name of SPV/IA of MFP project                         | District& State                | Date of Operationalization   |   Total Grant-in-aid approved (Rs. In Cr) |   Total Grant-in- aid released (Rs. In Cr) |
|-----------|-------------------------------------------------------|--------------------------------|------------------------------|-------------------------------------------|--------------------------------------------|
|         1 | MITS Mega Food Park Ltd                               | Rayagada, Odisha               | 1-Jun-2017                   |                                     50    |                                      44.95 |
|         2 | Satara Mega Food Park Pvt                             | Satara, Maharshtra             | 1-Mar-2018                   |                                     50    |                                      44.49 |
|         3 | Ltd Greentech Mega Food Park Ltd                      | Ajmer, Rajasthan               | 29-Mar-2018                  |                                     49.88 |                                      43.18 |
|         4 | Himalayan Food Park Pvt Ltd                           | Udham Singh Nagar, Uttarakhand | 8-Apr-2018                   |                                     48.12 |                                      41.8  |
|         5 | Gujarat Agro Infrastructure                           | Surat, Gujarat                 | 29-Oct-2018                  |                                     50    |                                      42.45 |
|         6 | Mega Food Park Pvt Ltd Paithan Mega Food Park Pvt Ltd | Aurangabad, Maharashtra        | 15-Nov-2018                  |                                     48.82 |                                      41.99 |
|         7 | Cremica Food Park Pvt Ltd                             | Una, Himachal Pradesh          | 10-Feb-2019                  |                                     50    |                                      42.72 |
|         8 | Godavari Mega Aqua Food Park Pvt Ltd                  | West Godavari, Andhra Pradesh  | 12-Feb-2019                  |                                     50    |                                      44.53 |
|         9 | Sikaria Mega Food Park (P) Ltd                        | West Tripura, Tripura          | 20-Feb-2019                  |                                     48.39 |                                      43.5  |
|        10 | Smart Agro Food Park Pvt Ltd                          | Nizamabad, Telangana           | 6-Sep-2019                   |                                     50    |                                      44.56 |
|        11 | Avantee Mega Food Park Pvt Ltd                        | Dewas, Madhya Pradesh          | 5-Dec-2019                   |                                     50    |                                      38.88 |

ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 374 FOR ANSWER ON 04 TH  FEBRUARY, 2020 REGARDING 'FOOD PARKS SCHEME'.

Details  of  Mega  Food  Parks  accorded  final  approval  by  the  Ministry  over  the  last  two financial years and current financial year along with Grant-in-aid approved & released

|   Sl. No. | Name of SPV/IA of MFP project                                         | District& State                  | Date of Final Approval   |   Total Grant-in-aid approved (Rs. In Cr) |   Total Grant-in- aid released (Rs. In Cr) |
|-----------|-----------------------------------------------------------------------|----------------------------------|--------------------------|-------------------------------------------|--------------------------------------------|
|         1 | Fanidhar Mega Food Park Pvt Ltd                                       | Mehsana, Gujarat                 | 16-Aug-2017              |                                    50     |                                      15    |
|         2 | DoysAgri Resources Pvt Ltd                                            | Dimapur, Nagaland                | 16-Aug-2017              |                                    50     |                                      29.78 |
|         3 | Favorich Infra Pvt Ltd                                                | Mandya, Karnataka                | 19-Dec-2017              |                                    50     |                                      15    |
|         4 | Haryana State Cooperative Supply and Marketing Federation Ltd (HAFED) | Rohtak, Haryana                  | 21-Feb-2018              |                                    50     |                                      15    |
|         5 | Patanjali Food& Herbal Park Noida Pvt Ltd                             | GautamBuddh Nagar, Uttar Pradesh | 20-Sep-2018              |                                    50     |                                       0    |
|         6 | Nandvan Mega Food Park Pvt Ltd                                        | Mathura, Uttar Pradesh           | 28-Jan-2019              |                                    50     |                                       0    |
|         7 | Rongoge Mega Food Park Pvt Ltd                                        | Papum Pare, Arunachal Pradesh    | 12-Sep-2019              |                                    43.25  |                                       0    |
|         8 | Manipur Food Industries Corporation Ltd                               | Thoubal, Manipur                 | 29-Jan-2020              |                                    43.254 |                                       0    |

ANNEXURE REFERRED TO IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION NO. 374 FOR ANSWER ON 04 TH  FEBRUARY, 2020 REGARDING 'FOOD PARKS SCHEME'.

Details  of  Mega  Food  Parks,  along  with  Grant-in-aid  approved  &  released,  being implemented by State Government entities which have been accorded final approval by the Ministry

|   Sl. No. | Name of SPV/IA of MFP project                                                    | District& State         | Date of Final Approval   |   Total Grant-in- aid approved (Rs. In Cr) |   Total Grant-in- aid released (Rs. In Cr) |
|-----------|----------------------------------------------------------------------------------|-------------------------|--------------------------|--------------------------------------------|--------------------------------------------|
|         1 | Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC) | Sonipat, Haryana        | 6-Nov-2015               |                                     44.94  |                                      27.88 |
|         2 | Odisha Industrial Infrastructure Development Corporation (IDCO)                  | Khordha, Odisha         | 6-Nov-2015               |                                     50     |                                      37.8  |
|         3 | Kerala Industrial Infrastructure Development Corporation (KINFRA)                | Palakkad, Kerala        | 27-Nov-2015              |                                     40.57  |                                      37.72 |
|         4 | Kerala State Industrial Development Corporation Ltd (KSIDC)                      | Alappuzha, Kerala       | 27-Nov-2015              |                                     50     |                                      28.8  |
|         5 | Punjab Agro Industries Corporation Ltd (PAIC)                                    | Ludhiana, Punjab        | 27-Nov-2015              |                                     50     |                                      37.62 |
|         6 | Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC)                 | Krishna, Andhra Pradesh | 31-Dec-2015              |                                     43.55  |                                      28.49 |
|         7 | Telangana State Industrial Infrastructure Corporation Ltd (TSIIC)                | Khammam, Telangana      | 5-Feb-2016               |                                     50     |                                      28.49 |
|         8 | Haryana State Cooperative Supply and Marketing Federation Ltd (HAFED)            | Rohtak, Haryana         | 21-Feb-2018              |                                     50     |                                      15    |
|         9 | Manipur Food Industries Corporation Ltd                                          | Thoubal, Manipur        | 29-Jan-2020              |                                     43.254 |                                       0    |