Lok Sabha Question No. 2482 (UNSTARRED), answered on 2021-08-03
Subject: Issues Related to MFP Scheme
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Khagen Murmu

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 2482 ANSWERED ON 03 RD  AUGUST, 2021

## ISSUES RELATED TO MFP SCHEME

## 2482.  SHRI KHAGEN MURMU:

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

- (a) whether it is a fact that many developers who built parks under the Mega Food Park (MFP) scheme without the necessary experience or understanding of what the industry required  now  find  themselves  with  underutilised  infrastructure,  struggling  to  attract hugely cost-sensitive small manufacturers who can find cheaper options elsewhere;
- (b) if so, whether the Government is working on increasing its involvement in all stages of projects, from sanctioning to implementation; and
- (c) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI PRAHLAD SINGH PATEL)

(a) to (c). Ministry of Food Processing Industries (MoFPI) has been implementing Mega Food  Park(MFP)  Scheme  to  provide  modern  infrastructure  facilities  for  food  processing industries along the value chain from farm to the market. Ministry provides financial assistance for setting up of Mega Food Parks in the country. The proposals are invited through Expression of Interest (EoI) which are approved on merit as per the criterion specified under the applicable guidelines of the scheme.

The Scheme aims to facilitate the establishment of a strong food processing industry backed by an efficient supply chain, which may include collection centres, primary processing centres  and  cold  chain  infrastructure.  The  food  processing  units  are  set  up  at  a  Central Processing Centre (CPC) with need based common infrastructure such as (i) Basic enabling infrastructure  like  developed  land/plots,  roads,  drainage,  water  supply,  electricity,  effluent treatment  plant  etc;(ii)  Common  processing  and  preservation  infrastructure  like  warehouse, cold storage, deep freezers, laboratory, common food processing line, packaging line etc; (iii) Non- core infrastructure as common support facilities like Administrative building, Canteen, Workers' hostel, trade facilitation centres etc and (iv) Standard factory shed as a part of plug and  play  facilities  for  Micro  and  Small  enterprises(MSEs).  Due  to  these  reasons,  cost  of developed land inside the park may be higher than undeveloped land outside the park. However, these facilities enables faster operationalisation of new units in MFPs, reduces their cost of operations  and  gives  them  access  to  essential  facilities  within  the  park.  Moreover,  for  cost sensitive small manufacturers like MSEs, MFP provides ready to use factory sheds as a part of plug and play facility.

Ministry  of  Food  Processing  Industries  has  taken  various  measures  for  expediting  the implementation  of  sanctioned  projects  like-  (i)  Holding  regular  review  meetings  with  the promoters  to  help  remove  bottlenecks  in  implementation;  (ii)  Facilitating  the  promoters  in obtaining  the  required  statutory  clearances  from  concerned  authority;  (iii)  Modifying  the provisions of the scheme guidelines to facilitate implementation of the project;(iv) Implementing  the  scheme  for  Creation/Expansion  of  Food  Processing  and  Preservation Capacities  as  a  sub-scheme  of  Pradhan  Mantri  Kisan  SAMPADA  Yojana  which  provides financial  assistance  for  setting  up  food  processing  units  in  Mega  Food  Parks;  (v)  Creating awareness of benefits available under the schemes for establishment of food processing units in the park.

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