MEGA FOOD PARK

Mega Food Parks

During Eleventh Plan, Government approved taking up of 30 Mega Food Parks Projects in the country. All the 30 Mega Food Park projects have been approved by the Ministry of Food Processing Industries from the eligible proposals received against Expression of Interest for selection of projects. The experience of the implementation of the scheme revealed that the following are the main issues being faced during implementation by the Mega Food Parks projects:             i.  Acquiring of minimum 50 acre land with Change of Land Use for the project and obtaining State Government permission for subleasing the plots.            ii.  Obtaining sanction of the term loan from the banks to fund the implementation of the project.           iii.  Delays in getting necessary State Government statutory and other clearances.           iv.  Public Sector Undertakings (PSUs) in the SPVs being unable to take a lead role in execution of the project due to private character of the SPV and capping of the participation of PSUs at 26% of the total equity.            v.  Difficulty in finding participation of Food Processor in SPV with minimum of 26% equity with net worth of Rs. 10 crore.           vi.        Lack of cohesiveness amongst the promoters in some of the projects leading to legal disputes and delay in contribution of equity in the SPV.               In the North Eastern Region, total three Mega Food Park projects have been approved by the Ministry during eleventh Plan in the States of Assam, Tripura and Sikkim. Preservation of Perishable Fruits and Vegetables A nation-wide study on quantitative assessment of harvest and post-harvest losses for 46 agricultural Crops in 106 randomly selected districts was carried out by Central Institute of Post-Harvest Engineering & Technology, (CIPHET) Ludhiana, an ICAR institution. As per the report released in 2010, the extent of harvest and post-harvest losses in fruits vary from 5.8% to 18% and in case of vegetables from 6.88% to 12.98%. Ministry of Food Processing Industries promotes adoption of modern food processing technologies through its schemes viz. (i) Scheme for Infrastructure Development with components of Mega Food Park and Cold Chain, Value Addition & Preservation Infrastructure (ii) Technology Up-gradation/Establishment/ Modernization of Food Processing Industries (FPIs). Ministry of Food processing Industries has entered into an agreement in 2012 with France for promoting co-operation in the field of food processing and allied sectors. Ministry has launched a centrally sponsored scheme-National Mission on Food Processing (NMFP) in 12th Plan. The mission has several schemes including (i) Technology Up-gradation/Establishment/Modernization of Food Processing Industries (ii) Setting up of Primary Processing Centres/collection Centres (iii) Reefer Vehicles. These schemes of the mission are implemented by State Governments and they have full powers to receive, sanction and release funds to the eligible applicants. Under Technology Upgradation Scheme (TUS), grant-in-aid has been sanctioned by the Ministry to 3438 units in 11th plan and 2509 in 12th plan for setting up / modernization of food processing industries. Vision Document – 2015 In order to promote food processing industries, increase level of processing and exploit the potential of domestic and international market for processed food products, Vision Document-2015 was prepared by the Ministry, which envisaged trebling the size of investment in the processed food sector by increasing the level of processing of perishables from 6% to 20%, value addition from 20% to 35% and share in global food trade from 1.5% to 3% by 2015. To achieve these targets, an investment of Rs. 100,000 crore was required by the year 2015. Out of which, the share of Government was Rs.10,000 crore. During the 11th Five Year Plan, against the proposal of allocation of Rs. 4816 crore of the Ministry, a Plan outlay of Rs. 4041 crore only was made for various Programmes / Schemes of the Ministry. However, the actual expenditure incurred on implementing the various schemes of Ministry of Food Processing Industries during the 11th Plan was Rs. 1596.88 crore only. During 11th Five Year Plan, the Central Sector Schemes for Infrastructure Development (a) Mega Food Parks (b) Integrated Cold Chain, Value Addition and Preservation Infrastructure, and (c) Setting up / Modernization of Abattoirs, Scheme of Technology up-gradation/ Establishment/ Modernization of Food Processing Industries, Scheme for Quality Assurance, Codex Standards, Research & Development and Other Promotional Activities, Scheme for Human Resource Development and Scheme of Strengthening of Institutions were implemented by the Ministry for development of food processing industries in the country. Storage Facilities As per the study of Central Institute of Post-Harvest Engineering and Technology (CIPHET) (ICAR, Ludhiana), published in 2010, based on a nationwide sample survey including Himachal Pradesh, annual wastage of fruits is estimated in the range of 5.8% to 18% having value of Rs. 7437 crores annually. The losses during transportation of fruits range from 1.1 to 2.8%.                With the objective of reducing post-harvest losses by providing integrated cold chain and preservation infrastructure facilities without any break from the farm gate to the consumer, Ministry of Food Processing Industries is implementing a Central Sector Scheme of Cold Chain, Value Addition and Preservation Infrastructure since 2008-09 in the country including Himachal Pradesh. The financial assistance @ 50% of the total cost of plant & machinery and technical civil works in general areas and 75% for NE region and difficult areas (North-Eastern States, Sikkim, J&K, Himachal Pradesh and Uttarakhand) subject to a maximum grant-in-aid of Rs 10 Crore per project is provided for setting up the cold chain infrastructure in the country. Integrated cold chain and preservation infrastructure can be set up by individuals, groups of entrepreneurs, cooperative societies, Self Help Groups (SHGs), Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc. Under the scheme of Cold Chain, Value Addition and Preservation Infrastructure, the Ministry has sanctioned 121 cold chain projects for implementation in the country. Out of these, 9 projects have been sanctioned in Himachal Pradesh. Further, the Ministry has also launched a Centrally Sponsored Scheme i.e. National Mission on Food Processing (NMFP) during 12th Plan. The NMFP is being implemented by the State/UT governments including Himachal Pradesh. Under the Mission, financial assistance is provided for setting up cold chain infrastructure through following schemes: (i)                 Scheme for Cold Chain, Value Addition and Preservation Infrastructure for Non- Horticultural Products:- For setting up of cold chain projects for non-horticulture produce like dairy, meat, poultry, fish etc., the financial assistance is provided as (a) Capital Subsidy: Grant-in-aid @35% of the bank appraised project cost for general areas, and @ 50% of the project cost for difficult areas including North-Eastern region, subject to maximum of Rs. 5 crore and (b) Interest Subsidy: @ 6% per annum subject to a maximum of Rs. 2.00 crore per project or actual interest accrued on term loan, whichever is lower, for a period of 5 year from completion of the project for general areas, and @ 7% per annum subject to a maximum of Rs. 3.00 crore per project or actual interest accrued on term loan, whichever is lower, for a period of 7 years from completion of the project for difficult areas including North-Eastern Region and hilly States. (ii)  Scheme for Creating Primary Processing Centres / Collection Centres in Rural Areas:-Under this scheme financial assistance is provided for setting up processing and preservation facilities in rural areas to enhance shelf life of perishable produce. Admissible grant-in-aid under the scheme is @ 50% of the eligible project cost for the general areas and 75% in North-Eastern Region, ITDP & Difficult Areas including hilly States, respectively subject to a maximum of Rs. 2.5 Crore. (iii) Reefer Vehicles:- Financial assistance to standalone reefer vehicle(s) and mobile pre-cooling van(s) for carrying & transporting, both horticultural & non-horticultural produce is provided under the scheme as credit linked back ended grants-in-aid @ 50% of the cost of New Reefer Vehicle(s)/Mobile pre-cooling van(s)upto a maximum of Rs. 50.00 lakh. In addition, National Horticulture Mission (NHM), National Horticulture Board (NHB), and National Cooperative Development Corporation (NCDC) under Department of Agriculture and Cooperation, Ministry of Agriculture and Agricultural and Processed Food Products Export Development Authority (APEDA) under Department of Commerce, Ministry of Commerce and Industries, Government of India are also providing assistance for setting up cold storages under their respective schemes.