Mega Food Park

Salient Features of the Scheme

o Holistic & cluster based approach- centralized facilities for key activities which are technology and capital intensive

o Specific focus on setting up backward linkages for establishing viable supply chains - Provision for farm proximate aggregation & minimal processing infrastructure in the form of collection centers and primary processing centers. The primary processing centers shall be linked to central processing center and shall also have its own forward linkages to cater to fresh retail market

o Infrastructure needs of a viable Food park /Zone estimated to be about Rs.1200 million(US $ 30 million) including farm proximate primary processing facilities

o Emphasis on economic viability

o Enabling Infrastructure Creation along the supply chain

o Creation of Central Processing Center, Primary Processing Centers and Farm Collection Centers

o Components of basic enabling infrastructure and common technical facilities to be assisted under the scheme

o Project to be implemented with private led initiative through a Special Purpose Vehicle (SPV)

o SPV to be a Body Corporate registered under the Companies Act

o Composition of SPV :

o at least three entrepreneurs / business units independent of each other with no common directors

o at least one should be from the food processing sector with at least 26% equity in the SPV

o SPVs to bring in at least 20% of the project cost, including the cost of land, as their contribution- 10% in case of hilly & ITDP notified areas

o Minimum Combined net worth of the shareholders in the SPV should be Rs. 50 Cr - Food Processor should have at least 10 Cr of net worth

o Government agencies may participate in SPV holding less than 26% equity

o Financial Assistance from Ministry

o Limited to non-land component of the project

o 50% of project cost limited to Rs 50 crore in general areas

o 75% of project cost limited to Rs 50 crore in difficult & hilly areas and ITDP notified areas

o Program Management Agency (PMA) to assist the Ministry in implementation

o Project Management Consultant (PMC) to assist SPV in project development and implementation

o PMC to be appointed by SPV from empanelled list of MFPI

Project Components

o Core Processing Facilities

o Collection Centre, Primary Processing Centers: Sorting and grading, packaging facilities , dry warehouses, specialized cold stores including pre-cooling chambers, ripening chambers , reefer vans, mobile pre-coolers and collection vans

o Central Processing Centers: Sorting and grading, Packaging unit, Dry warehouses, Specialized storage facilities including CA Chambers, Variable humidity stores, Pre-cooling chambers, Ripening chambers etc, Cold chain infrastructure, Irradiation facilities, Steam generation & sterilization units, Food incubation-cum-development centers etc.

o At least 50% of the project cost (excluding land cost) shall be towards creation of above mentioned facilities

o Factory Buildings

o Provision For MSEs – It will consist of standard factory sheds for Micro and Small Enterprises (MSEs) which are built on a maximum of 10 per cent of the area of CPC as part of plug and play facilities for MSEs

o Enabling Basic Infrastructure

o Roads, drainage, water supply, electricity supply ETP, logistics facilities, weighbridges etc

o Non –core Infrastructure

o Administrative buildings, training centers, canteen, workers’ hostel, trade/display center etc: Cost of non-core infrastructure facilities, not exceeding 10% of the project cost, would be eligible for grant purpose

o Project Implementation Expense

o Cost of hiring project management consultants (PMC) by SPV – limited to 2% of eligible grant amount