Mega Food Parks -Food Startups Business Opportunity.

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Mega Food Parks -Food Processing Industry-Startups Business Opportunity.


The Scheme of Mega Food Park aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers so as to ensure maximizing value addition, minimizing wastage, increasing farmers income and creating employment opportunities particularly in rural sector. The Mega Food Park Scheme is based on “Cluster” approach and envisages creation of state of art support infrastructure in a well-defined agri / horticultural zone for setting up of modern food processing units in the industrial plots provided in the park with well-established supply chain. Mega food park typically consist of supply chain infrastructure including collection centers, primary processing centers, central processing centers, cold chain and around 25-30 fully developed plots for entrepreneurs to set up food processing units.

               The Mega Food Park project is implemented by a Special Purpose Vehicle (SPV) which is a Body Corporate registered under the Companies Act. State Government, State Government entities and Cooperatives are not required to form a separate SPV for implementation of Mega Food Park project. Subject to fulfillment of the conditions of the Scheme Guidelines, the funds are released to the SPVs. To view status of 37 Mega Food Parks funded under the scheme. 18 has started its operations, as below:-
1. Srini Mega Food Park, Chittoor, Andhra Pradesh.
2. Godavari Mega Aqua Park, West Godavari, Andhra Pradesh.
3. North East Mega Food Park, Nalbari, Assam.
4. Gujarat Agro Mega Food Park, Surat, Gujarat.
5. Cremica mega Food park, Una, Himachal Pradesh.
6. Integrated Mega Food Park, Tumkur, Karnataka.
7. Indus Mega Food Park, Khargoan, Madhya Pradesh.
8. Avantee Mega Food Park, Dewas, Madhya Pradesh.
9. Paithan Mega Food Park, Aurangabad, Maharashtra.
10. Satara Mega Food Park, Satara, Maharashtra.
11. MITS Mega Food Park, Rayagada, Odisha.
12. International Mega Food Park, Fazilka, Punjab.
13. Greentech Mega Food park, Ajmer, Rajasthan.
14. Smart Agro Mega Food Park, Nizamabad, Telangana.
15. Tripura Mega Food Park, West Tripura, Tripura.
16. Patanjali Food and Herbal Park, Haridwar, Uttarakhand.
17. Himalayan Mega Food Park, Udham Singh Nagar, Uttarakhand.
18. Jangipur Bengal Mega Food Park, Murshidabad, West Bengal.
                    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 centers. The main feature of the Scheme is a cluster based approach. The scheme will be demand-driven and will facilitate food processing units to meet environmental and safety standards.

                 The Scheme aims to facilitate the establishment of a strong food processing industry backed by an efficient supply chain, which would include collection centers, primary processing centers and cold chain infrastructure. The food
processing units, under the scheme, would be located at a Central Processing Centre (CPC) with need based common infrastructure required for processing, packaging, environmental protection systems, quality control labs, trade facilitation centers, etc.
                 The extent of land required for establishing the CPC is estimated to be between 50- 100 acres, though the actual requirement of land would depend upon the business plan of investor(s), which may vary from region to region. CPC would be supported by Primary Processing Centers (PPC) and Collection Centers (CCs) in identified locations based on a techno-feasibility study, adequate to meet the raw material requirements of the CPC. The land required for setting up of PPCs and CCs at various locations would be in addition to land required for setting up the CPC.

                     The spirit of the guidelines of the Mega Food Parks Scheme is to facilitate setting up of only food processing industries. Accordingly, only food processing industries that make food products fit for human / animal consumption may be permitted to be set up in the Mega Food Parks. Packaging facilities of food products as ancillary to the food processing industries will also be eligible for setting up in the Mega Food Parks.
Central Processing Center: Cost of civil work & equipments for common facilities like testing laboratory, cleaning, grading, sorting and packing facilities, dry warehouses, specialized storage facilities, cold storage including Controlled Atmosphere Chambers, Pressure Ventilators, variable humidity stores, pre-cooling chambers, ripening chambers etc., cold chain infrastructure including reefer vans, packaging unit, irradiation facilities, steam sterilization units, steam generating units, Food incubation cum development centers etc.
4.3.2 Primary Processing Centers and Farm Proximate Collection Centers: These shall have components like cleaning, grading, sorting and packing facilities (including equipment), dry warehouses, specialized cold stores including pre-cooling chambers, ripening chambers (including equipment), reefer vans, mobile pre-coolers, mobile collection vans




Enabling Basic Infrastructure
        It will include site development including development of industrial plots,
boundary wall, roads, drainage, water supply, electricity supply including 
 captive power plant, effluent treatment plant, telecommunication lines, 
 parking bay including traffic management system, weighbridges etc. at the 
PPC and CPC level. However, of the total proposed cost of captive power
 plant, cost not exceeding Rs.10 crore shall be considered as eligible project 
cost for grant assessment. Any additional cost towards setting up of captive 
power plantwould be required to be met exclusively from SPV’s contribution 
through equity and debt. The SPV has to demonstrate a firm plan to ensure
 good quality and assured power supply to prospective units in the Park.
Non-Core Infrastructure
       It will consist of support infrastructure such as administrative buildings,
 training center including equipment, trade and display center, crèche, 
canteen, worker’s hostel, offices of service providers, labour rest and
 recreation facilities, marketing support system, etc. However, the cost of 
non-core infrastructure facilities not exceeding 10 percent of the eligible 
project cost, would be eligible for grant purpose.

The Food Processing unit(s) to be set up by the Anchor Investor in the Mega 
Food Park will be completed and commissioned along with the commissioning
 of the Mega Food Park project by the SPV.
SPVs / IAs are not permitted to sell the plots in Mega Food Parks. The plots 
can only be given on lease to other entrepreneurs for setting up of food 
processing units in the Park.



The common facilities in the park cannot be sold or leased out. 
They can only be offered to units on rental basis.
 Every SPV / IA 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.
 This information will also be made available to Ministry of Food Processing 
Industries and State Government concerned for uploading on their websites.
The Implementing Agency would be responsible for the following:
i. To formulate the Detailed Project Report (DPR) and execute the project in a transparent, efficient and timely manner.
ii. To procure/purchase land and ensure external infrastructure linkages for the
 project.
iii. To obtain statutory approvals/clearances including environmental clearances,
 which are prerequisite for commencement and operation of the Project.
iv. To achieve financial closure and ensure completion of the project.
v. To own and maintain the common infrastructure including common facilities.
vi. To receive grant-in-aid under the Scheme, and to ensure its utilization in a transparent and judicious manner.
vii. To maintain proper accounts of the project implementation and the 
maintenance of infrastructure and common facilities after commissioning 
of the project.

 Manmath Biradar

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