Modifications in Infrastructure Development Scheme for Mega Food Parks

Modifications in Infrastructure Development Scheme for Mega Food Parks

Question - Infrastructure development is a must for any sector of the economy to progress well. Discuss the modifications in the scheme of infrastructure development for food processing through Mega Food Parks.

CCEA chaired by the PM has approved modifications in the Mega Food Park scheme of infrastructure development for food processing

Benefits of Modifications

• These modifications are aimed at streamlining the scheme implementation and making it seamless

• Modification is also expected to trigger further investment in food processing sector

Nature of Modifications

• Scheme will be implemented through a market driven approach in line with domestic and international demands

• Innovative supply chain management will be the key factor in the scheme implementation

• Project also proposes that processing and preservation of fragile, perishable food products will be provided weightage in the selection

• Each Mega Food Park is aiming to generate the following financial outcomes:

• Direct benefit to 6,000 farmers/producers and indirect benefits to 25,000 farmers

• Estimated investment in every project to be around INR 100 crore in common facilities; additional investment of INR 250 crore to be leveraged

• Estimated turnover of the projects to be INR 500 crore

• Around 30 food processing units will be set up for every project

• Modification will ensure Centre is at par with states by:

- Removing limitation of maximum 26% on equity holding in SPV
- Allowing government agencies to become shareholders in SPV without limits on shareholding

Facts and Stats

• Infrastructure Development Scheme for Mega Food Parks aims at provision of updated infrastructure facilities for food processing companies

• According tot he scheme, ownership and management of Mega Food Park will remain with SPV which has equity holders or anchor investor along with ancillaries

• Farmer organisations in SPV will be encouraged

• Anchor investor or promoters of SPV are needed to establish a minimum of one food processing unit in the park with investment of not lower than INR 10 crore