Press Information Bureau
Government of India
Cabinet Committee on Economic Affairs (CCEA)

25-October-2011 15:08 IST

The Cabinet Committee on Economic Affairs has approved setting up 15 new Mega Food Park Projects under the Infrastructure Development Scheme (in addition to 15 ongoing projects), involving a total Government grant of Rs. 787.50 Crore.

The setting up of 15 new Mega Food Parks will result in creation of state of the art infrastructure in major parts of the country with efficient supply chain management from farm gate to retail outlets. The projects are expected to bring about substantial reduction of wastage, value addition, employment generation and increased income for the farmers.

The Scheme will be implemented in a market driven manner commensurate with both global and national demands. Innovative supply chain management will be the key to implementation of this scheme.

Expressions of Interest (EOI) will be invited from the prospective entrepreneurs. As per the procedure laid down in the scheme guidelines, the most suitable proposal will be selected The timeline for project implementation in respect of each Mega Food Park is 24 months from the date of release of first tranche of the first instalment.

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

i. Expected to benefit 6000 farmers / producers directly and 25000-30000 farmers indirectly,
ii. Estimated investment in each project will be about Rs. 100 Crore. in common facilities and will leverage an additional investments about of Rs. 250 Crore.

iii. Expected annual turnover of each project will be Rs. 500.00 Crore.

iv. Each Mega Food Park will generate about 40,000 direct and indirect jobs.

v. In each Project, an estimated number of 30-40 food processing industries are expected to be set up.

The Infrastructure Development Scheme for Mega Food Parks aims at providing excellent infrastructure facilities for food processing industries along the value chain from farm to market. The Scheme operates in hub and spoke model under which there will be farm proximate Collection Centres (CC) and Primary Processing Centres (PPC) which will facilitate for cleaning, grading, sorting and packing facilities, dry warehouses, specialised cold stores including pre-cooling chambers, ripening chambers, reefer vans, mobile pre-coolers and mobile collection vans.

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Infrastructure Development Scheme expansion for Mega Food Parks to build integrated food processing hubs and strengthen supply chains. Expansion of the Infrastructure Development Scheme to establish additional Mega Food Parks provides integrated common facility infrastructure across the agricultural value chain in a hub and spoke model, including farm-proximate collection and primary processing centres, cold chain and refrigerated logistics. Selection follows Expressions of Interest under scheme guidelines and projects proceed to implementation according to a prescribed timeline from initial funding tranches, with the scheme structured to leverage private investment alongside Government grants to reduce wastage, promote value addition and increase farmer incomes.