Punjab, Telangana to get mega food parks

The Union ministry of food processing industries (MoFPI) recently approved setting up of 17 mega food parks (MFPs) across 11 states. These food parks will be set up by state governments and private firms.

The mega food parks have been sanctioned for Punjab, Haryana, Andhra Pradesh, Karnataka, Kerala, Telangana, Odisha, Gujarat, Maharashtra, Madhya Pradesh, Tamil Nadu and Bihar.

The proposed 17 mega food parks are expected to cost Rs 2,030 crore, of which the central grant will give Rs 850 crore. The central government has agreed to extend a grant of Rs 50 crore for each mega food park.

This time, a change was made in the eligibility criteria and public sector units owned by state governments were allowed to apply for setting up food parks. Out of the 17 parks, six have been sanctioned to state-owned units and the balance 11 to private companies.

Among the notable private players, Ruchi Acroni Industries will build a food park in Dewas, in Madhya Pradesh; Adani ports will build its park in Kutch, Gujarat; and Jain Agro Trading Company has chosen Wardha in Maharashtra for its food park.

Among the states, Telangana has bagged two new mega food parks. The state owned Telangana State Industrial Infrastructure Corporation will set up a park in Khammam district, while private firm, Raaga Mayuri Agrovet will establish a similar park in Mahbubnagar district.

Telangana’s neigbhour state, Andhra Pradesh, already has two food parks – one operational and another nearing completion. The Srini Mega Food Park in Chittoor is the country’s first operational mega food park, and the Godavari Aqua Mega Food Park in West Godavari is nearing completion. Of the latest 17 parks, Andhra Pradesh got one. The same will be set up by AP Industrial Infrastructure Corporation at Agiripally, in Krishna district.

In Kerala, both the allocated parks will be set up by state-owned units. Kerala State Industrial Development Corporation (KSIDC) is setting up its park in Alappuzha; and Kerala Industrial Infrastructure Development Corporation (Kinfra) will locate its food park in Palakkad.

The KSIDC park will be set up on 65 acre of land at Pallipuram, in Cherthala, Alappuzha, with an investment of Rs 125 crore. It is expected to cater mainly to the marine food processing industry. The state government has already allocated Rs three crore for the project in the 2015-16 budget.

The Kinfra park is estimated to cost Rs 121.92 crore. The park will have a central processing facility at Elappully and another unit at Pudussery. Five primary processing centres have been proposed in Wayanad, Kozhikode, Malappuram, Thrissur, and Ernakulam from where the raw materials will be sourced.

The Punjab Agro Industries Corporation will set up a multi-product mega food park on 100 acre, at Ladhowal Farm, Ludhiana, at a cost of Rs 140.5 crore. Land has been allotted by the state government. Sukhjit Starch & Chemicals, a private firm, will set up a mega food park across 55 acre near Phagwara, in Kapurthala District. The company may implement the project through a separate special purpose vehicle. Punjab already has a food park operational at Fazilka.

In Haryana, state-owned Haryana State Industrial and Infrastructure Development Corporation will set up a food park at Sonipat, with an investment of Rs 164.33 crore and Continental Warehousing Corporation (Nhava Seva) will set up one with an investment of Rs 157.46 crore at Panipat.

Way back in 2008-09, the Union government had planned to build 42 such parks across the country, each measuring 30-50 acre. However, work started only on 25 parks, while the remaining 17 could not take off, for various reasons. The 17 MFPs were re-allocated on 23 March, 2015.

Expression of Interest (EoI) was invited for the 17 parks on 10 February 2014, with 31 July, 2014 as the last date for submission of proposals. The ministry received 72 proposals.

As for the ongoing 25 mega food parks, two have already been inaugurated and three more are expected to be operationalized by the middle of this year.

The idea behind the MFP scheme is that each park would grow into a cluster, where facilities for food processors, farmers, retailers and exporters would be available at one place. The food parks are considered to be an essential part of Prime Minister, Narendra Modi’s ‘Make in India’ plan.

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