Mega Food Park Scheme
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.
The scheme has been discontinued by the Government with effect from 01.04.2021 with provision for committed liabilities for ongoing projects only.
So far following 23 Mega Food Parks are operational:
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. Indus Best Mega Food Park, Raipur, Chhattisgarh.
5. Gujarat Agro Mega Food Park, Surat, Gujarat.
6. Cremica mega Food park, Una, Himachal Pradesh.
7. Integrated Mega Food Park, Tumkur, Karnataka.
8. Kerala Industrial Infrastructure Development Corporation (KINFRA) Mega Food Park, Palakkad, Kerala.
9. Indus Mega Food Park, Khargoan, Madhya Pradesh.
10. Avantee Mega Food Park, Dewas, Madhya Pradesh.
11. Paithan Mega Food Park, Aurangabad, Maharashtra.
12. Satara Mega Food Park, Satara, Maharashtra.
13. Zoram Mega Food Park, Kolasib, Mizoram.
14. MITS Mega Food Park, Rayagada, Odisha.
15. International Mega Food Park, Fazilka, Punjab.
16. Sukhjit Mega Food Park, Kapurthala, Punjab.
17. Greentech Mega Food park, Ajmer, Rajasthan.
18. Smart Agro Mega Food Park, Nizamabad, Telangana.
19. Tripura Mega Food Park, West Tripura, Tripura.
20. Patanjali Food and Herbal Park, Haridwar, Uttarakhand.
21. Himalayan Mega Food Park, Udham Singh Nagar, Uttarakhand.
22. Jangipur Bengal Mega Food Park, Murshidabad, West Bengal.
23. Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC), Haryana.
Pattern of Assistance
- The Scheme shall provide a capital grant at the rate of 50 percent of the eligible project cost* in general areas and at the rate of 75 percent of eligible project cost in difficult and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States subject to a maximum of Rs. 50 crore per project.
*The eligible project cost is defined as total project cost but excluding cost of land, pre-operative expenses and margin money for working capital. However, interest during construction (IDC) as part of preoperative expenses and fee to Project management consultant (PMC) up to 2% of the approved grant would be considered under eligible project cost.
- In the interest of expeditious implementation of the projects, a Program Management Agency (PMA) is appointed by the Ministry to provide management, capacity building, coordination and monitoring support. For meeting the cost of the above and also other promotional activities by the Ministry, a separate amount, to the extent of 5%of the overall grants available, is earmarked.
Release of Grant
The grant-in-aid under the scheme is released in four installments of 30%, 30%, 20% and 20%, subject to other scheme parameters, as per the following schedule:
- First Installment of 30% of total grant under the scheme is released after ensuring expenditure of at least 10% of the eligible project cost on the project components;
- Second installment representing 30% of approved grant assistance is released after proportionate expenditure by SPV from term loan and equity equivalent to the grant amount released as first installment;
- Third installment representing 20% of approved grant assistance is released after proportionate expenditure by SPV from term loan and equity equivalent to the grant amount released as second installment;
- Fourth and final installment representing 20% of approved grant assistance is released subject to successful completion of project and commencement of operations after ensuring expenditure of 100% envisaged contribution of SPV including term loan and equity on the approved project components.
Entrepreneurs looking for fully developed Industrial Plots to setup food processing Units and avail other related services may contact promoters of Mega Food Parks.
Shri Sanjay Kumar Singh,
Ministry of Food Processing Industries,
Panchsheel Bhawan, August Kranti Marg,