The Ministry of Food Processing Industries, GoI, to develop mega food parks in the country and to provide the modern infrastructural facilities in Food processing sector has launched this scheme.
- To increase the realization for farmers.
- Creation of high quality processing infrastructure.
- Reduction in wastage.
- Capacity building of producers.
- Processors and creation of an efficient supply chain.
- Significant direct and indirect employment generation.
Implementation of the Mega Food Park is done through the Special Purpose Vehicle (SPV).
SPV can be constituted by stakeholders like infrastructure developers, Financial institutions/Banks/Private Equity Firms, Organisational retailers, Food Processors, Farmer Organisations.
- SPV shall be a body corporate registered under the Companies Act. However, in case of State Government entities/Cooperatives registration of a SPV under the Companies Act will not be necessary.
- The promoter holding maximum equity in SPV will be the lead promoter and would be responsible for effective implementation of the project.
- The combined net worth of the promoters/proposed shareholders of SPV should not be less than Rs.50 crore.
- Each member in SPV must have a net worth at least 1.5 times of his/her proposed equity contribution.
- The SPV needs to bring in at least 20% of the total project cost as equity in general areas and at least 10% of the total project cost in difficult and hilly areas.
- However, State Government / State Government entities will be required to contribute at least 10 percent of the total project cost of the Mega Food Park project.
- Central Government agencies becoming shareholders in the SPV, can only hold up to 26 percent of equity in the SPV.
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 subject to a maximum of Rs. 50 crore per project.
MoFPI, Panchsheel Bhawan, August Kranti Marg, New Delhi-110049
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