Scheme & Features
Pre-Bid Meeting for Expression of Interest
Scheme formulated to accelerate growth of food
processing industry in the country
Cluster Based Approach
Demand driven with focus on strong backward and
forward integration
Enabling Infrastructure Creation along the supply chain
Creation of Central Processing Centre and Primary
Processing Centres
Common Facilities and amenities to be assisted
Leverage investments in food processing units
Stakeholder participation with private led initiative
through Special Purpose Vehicle (SPV)
Assistance to creation of common enabling facilities
Typical Project Cost envisaged – Rs 120-150 crore
Land – not eligible for funding out of GOI grant
Assistance from Ministry
Limited to non-land component of the project
50% of project cost limited to Rs 50 crore in general areas
75% of project cost limited to Rs 50 crore in difficult &
hilly areas and ITDP notified areas
Mega Food Parks
Holistic & cluster based approach- centralized
facilities for key activities which are technology and
capital intensive
Specific focus on setting up backward linkages for
establishing viable supply chains - Provision for farm
proximate aggregation & minimal processing
infrastructure
Infrastructure needs of a viable Food park /Zone
estimated to be about Rs.1200 million(US $ 30
million) including farm proximate primary
processing facilities
Emphasis on economic viability
Mega Food Park Model
Food Park
PPC – Primary Processing Centre
• PPCs would be fed by 5-10 collection
centres
• PPCs on 2-5 acres of land
• Food park (50-100 acres) fed by 10-12
PPCs
Processing
To Value add
Grading
Sorting
Extended Storage
Farmer Groups
Self Help Groups
Individual farmers
Field
Collection Centers
PPC
PPC
Importer
Exporter
Domestic sales
Mega
Food Park
- CPC
PPC
Primary Processing
Centers
Precooling, Grading
pulping Sorting, waxing,
packing ,
Temporary storage,
Central Processing
Center
Pulping, Aseptic packing,
CA chamber, Cold Store
QC lab, Logistics center,
Processing Units
etc
Domestic
Retail sales
Central Processing Centre : To consist of Developed plots for food
processing units, Built factory sheds for MSEs and Core processing facilities
along with basic infrastructure
Core Processing Facilities
 At CPC : Sorting and grading, Packaging unit, Dry warehouses,
Specialized storage facilities including CA Chambers, Variable humidity
stores, Pre-cooling chambers, Ripening chambers etc, Cold chain
infrastructure, Irradiation facilities, Steam generation & sterilization
units, Food incubation-cum-development centers etc.
At least 50% of the project cost (excluding land cost) shall be towards
creation of above mentioned facilities
Above is an indicative list of facilities and SPV may select or induct any
facilities based on need & viability
Adequate Consultation with the potential food processing units to
finalize the components of CPC.
Primary Processing Centres(PPCs): To serve as spoke for CPC
Core Processing Facilities
At Primary Processing Centers: Sorting and grading, packaging
facilities , dry warehouses, specialized cold stores including precooling chambers, ripening chambers , reefer vans, mobile precoolers and collection vans
PPCs are envisaged as key components to facilitate strong
linkages for sustainable supply for adequate raw materials to
ensure at least 250 days of operation
PPCs are to be strategically located for an optimum coverage in
zone of influence of Mega Food Park.
Factory Buildings
 Provision For MSEs – Maximum 10% of total allottable area
for setting up units
Enabling Basic Infrastructure
Roads, drainage, water supply, electricity supply ETP, logistics
facilities, weighbridges etc
Non –core Infrastructure
Admin buildings, training centers, canteen, workers hostel,
trade/display center etc: Cost of non-core infrastructure
facilities, not exceeding 10% of the project cost, would be
eligible for grant purpose
Project Implementation Expense
Cost of hiring domain consultants (PMC) by SPV – limited to
2% of eligible grant amount
Supply Chain Management – Strategy
Appropriate institutional development at grass
roots level for backward linkages
 Involvement of farmers/producers as stakeholders
 Organizing farmers in SHGs-Cluster approach
 Possibility
of formation of Producers’ Company
involving SHGs/ farmers can be an option
 Wherever possible, Centers to be owned and managed
by SHGs/Entrepreneurs
 Possibilities of contract farming
SPV can be constituted by stakeholders like infrastructure
developers, FIs/Banks/PE Firms, Org. retailers, Food
Processors & other service providers, Farmer Orgs. etc…
SPV to be a Body Corporate registered under the
Companies Act
SPV should have wide dispersal of equity holding so that it
enjoys benefit of collective composition
Each SPV to have
at least three entrepreneurs / business units independent of
each other with no common directors
 at least one should be from the food processing sector with
at least 26% equity in the SPV
SPVs to bring in at least 20% of the project cost,
including the cost of land, as their contribution10% in case of Difficult, hilly & ITDP notified areas
Combined net worth of the shareholders of the
SPV should not be less than Rs. 50 Cr - Food
Processor should have at least 10 Cr of net worth
Government agencies may also become
shareholders in SPV, holding to be less than 26%
of share capital so as to ensure private sector
character of the SPV
Reconstitution of SPV allowed but at least 75% of
the initially approved shareholders to remain
intact during implementation period of project.
Following points are to considered while
constituting the SPV
Promoter with negative net worth in SPV is not allowed
Promoter being a defaulter in RBI list is not allowed
Proposed equity should be in proportion to net worth
of individual promoter
Formulation of Detailed Project Report (DPR)
Procure land & ensure external infrastructure linkages
for the projects
Obtain key statutory approvals/clearances including
environmental clearances etc.
Achieve financial closure of project
Responsible for development, ownership &
management of Mega Food Park
Operating a Trust and Retention Account (TRA) to
ensure utilization of grant in a transparent and judicious
manner and maintain proper account
Execute project in a transparent, efficient & timely
manner
At the time of Final Approval, the SPV must be in
possession of requisite Land.
If the land is in possession with one of the
promoters, then SPV should have clear title of land
and it should be duly registered
Approval for change in land use for
industrial/infrastructural purposes to be taken
Provision of “ sub-lease” clause to be stated
clearly in case of Government land.
The area for CPC should have good accessibility
to Market and Transport network
Details of the focus crops & raw material
assessment to be provided
Viability of Mega Food Park cluster to be
established and it should support at least 200 days
of operation
Inherent risks in the continuous supply of raw
materials to be identified and their mitigations to
be identified.
Assist the Ministry in disseminating information about
MFP Scheme & sensitizing the potential stakeholders
about the MFPS
Assist the Ministry in selection of Projects
 Inviting Expression of Interest for projects under the Scheme
 Evaluation/appraisal of techno-feasibility reports and DPRs
 Appraisal of the DPRs
Assist in the evaluation of any amendments to the
projects/DPRs
Assist the SPVs in financial closure
Monitor & report the progress of the Mega Food Park
projects to the Ministry- Web-based MIS & Monitoring
PMC to be appointed by the SPV
PMC to be selected from MFPI list of empanelled
agencies
Any other consultants meeting the eligibility criteria as
laid out by MFPI
PMC to assist SPV in
Preparation of DPR
Implementation of project including day-to-day
supervision
Preparation of BOQs and Bid Process Management in
procurement of contractors/materials
Assist SPV in release of GoI grant, duly ensuring requisite
documentation for release
Submission of EoI
Appraisal of EoI
In-Principle Approval
Submission of DPR
Appraisal of DPR
Final Approval of DPR
Release of GoI grant – In four phases
Appraisal
(PMA)
by
Programme
Management
Agency
To be Scrutinized by Technical Committee (TC)
In-Principle Approval by Inter-Ministerial Approval
Committee (AC)
Sl.
No.
1
Criteria
Max.
Points
Viability of cluster
Adequate volume of raw materials (should support at least
200 days of operation in a year)
25
A wider mix/variety of raw materials (at least 5 crops)
Agreements/arrangements for raw materials
2
Proposed Investment in Core Processing
Facilities
Upto Rs 50 crores
Rs 50-100 crore
More than Rs 100 crore
10
Sl.
No.
3
Max.
Points
Criteria
10
Possession of appropriate land
Complete possession including title to the land recorded in revenue
records
Allotment letter from State Agencies
Agreement to Sale
Land identified, but not acquired
4
Number of Stakeholders in the Proposed SPV
3-5
More than 5
Extent of involvement of food processing industry and farmer bodies
5
5
Shareholding Pattern of Stakeholders in the Proposed
SPV
Food Processor(s) having more than 26% equity
None of the promoter having more than
holding
49% of equity
5
Sl.
No.
6
7
Criteria
Net worth of Promoters of the SPV
Rs.50-75 crore
Rs.75 – 100 crore
More than Rs.100 crore
Employment Generation
Direct More than 10,000
Between 5,000-10,000
Less than 5000
Indirect
More than 20,000
Between 10,000-20,000
Less than 10,000
Max.
Points
25
10
Sl.
No.
Criteria
8 Leveraging
of Investment
processing units in the CPC
Max.
Points
in
food
Up to Rs.100 crore
Rs.100 - 200 crore
More than Rs.200 crore
Agreements/arrangements with proposed processing
units
10
DPR to be submitted expeditiously – Latest by six
months of In-Principle Approval
DPR to contain
Detailed cluster mapping, raw material assessment, product
mix etc
Business Plan
Technical- Master plan, section design & drawings with
quotations
Financial- Detail project cost, P&L Statement
Management Aspects of the Project
Block cost should be provided for most of the
components of infrastructure
Cap against costs & area allocation for core
processing and basic enabling infrastructure as per
scheme guidelines are to be followed
Developed plots in CPC can only be leased to food
processing units and sale of the same is not allowed
User charges for various common facilities should be
arrived at based on factoring in the GoI grant and
existing industry norms
Approval Process
Appraisal of DPR by PMA
Scrutiny by Technical Committee (TC)
Final Approval by Inter-Ministerial Approval Committee
(AC)
Pre-requisites for DPR Approval
Incorporation and registration of SPV
Execution of share subscription agreement
Possession of requisite land by SPV
Means of Finance
In-principle sanction Letter from Bank
To be released in 4 installment
1st installment of 30% of grant amount in two phases
1st phase – 10% as advance within 15 days of Final Approval
Incorporation of SPV.
 Possession of land with SPV as per DPR requirements,
and its conversion into industrial use, if needed.
Execution of share subscription agreement
 Establishment of Trust and Retention Account in a
Schedule ’A’ Commercial Bank and signing of TRA agreement
 Appointment of a nominee from the Ministry on Board of the
SPV- Tenure of the Ministry nominee will be co-terminus to
operationalization of the project.
 Final approval of the project by AC.
Proof of equity contribution of at least 10% by SPV
Proof of appointment of PMC
Recommendation of PMA confirming the above points
2nd phase – 20% of grant amount
Submission of Utilization Certificate for the grant
released in the 1st phase of First installment
 Details of the contribution of the SPV towards its
share of the project cost.
 Sanction Letter for loan Component, in case SPV is
taking term loans.
 Award of contracts worth at least equivalent to 30%
of the total project cost, excluding the land cost.
The release to be made within 30 days of the SPV
requesting the same, upon completion of aforesaid
conditions
2nd installment of 30% of grant amount
after the utilization of the 2nd phase of the
first installment- Submission of Utilization
Certificate (UC) of the 1st Installment.
after further proportionate expenditure
(equal to the GOI share released) has been
incurred by the SPV on the project excluding
cost of land.
The release shall be made within 30 days of the SPV
requesting the same, upon completion of aforesaid
conditions.
3rd installment of 30% of grant amount
after the utilization of the 2nd installment Submission of Utilization Certificate (UC) of the
2nd Installment
after further proportionate expenditure
(equal to the GOI share released) has been
incurred by the SPV on the project excluding
cost of land.
The release shall be made within 30 days of the SPV
requesting the same, upon completion of aforesaid
conditions.
4th installment of 10% of grant amount on
Successful completion and operationalization of
the project
At least 30% capacity utilization of common
facilities
Submission of Utilization Certificate for 3rd
installment
Separate accounts to be kept for GoI funds
Refund with accrued interest as per GoI norms
in event of SPV withdrawing from the project
Thank You
Welcome to
“Q & A”
Session