Five more mega food parks to come up

The government today gave its approval for setting up five mega food parks under the infrastructure development scheme involving an investment of Rs 500 crore.

The Cabinet Committee on Economic Affairs today gave its approval to set up five more mega parks thus taking the total number to 15. Ten such parks are already being approved by the government, involving a total government grant of Rs 250 crore, an official release said.

Each food park is estimated to require an investment of Rs 100 crore and the five parks would required an investment of more than Rs 500 crore. Out of the investment of Rs 500 crore required for parks, government would provide a grant of Rs 250 crore, the relase said.

"Expected annual turnover of each project will be Rs 500 crore and will generate about 40,000 direct and indirect jobs," it added.

Mega food parks are aimed at facilitating the processing of perishable food items backed by efficient supply chains, collection centres, primary processing centres and cold chain infrastructure.

Finance Minister Pranab Mukherjee in his Budget speech had proposed to set up five new mega food parks to boost the food processing sector.

The Scheme which was approved by the government in September, 2008 envisages raising the processing of perishables in the country from the existing 6 per cent to 20 per cent and also increasing the value addition from the current 20 per cent to 35 per cent.

It aims at providing excellent infrastructure facilities for food processing industries along the value chain from the farm to the market.