Slow progress on MITS mega Food Park irks Centre

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The Centre has expressed displeasure over the tardy progress of the MITS Mega Food Park project proposed in Rayagada district under its Mega Food Park Scheme.

During his recent visit, Siraj Hussain, Secretary, Union ministry of Food Processing had reviewed the progress of the project.

"It was observed that MITS Mega Food Park, under Mega Food Park Scheme , Government of India , has been sanctioned under the scheme but the physical progress of the project is not satisfactory", read the minutes of the meeting Husain held with the state officials.

The Rayagada unit is being set up by the MITS Mega Food Park Private Limited, a special purpose vehicle (SPV). MITS, a leading education group, is the lead promoter of the project with 51 per cent stake.

The other partners are state owned Odisha Infrastructure Development Corporation (Idco), Keventer Agro Limited (KAL) and Expo Biotech, a research organization, with shareholding of 18 per cent, 26 per cent and five per cent respectively.

"The slow pace of infrastructure development made by the project promoter concerns the Centre. It has also led to unwillingness of investors to invest in the park", said a state government official.

The total cost of the mega food park was pegged at Rs 104 crore.

It may be noted that almost all the agriculture and horticulture products, including the minor forest products would be processed in the park for export purposes. Besides, the other infrastructure facilities like cold storage, effluent treatment plant (ETP) and storage and packing facility will be available in the park.

The project was accorded in-principle approval by the Central government on April 29, 2011, while the final approval came on April 16, 2012.

Approval of subsidy for the park under the Odisha Food Processing Policy 2013 is under active consideration, added the official.

MITS officials declined to comment on the issue.