State gets first cold chain under PPP model

The state-owned Karnataka State Agricultural Produce Processing and Export Corporation Limited (Kappec), engaged in the promotion of exports of agricultural and horticultural produce, is setting up the state’s first cold chain project under the public private participation (PPP) model at Hubli. Kappec has partnered Hubli-based Ken Agritech Pvt Ltd to form the new joint venture company, Tropicool Foods Pvt Ltd, to set up its first individually quick frozen (IQF) freezing unit for processing mango and vegetables at Hubli.

While, Kappec has picked up 26 per cent equity stake in the project, Ken Agritech has taken the majority 74 per cent equity. Ken Agritech has roped in two companies from Belgium and Holland for technology in this project. The cost of the IQF unit is estimated at Rs 10.5 crore which has an installed capacity of 600 metric tonnes of storage and it will be mainly used for processing mango.

K J Devendrappa, managing director, Kappec, said, “This is the first of its kind project in Karnataka taken by Kappec and we wish to replicate this model in other places for other agricultural and horticultural produce.”

This unit is equipped with facilities to store Alphanso variety mango, other fruits and vegetables under the minus 22 degree temperature. It will process 1,800 kgs mango and 3,600 kgs of vegetables and other fruits per hour and employs 200 people. The Belgium and Holland-based companies who have taken equity participation in the project will also buy back the fruits and vegetables process in this unit, he said.

In addition to this unit, Kappec has also set up another cold storage at Kushtagi in Koppal district for storing and processing pomegranate and grapes at an investment of Rs 8.33 crore. The unit will be fully maintained by Kappec. This unit has a 200 metric tonne capacity cold storage and 12 tonne capacity pre cooling unit apart from a bulk storage unit of 300 tonnes per annum, Devendrappa said.

He said the unit will directly benefit 1,000 farmers from Koppal region. While, the state government has extended Rs 2.22 crore under Rashtriya Krishi Vikas Yojana (RKVY) for this project, Kappec has got a financial assistance from Agricultural and Processed Food Products Export Development Authority (Apeda) to the tune of Rs 5.63 crore.

Kappec has also set up a cold chain for grapes with 65 tonnes processing capacity at Bijapur which has facilities for storage, packing, grading, pre cleaning and exports. During 2007-08, Kappec managed to export 3 containers (1 container = 14 tonnes) of grapes and is aiming at doubling it this year, Devendrappa added.