Keventer exits from Bhagalpur mega food park project

The company fails to take possession of 125 acres of land due to strong protest by farmers, landowners

The Keventer group has finally withdrawn from the Bhagalpur mega food park project due to unavailability of land.

According to highly placed sources in the state government, the Kolkata based company has also formally informed the government about its decision. "A total of 125 acres of land was identified for this project," said a senior official of the state government, "however, because of the strong protest by farmers and landowners, the company failed to take possession of the land.

Landowners were asking for compensation at current market price, but the company was not ready for this. It resulted in a stalemate over the project and finally its departure." The official added that the state government would now inform Food Processing Ministry and then proceed according to its decision.
 

The ministry approved this mega food park at Kahelgoan region in 2010 and the next year Keventer group was chosen to develop it.

The project was expected to bring almost Rs 2,000 crore of investment to Bihar and to create almost 20,000 jobs in the region. The Kolkata based company had also planned to establish a maize processing unit and cattle feed unit in this project.

Last year, the Future Group, promoted by Kishore Biyani, had also bought stake in this project. However, the land crunch forced the company to first put the project on back burner and later shelve it.

The company and investors holds state government officials responsible for this fiasco. "The cavalier attitude of the officials has costed Bihar a major investment opportunity. Investors have already paid the district administration a sum of Rs 5 crore two years ago, but they failed to provide us land.Despite repeated reminders, we received no land. Therefore, we were forced to pull out from this project," one of the major investors in the project told Business Standard.

Meanwhile, as the Keventer Group has decided to pull out, the clouds of uncertainty are looming large over the mega food park project.