Worried over the possibility of scrapping of the Huma mega food park, the Odisha government has written to the Centre, seeking more time for the special purpose vehicle (SPV) to comply with the requirements.
The mega food park coming up in Ganjam in south Odisha is being implemented by an SPV called Huma Coastal Mega Food Park Ltd. Five individual promoters are investing Rs 125 crore to develop basic infrastructure on a 100-acre plot. The park promised an investment potential of Rs 200 crore from food processing units.
“It is ascertained from the director, Huma Coastal Mega Food Park that during the inter-ministerial appraisal committee (IMAC) meeting held on February 11, a decision has been taken to cancel the project proposal.... I would request you to kindly consider the extension of another one month (up to March 31, 2014) to complete the formalities as it is a deserving case and consider not to cancel the project proposal without giving a chance for the state government's assessment on the same as this is an important project for the state to promote the food processing industries”, F M Naik, additional secretary, MSME (micro, small & medium enterprises) department said in a letter to joint secretary, Union ministry of food processing.As per a decision taken at a meeting chaired by the Odisha chief secretary in November last year, the SPV was instructed to comply fully on the remaining points to achieve final sanction of the Government of India.
The formalities included registration of the lease agreement with the SPV for the land and final sanction and appraisal from a financial institution.
“The SPV has already signed a lease agreement with the land owners for 62 acres of land. The registration for the same is awaiting due to amendments to the Odisha Food Processing Policy to be notified by the state government. The SPV has also undertaken to register the lease at their own expense in case of an inordinate delay in amendment of the same”, the letter stated.
Regarding financial appraisal, the SPV has taken up the proposal with Small Industries Development Bank of India (Sidbi) and UCO Bank for funding which is under progress.
