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MEGA FOOD PARKS SCHEME (MFPS)
                             GUIDELINES

1.   Background and Objectives of the Scheme

     a.Based on extensive feedback and consultations with various stakeholders the earlier
          Scheme of Food Parks under the 10th Five Year Plan has been revised and
          reformulated as Mega Food Parks Scheme (MFPS) for the 11th Five Year Plan
          period.

     b.   MFPS is expected to facilitate the achievement of the Vision 2015 of Ministry of
          Food Processing Industries to raise the processing of perishables in the country
          from the existing 6% to 20%, value addition from 20% to 35% and the share in
          global food trade from 1.5% to 3% by the year 2015.

     c.The primary objective of the MFPS is to provide adequate / excellent infrastructure
          facilities for food processing along the value chain from the farm to market. It will
          include creation of infrastructure near the farm, transportation, logistics and
          centralized processing centers. The main feature of the scheme is a cluster based
          approach. The scheme will be demand driven, pre marketed and would facilitate
          food processing units to meet environmental, safety and social standards.

     d.   The expected outcome is increased realization for farmers, creation of high quality
          rural processing infrastructure, reduction in wastage, capacity building of the
          producers and processors and creation of an efficient supply chain along with
          significant direct and indirect employment generation.


2. Salient Features of the Scheme

       a. The scheme aims to facilitate the establishment of a strong food processing industry
          backed by an efficient supply chain, which would include collection centres,
          primary processing centers and cold chain infrastructure. The food processing units,
          under the scheme, would be located at a Central Processing Centre (CPC) with need
          based common infrastructure required for processing, packaging, environmental
          protection systems, quality control labs, trade facilitation centres, etc.

       b. The extent of land required for establishing the CPC is estimated to be between 50-
          100 acres, though the actual requirement of land would depend upon the business
          plan, which may vary from region to region. CPC would be supported by farm
          proximate Primary Processing Centers (PPC) and Collection Centres (CCs) in
          identified locations based on a techno-feasibility study, adequate to meet the
          requirements of the CPC. The land required for setting up of PPCs and CCs at
          various locations would be in addition to land required for setting up CPC.




                                                                                             1
c. It is expected that on an average, each project will have around 30-35 food
          processing units with a collective investment of Rs 250 crores that would eventually
          lead to annual turnover of about Rs 450-500 crores and creation of direct and
          indirect employment to the extent of about 30,000. However, the actual
          configuration of the project may vary depending upon the business plan for each
          Mega Food Park. The aggregate investment in CPC, PPCs and CCs should be
          proportionate and commensurate to the size of the total project keeping in view the
          economies of scale.


The Scheme is co-terminus with the 11th Plan period. However, projects which have received
the final approval under the scheme shall continue to receive the grant support and benefits of
the scheme.

3. Pattern of Assistance:
     3.1   The scheme envisages a one time capital grant of 50% of the project cost (excluding
           land cost) subject to a maximum of Rs. 50 crores in general areas and 75% of the
           project cost (excluding land cost) subject to a ceiling of Rs. 50 crores in difficult
           and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh,
           Uttarakhand and ITDP notified areas of the States.

     3.2   Considering the complexities of the scheme, the Ministry would engage a Program
           Management Agency (PMA) to provide management, capacity building,
           coordination and monitoring support. For meeting the cost of the above and also
           other promotional activities by the Ministry, a separate amount, to the extent of 5%
           of the overall grants available, is earmarked.

     3.3   The project cost for the purpose of eligibility under this scheme would consist of
           the following components:

           3.3.1      Core Processing Facilities:

                    i.   Farm Proximate Collection Centers and Primary Processing Centers:
                         which will have cleaning, grading, sorting and packing facilities
                         (including equipments) dry warehouses, specialized cold stores
                         including pre-cooling chambers, ripening chambers (including
                         equipments), reefer vans, mobile pre-coolers, mobile collection vans
                         etc.

                   ii.   At the Central Processing Centers: buildings for common facilities like
                         testing laboratory (including equipments), cleaning, grading, sorting and
                         packing facilities (including equipments), dry warehouses, specialized
                         storage facilities including Controlled Atmosphere Chambers, Pressure
                         Ventilators, variable humidity stores, pre-cooling chambers, ripening
                         chambers etc. (including equipments), cold chain infrastructure
                         including reefer vans, packaging unit, irradiation facilities, steam
                         sterilization units, steam generating units, Food incubation cum
                         development centers etc.

               iii.      The above mentioned facilities are only illustrative and exact nature of

                                                                                                2
the facilities may vary from project to project based on specific
                       requirements. However, it is expected that at least 50% of the project
                       cost (excluding land) would be towards creation of above mentioned
                       core processing facilities.
           3.3.2   Factory buildings:

                   It will consist of standard factory sheds for Micro and Small Enterprises
                   (MSEs) which are built on a maximum of 10 per cent of the area of CPC as
                   part of plug and play facilities for MSEs.

           3.3.3   Enabling Basic Infrastructure:

                   It will include roads, drainage, water supply, electricity supply including
                   captive power plant, effluent treatment, telecommunication lines, parking
                   bay including traffic management system, weighbridges etc. at the PPC and
                   CPC level. Enabling infrastructure should be commensurate / proportionate
                   to support core activities.

           3.3.4   Non-Core Infrastructure:

                   It will consist of support infrastructure such as administrative buildings,
                   training center (including equipments), trade center/display center, crèche,
                   canteen, workers hostel, offices of service providers, labour rest and
                   recreation facilities, marketing support system, etc. However, the cost of
                   non-core infrastructure facilities not exceeding 10% of the project cost,
                   would be eligible for grant purpose

           3.3.5   Project Implementation Expenses:

                   This would include cost of hiring the services of domain consultants by the
                   SPVs for preparation of DPRs, supply chain management,
                   engineering/designing and construction supervision etc.

           3.3.6   Land

                   Land for the project shall be purchased / arranged by the SPV. The
                   registered value of such land would be taken as part of the project cost and
                   contribution/share of the SPV. The GOI grant shall not be used for
                   procurement of land and will be 50% of non-land component of the project.

      Although the projects are expected to be formulated by the SPVs based on the felt
      needs, the projects with greater emphasis on establishment of core processing facilities
      and thereby directly enabling the establishment of food processing units would be given
      preference.

4.   Implementation Process:

     4.1   Special Purpose Vehicle (SPV)

           4.1.1 The responsibility of execution, ownership and management of the Mega

                                                                                             3
Food Park would vest with a Special Purpose Vehicle (SPV) in which
         Financial Institutions/Banks, organized retailers, processors, service
         providers, producers, farmer organizations and other related stakeholders
         would be the equity holders. The preference for sanctioning assistance under
         the Scheme would be given to those SPVs in which industry units with the
         plans of processing wide range of perishable products will have major stake.

4.1.2 The key features of the SPVs, which shall act as Implementing Agencies (IAs)
       of the projects under the Scheme are indicated below:

          i)   SPV shall be a Body Corporate registered under the Companies Act.

         ii)   Each SPV would have at least three entrepreneurs / business units which
               would be independent of each other with no common directors.

        iii)   At least 26% of equity of the SPV should be held by food processor(s)
               within the SPV.

         iv)   The combined net worth of the shareholders of the SPV should not be
               less than Rs. 50 crore with food processor(s) having at least of Rs 10
               crore of net worth .

    v)         The proposed equity shareholding of the members should be backed by
               adequate net worth.

   vi)         The SPVs need to bring in at least 20% of the project cost, including the
               cost of land, as their contribution.

     vii)      Government agencies can also become shareholders in SPV, if they so
               desire, holding up to a maximum of 26% of share capital so as to ensure
               private sector character of the SPV.

4.1.3      As Implementing Agencies, the SPVs would be responsible for the
           following:

    i)         To formulate the Detailed Project Report and execute the project in a
               transparent, efficient and timely manner.

   ii)         To procure land and ensure external infrastructure linkages for the
               projects.

    iii)       To obtain key statutory approvals/clearances including environmental
               clearances, which are prerequisite for commencement and operation of
               the Project.

   iv)         To achieve financial closure and ensure completion of project.

    v)         To own and maintain the common infrastructure.

   vi)         To receive the financial assistance under the Scheme, and its utilization in
               a transparent and judicious manner and maintain proper account.
                                                                                         4
4.2 Program Management Agency (PMA):

      4.2.1         The Ministry will appoint a Program Management Agency (PMA) to
                    assist it in implementation of the Scheme. The PMA will be a reputed pan
                    India institution with extensive experience in project development,
                    management, financing and implementation of cluster infrastructure
                    projects.

      4.2.2         The envisaged role of PMA is as follows:

              i)    To assist the Ministry in organizing a series of workshops/media
                    campaigns aimed at sensitizing the potential stakeholders about the
                    MFPS.
              ii)   To assist the Ministry in inviting Expression of Interest for projects under
                    the Scheme.
          iii)      To assist the Ministry in selection of Projects through
                    evaluation/appraisal of techno-feasibility reports and DPRs submitted for
                    mega food park projects.          Appraisal of the DPRs will include
                    examination of financial viability and sustainability of O&M structure of
                    the projects.
           iv)      To assist in the evaluation of any amendments to the projects/DPRs.
            v)      To assist the SPVs in financial closure.
           vi)      To assist the Ministry in release of the grant under the scheme.
          vii)      To monitor and report the progress of the Mega Food Park projects to the
                    Ministry.

4.3   Project Management Consultant (PMC):

      In addition to the PMA, for ensuring smooth implementation of projects at ground
      level, Ministry has drawn up a panel of Project Management Consultants (PMC)
      with the required experience in preparation of DPRs for large projects and in project
      implementation. These agencies or any other (meeting the criteria of PMC fixed by
      the Ministry as communicated on its website) may be engaged by the SPVs for
      preparation of DPRs and for assistance in implementation and the cost of which
      would be considered as one of the eligible components of the project. However,
      such cost should not exceed 2% (inclusive of taxes) of the eligible grant amount of
      the project.

4.4   Expression of Interest:

      In response to the notice inviting Expression of Interest (EoI) by Ministry for
      selection of Projects, a proposal for the proposed Mega Food Park will be submitted
      by the promoters / SPV. An illustrative list of points to be covered in the proposal
      along with EoI is provided at Annexure ‘A’. The proposal will be evaluated by the
      Ministry through the PMA, as per illustrative criteria finalized by the Ministry
      (given at Annexure ‘B’), so as to ensure the selection of the most potential and
      viable projects.
      The proposal would have tentatively identified the locations of the CPC and PPCs,
                                                                                              5
availability of land, availability of group of minimum 3 stakeholders who would be
      the potential shareholders of the proposed SPV, the proposed level of investment
      including the estimated project cost and the proposed means of finance, the number
      and type of food processing units and requisite backward and forward linkages. The
      proposals having ownership and possession of suitable land for the project will be
      given preference.

4.5   In-Principle Approval:

      The EoI and the proposal, after appraisal by the PMA, will be scrutinized by a
      Technical Committee, based on which In-Principle approval will be accorded by an
      Inter-Ministerial Approval Committee (AC).

      The In-Principle approval shall be accorded within 2 calendar months of the
      submission of a proposal.

      If the SPVs fail to submit the requisite DPRs along with other requirements needed
      for Final Approval within 6 months from the date of according the In-Principle
      approval, the In-Principle approval stands automatically cancelled unless extension
      of time is granted by the AC.

4.6   Final Approval

      4.6.1 A project will be accorded Final Approval by the AC, if the following
              conditions are fulfilled
            i) Submission of Detailed Project Report (DPR) consisting of technical,
                commercial, financial and management aspects of the project and its
                appraisal/recommendations of PMA and Technical Committee. The DPR
                should include cluster analysis depicting availability of raw materials,
                legible contour survey reports and contour plan/maps of the proposed
                land, Site analysis for elements like soil analysis, flood history, onsite
                features etc. for realistic cost estimates of land development and
                construction, detailed master plan along with sectional drawings and
                building plan with legends alongwith giving clear picture of title of
                drawing and other relevant details, construction cost certified by
                Chartered Engineer, cost of plant and equipment backed with quotation
                from     equipment      and     machinery     suppliers   etc.    and    its
                appraisal/recommendations of PMA and Technical Committee.
           ii) Possession of requisite land by the SPV. At least 50 acres of contiguous
                land should be in possession of SPV for CPC along with change in land
                use for industrial/infrastructure purposes. In case of land leased by the
                SPV, the lease period will be for a minimum of 25 years
          iii) Execution of Share Subscription Agreement amongst the members of
                the SPV.
          iv).            Plan to fund the project, other than the grant portion - Plan will
                need to be supported by proposed equity contribution (clearly suggesting
                respective cash contributions from shareholders in proportion to their
                holding and the timeframe) and “in-principle approval” for term loan from
                the bank through which term loan is being proposed.


                                                                                          6
4.6.2      The Final Approval shall be accorded within 2 months of the
                    submission of the documents evidencing the completion of the above
                    mentioned conditions.

     4.7   Technical Committee and Project Approval Committee:

           4.7.1 A Technical Committee, headed by Joint Secretary (MFPI), would scrutinize
                 the proposals/EoIs and Detailed Project Reports along with the appraisal
                 notes of PMA, and provide its recommendations/ views to the Inter-
                 Ministerial Approval Committee to enable the sanction of In-Principle and
                 Final Approvals. The other members of the Technical Committee shall be as
                 follows:

                         i)      Representative from Ministry of Agriculture
                        ii)      Representative of APEDA
                       iii)      Representative of ICAR
                       iv)       Director (Finance), MFPI
                        v)       Director, MFPI                                 -      Convener

           4.7.2      The Inter-Ministerial Approval Committee (AC), headed by Secretary (Food
                      Processing Industries) would accord “In-Principle” and “Final Approvals”
                      for the projects based on the recommendation/views of the Technical
                      Committee. The AC shall regularly monitor the implementation of the
                      projects sanctioned under the Scheme. The other members of the Committee
                      shall be as follows:

                       i)     Additional Secretary & Financial Advisor, M/o FPI
                      ii)     Advisor (Industry), Planning Commission
                    iii)      Joint Secretary, Ministry of Agriculture
                     iv)      Joint Secretary (PF-II), Department of Expenditure
                      v)      Joint Secretary, MFPI
                     vi)      Chairman, APEDA
                    vii)      Chairman, MPEDA
                   viii)      Director – MFPI                             - Member Secretary
                     ix)      Secretaries of the respective State Governments where the projects are
                              located would be invited for the Approval Committee meeting.

5.   The ongoing projects sanctioned under the earlier Scheme of Food Parks of the previous
     Five Year Plans will continue to be provided Government assistance, as per the
     provisions of the respective scheme, out of the budget provision of Mega Food Parks
     Scheme.

6.   Role of State Government:

     6.1   The role of the State Government is envisaged in the following areas:

           i) Providing assistance to SPVs in procurement of suitable land.



                                                                                                  7
ii) Providing all the requisite clearances, wherever needed, for setting up the
               MFP and its components thereof and providing the necessary assistance for
               Power, Water, Approach roads and other external infrastructure to the project

           iii) Providing flexible and conducive labour environment and consider special
                facilities like exemption of stamp duty, VAT/Sales Tax exemption etc. for the
                MFP and the units located in the MFP.

     6.2   While approving the Mega Food Park projects, preference would be given to
           projects located in states, which have or are in the process of providing
           encouraging / conducive and enabling environment in terms of policy / regulatory
           framework (model APMC Act etc.), infrastructure and fiscal incentives for food
           processing sector.

     6.3   Providing a fast track single window agency to facilitate clearances and
           permissions required for the project

     6.4   The State Government agencies like Infrastructure/Industry Development
           Corporations can also participate in the projects by way of subscribing to the
           equity of SPV, if they so desire as per the norms stipulated in the Scheme.

     6.5   The MFPs will be encouraged and assisted to seek approval of the projects under
           the Industrial Infrastructure Parks Scheme, 2002 and to avail of the benefits
           therein, provided the requisite conditions are met.


7.   Dovetailing of Assistance
     Considering the complexities and challenges associated with a supply chain linked
     infrastructure projects of this nature, the SPV may dovetail assistance available under
     various other schemes of Central and State Governments, which would improve the
     viability of the projects, subject to the condition that the contribution of SPV, including
     land, shall at least be 20% of the project cost. However, in case of difficult areas as
     mentioned in para 3.1, the minimum contribution of SPV shall at least be 10% of the
     project cost. While dovetailing such assistance, it will be ensured that there is no
     duplication of assistance for the same component/activity of the project.

8.   Release of Funds:
     8.1   Once the project receives the Final Approval of the Approval Committee, the grant
           support will be released by the Ministry to the SPV as per the following schedules
           subject to fulfillment of the related conditions stated below, by the SPV:
                 8.1.1. First Installment of 30% of the total grant under the scheme will be
                 released in two parts.

                  In the first phase 10% advance will be released within 15 days of Final
                  Approval, subject to fulfillment of following criteria:

                  i) Incorporation of SPV.

                  ii) Possession of land with SPV as per DPR requirements, and its
                                                                                 8
conversion into industrial use, if needed.

      iii) Execution of Share Subscription Agreement

      iv) Establishment of Trust and Retention Account in a Schedule A
          Commercial Bank and signing of the TRA Agreement with the Bank

      v) Appointment of a nominee from the Ministry on the Board of the SPV.
         Tenure of the Ministry nominee will be co-terminus to the
         operationalization of the project.

      vi) Final approval of the project by AC

      vii) Proof of equity contribution of at least 10% by the SPV

     viii) Proof of appointment of PMC by the SPV

     ix)   Recommendation of PMA confirming the above points (i) to (viii).


      8.1.2. Second part of the first installment representing 20% of the total GOI
      share will be released to the SPV subject to fulfillment of following
      criteria:-

      i) Utilization Certificate for the grant released in the 1st phase of First
         installment

      ii) Details of the contribution of the SPV towards its share of the project
          cost.

      iii) Sanction Letter for loan Component, in case SPV is taking term loans.

       iv)Award of contracts worth at least equivalent to 30% of the total project
          cost, excluding the land cost.

      The release will be made within 30 days of the SPV requesting the same,
      upon completion of aforesaid conditions.

8.1.3 Second installment of 30% of the total GOI share after the utilization of the
      2nd phase of the first installment and after further proportionate expenditure
      (equal to the GOI share released) has been incurred by the SPV on the
      project (excluding land cost). Utilization Certificate (UC) of the 1st
      Installment shall be submitted by the SPV at the time of making claim for
      the 2nd Installment.

      The release will be made within 30 days of the SPV requesting the same,
      upon completion of aforesaid conditions.

8.1.4 Third installment of 30% of the total GOI share after the utilization of the
      2nd installment and after further proportionate expenditure (equal to the
      GOI share released) has been incurred by the SPV on the project(excluding
                                                                                   9
land cost). Utilization Certificate (UC) of the 2nd Installment shall be
                 submitted by the SPV at the time of making claim for the 3rd Installment.

                 The release will be made within 30 days of the SPV requesting the same,
                 upon completion of aforesaid conditions.


           8.1.5 Ten percent of the total GOI share as final grant assistance will be released
                 after successful completion of the project and operationalization of the
                 common facilities in the CPC as mentioned in the DPR. The Utilization
                 Certificate of the 3rd Installment shall also be submitted by the SPV at the
                 time of making claim for the final Installment.

                 The release will be made within 30 days of the SPV requesting the same,
                 upon completion of aforesaid conditions.

     8.2   Separate accounts shall be kept by SPV for the funds released by GOI.

     8.3   In the event of an SPV withdrawing from executing a project before utilizing the
           Government assistance, then the SPV should immediately return the Government
           assistance together with the interest accrued thereon, in accordance with provision
           laid under GFR 19 of Government of India.

     8.4   A format of the Utilization Certificate is given as per Annexure ‘C’


9.   Time Schedule:

     9.1   The time schedule for completion and successful operationalization of project will
           be 24 months from the date of release of first installment of the grant by the
           Ministry or within the extended timeframe as granted by the IMAC.

     9.2   The SPV shall make all possible efforts to complete the projects as per the time
           lines committed while seeking approval for the project. However, except in case of
           force de majeure or reasons beyond the control of SPV, any willful delay, not
           attributable to valid reasons beyond the control of the SPV, the Approval
           Committee may consider imposing appropriate penalty in terms of reducing the
           grant amount, on case to case basis.


10. Project Monitoring and Evaluation:

      The Ministry will periodically review the progress of the projects under the scheme.
      The PMA would devise a suitable project monitoring system and shall furnish monthly
      reports/returns to the Ministry on the progress of the approved projects

      In so far as interpretation of any of the provisions of these guidelines is concerned, the
      decision of the Approval Committee (AC) shall be final.

                                        **********
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0

                                                                              Annexure “A”
Checklist for the Proposal to be submitted, along with EoI, while seeking In-
Principle Approval


(The objective of this Checklist is to facilitate the potential promoters to submit the proposal
covering the salient features of the proposed Project, to enable the assessment of the project
against the criterion as listed in Annexure B)

1.                             Profiles of the Promoters who will be the key
       shareholders of the Proposed SPV

       1.1     Names and brief profiles of the proposed promoters (minimum of 3) along with
               contact details,
       1.2     Indicate the nature and location of existing operations of the Promoters.
       1.3     Audited balance sheets or other support documents that would indicate the net
               worth of each of the promoters.
       1.4     Experience of the key promoters related to food processing industry and related
               infrastructure development, particularly the relative strengths of each of the
               promoters that will help the smooth execution of MFP.
       1.5     A brief note as to why the promoters are keen to undertake the mega food park,
               their vision etc.
       1.6     In case the SPV is already registered, the details of the SPV including
               shareholding pattern.
       1.7     Any other relevant information that would establish the credentials and
               suitability of the promoters in the context of the scheme.
2.                                   Profile of the proposed Project

       2.1     Identification of possible location(s) and requisite land, for establishment of
               central food processing centers and Primary Process PCs and CCs
       2.2     Brief outline of the proposed activities in the CPC including the number and
               type of food processing units, with product mix and the common infrastructure
       2.3     Proposed strategy/methodology for building supply chain to ensure supply of
               raw materials, particularly fruits and vegetables, to the food processing units
               inside CPC, including estimated quantities
       2.4     Outline of the demand side factors including the global and domestic market
               opportunities for the products of the proposed units of the project, and
               marketing strategy
       2.5     Brief strategy for identification and training of requisite manpower for various
               components covered in the Project
       2.6     Estimated investment in CPC, PPCs and CCs, and other components of the
               Project
                                                                                   11
2.7   Estimated turnover of the proposed food processing industry units covered in
           the project, after successful execution of the project
     2.8   Estimated employment generation out of implementation of the project, and
           other impact on the industry and farm produce in the project area
     2.9   Any other related information

3.                                Project Cost and Means of Finance

     3.1   Tentative layout of the CPC and a typical PPC/ CC
     3.2   Estimated cost of each of the eligible components of the project for funding by
           Government as outlined in the Scheme
     3.3   Proposed means of finance to fund the project: equity, debt etc
     3.4   The amount of grant support needed for the project, as per the Scheme
     3.5   Tie-ups with Financial Institutions/Banks, if any, for funding of the Project




                                                                                           12
Format for Expression of Interest Document for setting up of
                       Mega Food Parks

1. Whether SPV registered : Yes/No

2. If Yes , Name of the SPV and other details of SPV including shareholding pattern and names
   of the directors

3. If No ,the proposed structure of the SPV and the promoters’ profile

4. PROFILE/ BACKGROUND OF THE PROMOTERS (Details of at least 3 promoters, in
   descending order of proposed shareholding in existing/proposed SPV)

Name of the Promoter /
Age/Educational or
Professional
Qualification
Address for
Communication and
Contact nos.
Experience in Food
Processing Industry
/Agri-business including
agri infrastructure
(No. of years)
Present Net worth (In                              IT/Wealth             Yes/No
Rs. Crores)                                        returns filed
Expérience/Interest in           Yes/No            If yes, Name
other business (other                              of the
than food processing                               business
industry/agri-business, if                         unit(s)
any)
If yes, in which
capacity/financial stake
Reason for interest in
Mega Food Park
Specific strength of
Promoter which would
help smooth execution
of proposed project
5. EXISTING BUSINESS OPERATIONS OF PROMOTERS :
      (Details of at least 3 promoters, in descending order of proposed shareholding in existing/
      proposed SPV)

Name of current
Unit/Address


Form of Unit         Proprietorship /Partnership/Company


No. of years in                    Product/Sector                Capacity
Business
Investment                         Turnover (last                Net Profit
                                   three years)                  (last three
                                                                 years)


6. EXISTING CREDIT PROFILE OF PROMOTERS
     (Details of at least 5 promoters, in descending order of proposed shareholding in existing/
     proposed SPV)

Availed loans from
Banks/ FIs           Yes/ No


If yes, Nature of    Term Loan/Working Capital/Export Credit
Loan

Outstanding Loan                Name of                          Security
(1)                             Bank/FI                          Offered
Outstanding Loan                Name of                          Security
(2)                             Bank/FI                          Offered
Any private                                     If yes, amount
borrowings,                                     of loan
unsecured loans                                 outstanding
7. PROFILE OF PROPOSED PROJECT :

                   a.    Land Details

                        Proposed Location of Land for CPC and PPCs

                        Land required for CPC In Acres)      _________

                        Land Requirement for PPCs and Collection Centres (In Acres)

                        Whether land acquired _________Yes/No,

                               If No, then timeframe for acquisition

                               If Yes, whether land use conversion required/done

                   b. Proposed Activities

 Type of Food           No. of Units    Land to be    Product Mix       Estimated     Estimated   Estimated
Processing Units                         allotted                      Investment     Turnover    Employees




                   c. Common Infrastructure (CA/Modified Chambers/ Warehouses etc.)

                          Type of Infrastructure     Capacity/Built-up          Estimated
                                                          Area                 Investment




                   d. Common Facilities (Admin building, Trade facilitation centre etc.)

                          Type of Infrastructure     Capacity/Built-up          Estimated
                                                          Area                 Investment
e. Utilities Requirement

                 Utility                             Requirement
                 Power (Maximum Demand)              ________ KW
                 Water – Industrial                  ________ Kilo Litres / Day
                 Water – Potable                     ________ Kilo Litres / Day
                 Gas                                 ________ Cubic Meters / Day
                 Telephone (including fax)           ________ No. of lines
                 Waste     disposal     requirement ________ Kg / Day
                 (solid)
                 Waste     disposal     requirement ________ Kilo Litres / Day
                 (Effluents)


8. OTHER DETAILS
Estimated requirement of raw materials and
proposed strategy/methodology for building
supply chain for sourcing raw materials,
particularly fruits and vegetables
Outlook of the demand for products of proposed
units with details of marketing strategy including
proposed marketing tie-ups, if any
Proposed Revenue model


Proposed Technical arrangements for sourcing
technology/equipments for Common
Infrastructure/Units and Technical tie-up, if any
Proposed management structure


Estimated no. of managers/supervisors/skilled
workers/unskilled workers and strategy for their
identification and training


Plan for Obtaining Technical Support for
Development and Implmentation of Project
9. Proposed Project Financials


          a. Estimated Project cost details

                               Item                      Amount (In Rs. Crores)
                  Land (Including PPCs and CCs)
                  Land       Development/Internal
                  Roads/Drainage etc.
                  Common Technical Infrastructure
                  (including at the level of
                  PPCs/CCs
                  Common Facilities/Amenities
                  Common        Utilities        like
                  power/water/ETP etc.
                  Total

          b. Proposed Means of Finance

                               Item                     Amount (In Rs. Crores)
                   Promoters’ contribution
                   Bank loan, if proposed*
                   Unsecured loan from friends
                   and relatives, if any
                   Eligible grant

                       * Tie-up with banks/financial institutions, if any

          c. Basic Revenue Projections

       Item                Year 1    Year 2        Year 3          Year 4         Year 5
       Turnover
       Cost of
       Operations
       Gross Profit
       Profit before
       taxation

10. DOCUMENTS TO BE ATTACHED

        i)       Net Worth of the Promoters Certified by Chartered Accountant
        ii)    P&L A/c for last three years in case of existing business operations

                                 ***************************
Annexure B
Illustrative Criterion for Assessment of Proposals /EoIs seeking In-Principle Approval
for establishment of MFPs

      S. No.   Criteria                                                  Points
      1.       Viability of cluster                                      25
               Adequate volume of raw materials (should support at least
               200 days of operation in a year)
               A wider mix/variety of raw materials (at least 5 crops)
               Agreements/arrangements of raw materials

      2.       Proposed Investment in Core Processing Facilities        10
               Upto Rs 50 crores
               Rs 50-100 crore
               More than Rs 100 crore

      3.       Possession of appropriate land                           10
               Complete possession including title to the land recorded
               in revenue records
               Allotment letter from State Agencies
               Agreement to Sale
               Land identified but not acquired

      4.       Number of Stakeholders in the Proposed SPV            5
                3-5
               More than 5
               Extent of involvement of food processing industry and
               farmer bodies

      5.       Shareholding Pattern of Stakeholders in the Proposed      5
               SPV
               Food Processor(s) having more than 26% equity
               None of the promoter having more than 49% of equity
               holding
               Any one promoter having more than 49% of equity
               holding

      6.       Net worth of Promoters of the SPV                         25
               Rs.50-75 crore
               Rs.75 – 100 crore
               More than Rs.100 crore
      7        Employment Generation                                    10
               Direct -
               More than 10,000
               Between 5,000-10,000
               Less than 5,000
               Indirect
                                                                                   13
More than 20,000
     Between 10,000-20,000
     Less than 10,000
8.   Leveraging of Investment in food processing units in 10
     the CPC
     Up to Rs.100 crore
     Rs.100 - 200 crore
     More than Rs.200 crore
     Agreements/arrangements with proposed processing units




                                                               14
Annexure C

                              Format for Utilization Certificate

                                    11. FORM GFR 19-A
                                      [ See Rule 212(1) ]

                                   e. Form of Utilization Certificate

Sl. No.          Letter No.     Amount            Certified that out of Rs………… of
                  and date                        grants-in-aid sanctioned during the
                                                  year…….in favour of………. under
                                                  Ministry of Food Processing
                                                  Industries Letter No. given in the
                                                  margin and Rs……….on account of
                                                  unspent balance of the previous
                                                  year, a sum of Rs…….has been
                                                  utilised     for     the   purpose
                                                  of………….for which it was
                                                  sanctioned and that the balance of
                                                  Rs……… remaining unutilised at
                                                  the end of the year has been
                                                  surrendered to Government (vide
                                                  No…………., dated………..)/will
                                                  be adjusted towards the grants-in-
                                                  aid/equity payable during the next
                Total                             year……………




2.      Certified that I have satisfied myself that the conditions on which the grants-in-
aid/equity was sanctioned have been duly fulfilled/are being fulfilled and that I have exercised
the following checks to see that the money was actually utilized for the purpose for which it
was sanctioned.

Kinds of checks exercised

          1.
          2.
          3.


                                                             Signature…………………………

                                                             Designation………………………

                                                                  Date…………………………

                                                                                             15
Following are the empanelled Project Management Consultants (PMC) for the
  Scheme of Mega Food Park of the Ministry of Food Processing Industries, New
  Delhi:

Sl.No Name & address of the PMC              Contact Person                  Contact Details
1.    Andhra Pradesh Industrial         Mr. Srinivasa Rao, M.D.      23237333/23237981/23243611
      Technical Consultancy                                          Hyd1_apitco@sancharnet.in
      Organization Ltd., Parisrama
      Bhavan, 8th Floor, Basheerbagh
      , Hyderabad-500004
2.    D.T. Rathi & Co. Chartered        Mr. D.T. Rathi, Proprietor   9372730210
      Accountants, “Laxmi-Anand”,                                    dtrathi@dataone.in
      Gandhi Putla SQ., Behind
      Renuka Mata Mandir, Central
      Avenue, Nagpur
3.    Feedback Ventures Pvt. Ltd.,      Mr. Akhileshwar Sahay,       42007508
      Feedback House, 7 Local           President                    akhileshwar@feedbackventures.co
      Shooping Center, Panchsheel                                    m
      Park, New Delhi-17.
4.    ICICI Winfra, 2B Gorky            Dr. Debasis Sengupta,        033-22808909
      Terrace, Kolkata-700017           M.D.                         iwin@icicibank.com
5.    IL & FS, Core 4B, 4th Floor,      Mr. A. K. Krishna Kumar,     24682060-64
      India Habitat Centre, Lodhi       Chief Operating Officer      akkrishnakumar@ilfsindia.com
      Road, New Delhi-110003
6.    Magus Consulting Pvt. Ltd.        Mr. Mayur Suchak (MD)        022-67254702
      5th Floor, Next to Railway        9821038925                   mayursuchak@magusconsulting.biz
      Station, Ghatkoper(E),
      Mumbai-400077
7.    MITCON Consulting                 Dr. Pradeep Bavadekar,       020-25533309
      Services, Kubera Chambers, 1st    M.D.                         drbavadekar@yahoo.com
      Floor, Dr. Rajendra Prasad
      Path, Shivaji Nagar, Pune-
      411005
8.    Mott MacDonald A-20,              Mr. S.S. Achraya,            9312601890
      Sector-2, Noida-201301 Uttar      Divisional Manager           ss.achraya@mottmac_india.com
      Pradesh
9.    Rabo Bank, Rabo India                          -               022-22034567
      Finance Ltd., Forbes Building,                                 rabobank@bom3vsnel.net.in
      2nd Floor, Charanjeet Rai Marg,
      Fort, Mumbai-400001.
10.   SREI Infrastructure Finance       Mrs. Saugata Maitra,         03339873861
      Ltd., Infrastructure Advisory     Vice President-              advisory@srei.com
      Group Vishwakarma 86C,            Infrastructure Advisory
      Topsia Road (South), Kolkata-          (91 9830070624)
      700046
11.   Technopak Advisors Pvt.      Mr. Sanjay Sethi, Vice      91-124-454111
      Ltd., 4th Floor, Tower-A DLF President                   sanjay.sethi@technopark.com
      Building B, DLF Cyber City,
      Phase-II, Gurgaon-1222002
12.   UP Industrial Consultants    Shri A. K. Bhatnagar, M.D   0512-2219969
      Ltd., 5th Floor , Kabir                                  headoffice@upico.com
      Bhawan, G.T. Road, Kanpur-
      208002
13.   Yes Bank, 7th Floor, Tower                -              merchantbanking@yesbank.in
      B, Building 8, DLF Cyber
      City, Gurgaon-122002




          Eligibility Criteria of the Project Management Consultant for the
                               Scheme of Mega Food Park

         The SPVs (Special Purpose Vehicle) would be required to use a professional agency
         to act as PMC (Project Management Consultant) for preparation of feasibility
         report, DPR (Detailed Project Report) etc. and considering the nature of the
         elements of the proposed scheme as well as the likely role of PMC in such
         implementation, the agencies intending to bid for such empanelment shall fulfill the
         following eligibility conditions:

         a) Shall be an Institution, corporate house, NGO, consulting firm, which has
         minimum three years experience in development and execution of large
         agro/industry infrastructure projects and setting up/up gradation food testing
         labs. .

         b) PMC should have personnel having qualification in Food technology/ Food Science
         /Agriculture/ CA with MBA or any other foreign degree pertaining to Food
         technology and management.

         c) Shall be technically sound with practical knowledge in preparing precise
         feasibility reports, DPRs with respect to objectives of the scheme and possess
         good knowledge in the stepwise implementation of the projects.
d) Should have prepared DPRs and assisted in implementation of at least one
   agro/industry infrastructure project of more than Rs. 10 crores and Rs. 5
   crores for setting up/upgradation og food testing laboratories.

e) Should have at least Rupees Ten (10) crores of turn over in one of the
   preceding three years in case applying for Mega Food Park and Integrated
   Cold Chain & Strategic Distribution Centre. Govt. organizations/institutions
   are exempted from the eligibility condition of having a minimum turnover of
   at least Rs. 10 crore.



f) Should have financial strength to undertake such projects considering
   various steps/ tasks to be performed from the conception to the completion
   of the project (i.e.) conducting feasibility study, preparation of DPRs,
   implementation of the project and to help in achieving financial closure of
   the project.




                                   ==0==

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Mega food park scheme

  • 1. MEGA FOOD PARKS SCHEME (MFPS) GUIDELINES 1. Background and Objectives of the Scheme a.Based on extensive feedback and consultations with various stakeholders the earlier Scheme of Food Parks under the 10th Five Year Plan has been revised and reformulated as Mega Food Parks Scheme (MFPS) for the 11th Five Year Plan period. b. MFPS is expected to facilitate the achievement of the Vision 2015 of Ministry of Food Processing Industries to raise the processing of perishables in the country from the existing 6% to 20%, value addition from 20% to 35% and the share in global food trade from 1.5% to 3% by the year 2015. c.The primary objective of the MFPS is to provide adequate / excellent infrastructure facilities for food processing along the value chain from the farm to market. It will include creation of infrastructure near the farm, transportation, logistics and centralized processing centers. The main feature of the scheme is a cluster based approach. The scheme will be demand driven, pre marketed and would facilitate food processing units to meet environmental, safety and social standards. d. The expected outcome is increased realization for farmers, creation of high quality rural processing infrastructure, reduction in wastage, capacity building of the producers and processors and creation of an efficient supply chain along with significant direct and indirect employment generation. 2. Salient Features of the Scheme a. The scheme aims to facilitate the establishment of a strong food processing industry backed by an efficient supply chain, which would include collection centres, primary processing centers and cold chain infrastructure. The food processing units, under the scheme, would be located at a Central Processing Centre (CPC) with need based common infrastructure required for processing, packaging, environmental protection systems, quality control labs, trade facilitation centres, etc. b. The extent of land required for establishing the CPC is estimated to be between 50- 100 acres, though the actual requirement of land would depend upon the business plan, which may vary from region to region. CPC would be supported by farm proximate Primary Processing Centers (PPC) and Collection Centres (CCs) in identified locations based on a techno-feasibility study, adequate to meet the requirements of the CPC. The land required for setting up of PPCs and CCs at various locations would be in addition to land required for setting up CPC. 1
  • 2. c. It is expected that on an average, each project will have around 30-35 food processing units with a collective investment of Rs 250 crores that would eventually lead to annual turnover of about Rs 450-500 crores and creation of direct and indirect employment to the extent of about 30,000. However, the actual configuration of the project may vary depending upon the business plan for each Mega Food Park. The aggregate investment in CPC, PPCs and CCs should be proportionate and commensurate to the size of the total project keeping in view the economies of scale. The Scheme is co-terminus with the 11th Plan period. However, projects which have received the final approval under the scheme shall continue to receive the grant support and benefits of the scheme. 3. Pattern of Assistance: 3.1 The scheme envisages a one time capital grant of 50% of the project cost (excluding land cost) subject to a maximum of Rs. 50 crores in general areas and 75% of the project cost (excluding land cost) subject to a ceiling of Rs. 50 crores in difficult and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States. 3.2 Considering the complexities of the scheme, the Ministry would engage a Program Management Agency (PMA) to provide management, capacity building, coordination and monitoring support. For meeting the cost of the above and also other promotional activities by the Ministry, a separate amount, to the extent of 5% of the overall grants available, is earmarked. 3.3 The project cost for the purpose of eligibility under this scheme would consist of the following components: 3.3.1 Core Processing Facilities: i. Farm Proximate Collection Centers and Primary Processing Centers: which will have cleaning, grading, sorting and packing facilities (including equipments) dry warehouses, specialized cold stores including pre-cooling chambers, ripening chambers (including equipments), reefer vans, mobile pre-coolers, mobile collection vans etc. ii. At the Central Processing Centers: buildings for common facilities like testing laboratory (including equipments), cleaning, grading, sorting and packing facilities (including equipments), dry warehouses, specialized storage facilities including Controlled Atmosphere Chambers, Pressure Ventilators, variable humidity stores, pre-cooling chambers, ripening chambers etc. (including equipments), cold chain infrastructure including reefer vans, packaging unit, irradiation facilities, steam sterilization units, steam generating units, Food incubation cum development centers etc. iii. The above mentioned facilities are only illustrative and exact nature of 2
  • 3. the facilities may vary from project to project based on specific requirements. However, it is expected that at least 50% of the project cost (excluding land) would be towards creation of above mentioned core processing facilities. 3.3.2 Factory buildings: It will consist of standard factory sheds for Micro and Small Enterprises (MSEs) which are built on a maximum of 10 per cent of the area of CPC as part of plug and play facilities for MSEs. 3.3.3 Enabling Basic Infrastructure: It will include roads, drainage, water supply, electricity supply including captive power plant, effluent treatment, telecommunication lines, parking bay including traffic management system, weighbridges etc. at the PPC and CPC level. Enabling infrastructure should be commensurate / proportionate to support core activities. 3.3.4 Non-Core Infrastructure: It will consist of support infrastructure such as administrative buildings, training center (including equipments), trade center/display center, crèche, canteen, workers hostel, offices of service providers, labour rest and recreation facilities, marketing support system, etc. However, the cost of non-core infrastructure facilities not exceeding 10% of the project cost, would be eligible for grant purpose 3.3.5 Project Implementation Expenses: This would include cost of hiring the services of domain consultants by the SPVs for preparation of DPRs, supply chain management, engineering/designing and construction supervision etc. 3.3.6 Land Land for the project shall be purchased / arranged by the SPV. The registered value of such land would be taken as part of the project cost and contribution/share of the SPV. The GOI grant shall not be used for procurement of land and will be 50% of non-land component of the project. Although the projects are expected to be formulated by the SPVs based on the felt needs, the projects with greater emphasis on establishment of core processing facilities and thereby directly enabling the establishment of food processing units would be given preference. 4. Implementation Process: 4.1 Special Purpose Vehicle (SPV) 4.1.1 The responsibility of execution, ownership and management of the Mega 3
  • 4. Food Park would vest with a Special Purpose Vehicle (SPV) in which Financial Institutions/Banks, organized retailers, processors, service providers, producers, farmer organizations and other related stakeholders would be the equity holders. The preference for sanctioning assistance under the Scheme would be given to those SPVs in which industry units with the plans of processing wide range of perishable products will have major stake. 4.1.2 The key features of the SPVs, which shall act as Implementing Agencies (IAs) of the projects under the Scheme are indicated below: i) SPV shall be a Body Corporate registered under the Companies Act. ii) Each SPV would have at least three entrepreneurs / business units which would be independent of each other with no common directors. iii) At least 26% of equity of the SPV should be held by food processor(s) within the SPV. iv) The combined net worth of the shareholders of the SPV should not be less than Rs. 50 crore with food processor(s) having at least of Rs 10 crore of net worth . v) The proposed equity shareholding of the members should be backed by adequate net worth. vi) The SPVs need to bring in at least 20% of the project cost, including the cost of land, as their contribution. vii) Government agencies can also become shareholders in SPV, if they so desire, holding up to a maximum of 26% of share capital so as to ensure private sector character of the SPV. 4.1.3 As Implementing Agencies, the SPVs would be responsible for the following: i) To formulate the Detailed Project Report and execute the project in a transparent, efficient and timely manner. ii) To procure land and ensure external infrastructure linkages for the projects. iii) To obtain key statutory approvals/clearances including environmental clearances, which are prerequisite for commencement and operation of the Project. iv) To achieve financial closure and ensure completion of project. v) To own and maintain the common infrastructure. vi) To receive the financial assistance under the Scheme, and its utilization in a transparent and judicious manner and maintain proper account. 4
  • 5. 4.2 Program Management Agency (PMA): 4.2.1 The Ministry will appoint a Program Management Agency (PMA) to assist it in implementation of the Scheme. The PMA will be a reputed pan India institution with extensive experience in project development, management, financing and implementation of cluster infrastructure projects. 4.2.2 The envisaged role of PMA is as follows: i) To assist the Ministry in organizing a series of workshops/media campaigns aimed at sensitizing the potential stakeholders about the MFPS. ii) To assist the Ministry in inviting Expression of Interest for projects under the Scheme. iii) To assist the Ministry in selection of Projects through evaluation/appraisal of techno-feasibility reports and DPRs submitted for mega food park projects. Appraisal of the DPRs will include examination of financial viability and sustainability of O&M structure of the projects. iv) To assist in the evaluation of any amendments to the projects/DPRs. v) To assist the SPVs in financial closure. vi) To assist the Ministry in release of the grant under the scheme. vii) To monitor and report the progress of the Mega Food Park projects to the Ministry. 4.3 Project Management Consultant (PMC): In addition to the PMA, for ensuring smooth implementation of projects at ground level, Ministry has drawn up a panel of Project Management Consultants (PMC) with the required experience in preparation of DPRs for large projects and in project implementation. These agencies or any other (meeting the criteria of PMC fixed by the Ministry as communicated on its website) may be engaged by the SPVs for preparation of DPRs and for assistance in implementation and the cost of which would be considered as one of the eligible components of the project. However, such cost should not exceed 2% (inclusive of taxes) of the eligible grant amount of the project. 4.4 Expression of Interest: In response to the notice inviting Expression of Interest (EoI) by Ministry for selection of Projects, a proposal for the proposed Mega Food Park will be submitted by the promoters / SPV. An illustrative list of points to be covered in the proposal along with EoI is provided at Annexure ‘A’. The proposal will be evaluated by the Ministry through the PMA, as per illustrative criteria finalized by the Ministry (given at Annexure ‘B’), so as to ensure the selection of the most potential and viable projects. The proposal would have tentatively identified the locations of the CPC and PPCs, 5
  • 6. availability of land, availability of group of minimum 3 stakeholders who would be the potential shareholders of the proposed SPV, the proposed level of investment including the estimated project cost and the proposed means of finance, the number and type of food processing units and requisite backward and forward linkages. The proposals having ownership and possession of suitable land for the project will be given preference. 4.5 In-Principle Approval: The EoI and the proposal, after appraisal by the PMA, will be scrutinized by a Technical Committee, based on which In-Principle approval will be accorded by an Inter-Ministerial Approval Committee (AC). The In-Principle approval shall be accorded within 2 calendar months of the submission of a proposal. If the SPVs fail to submit the requisite DPRs along with other requirements needed for Final Approval within 6 months from the date of according the In-Principle approval, the In-Principle approval stands automatically cancelled unless extension of time is granted by the AC. 4.6 Final Approval 4.6.1 A project will be accorded Final Approval by the AC, if the following conditions are fulfilled i) Submission of Detailed Project Report (DPR) consisting of technical, commercial, financial and management aspects of the project and its appraisal/recommendations of PMA and Technical Committee. The DPR should include cluster analysis depicting availability of raw materials, legible contour survey reports and contour plan/maps of the proposed land, Site analysis for elements like soil analysis, flood history, onsite features etc. for realistic cost estimates of land development and construction, detailed master plan along with sectional drawings and building plan with legends alongwith giving clear picture of title of drawing and other relevant details, construction cost certified by Chartered Engineer, cost of plant and equipment backed with quotation from equipment and machinery suppliers etc. and its appraisal/recommendations of PMA and Technical Committee. ii) Possession of requisite land by the SPV. At least 50 acres of contiguous land should be in possession of SPV for CPC along with change in land use for industrial/infrastructure purposes. In case of land leased by the SPV, the lease period will be for a minimum of 25 years iii) Execution of Share Subscription Agreement amongst the members of the SPV. iv). Plan to fund the project, other than the grant portion - Plan will need to be supported by proposed equity contribution (clearly suggesting respective cash contributions from shareholders in proportion to their holding and the timeframe) and “in-principle approval” for term loan from the bank through which term loan is being proposed. 6
  • 7. 4.6.2 The Final Approval shall be accorded within 2 months of the submission of the documents evidencing the completion of the above mentioned conditions. 4.7 Technical Committee and Project Approval Committee: 4.7.1 A Technical Committee, headed by Joint Secretary (MFPI), would scrutinize the proposals/EoIs and Detailed Project Reports along with the appraisal notes of PMA, and provide its recommendations/ views to the Inter- Ministerial Approval Committee to enable the sanction of In-Principle and Final Approvals. The other members of the Technical Committee shall be as follows: i) Representative from Ministry of Agriculture ii) Representative of APEDA iii) Representative of ICAR iv) Director (Finance), MFPI v) Director, MFPI - Convener 4.7.2 The Inter-Ministerial Approval Committee (AC), headed by Secretary (Food Processing Industries) would accord “In-Principle” and “Final Approvals” for the projects based on the recommendation/views of the Technical Committee. The AC shall regularly monitor the implementation of the projects sanctioned under the Scheme. The other members of the Committee shall be as follows: i) Additional Secretary & Financial Advisor, M/o FPI ii) Advisor (Industry), Planning Commission iii) Joint Secretary, Ministry of Agriculture iv) Joint Secretary (PF-II), Department of Expenditure v) Joint Secretary, MFPI vi) Chairman, APEDA vii) Chairman, MPEDA viii) Director – MFPI - Member Secretary ix) Secretaries of the respective State Governments where the projects are located would be invited for the Approval Committee meeting. 5. The ongoing projects sanctioned under the earlier Scheme of Food Parks of the previous Five Year Plans will continue to be provided Government assistance, as per the provisions of the respective scheme, out of the budget provision of Mega Food Parks Scheme. 6. Role of State Government: 6.1 The role of the State Government is envisaged in the following areas: i) Providing assistance to SPVs in procurement of suitable land. 7
  • 8. ii) Providing all the requisite clearances, wherever needed, for setting up the MFP and its components thereof and providing the necessary assistance for Power, Water, Approach roads and other external infrastructure to the project iii) Providing flexible and conducive labour environment and consider special facilities like exemption of stamp duty, VAT/Sales Tax exemption etc. for the MFP and the units located in the MFP. 6.2 While approving the Mega Food Park projects, preference would be given to projects located in states, which have or are in the process of providing encouraging / conducive and enabling environment in terms of policy / regulatory framework (model APMC Act etc.), infrastructure and fiscal incentives for food processing sector. 6.3 Providing a fast track single window agency to facilitate clearances and permissions required for the project 6.4 The State Government agencies like Infrastructure/Industry Development Corporations can also participate in the projects by way of subscribing to the equity of SPV, if they so desire as per the norms stipulated in the Scheme. 6.5 The MFPs will be encouraged and assisted to seek approval of the projects under the Industrial Infrastructure Parks Scheme, 2002 and to avail of the benefits therein, provided the requisite conditions are met. 7. Dovetailing of Assistance Considering the complexities and challenges associated with a supply chain linked infrastructure projects of this nature, the SPV may dovetail assistance available under various other schemes of Central and State Governments, which would improve the viability of the projects, subject to the condition that the contribution of SPV, including land, shall at least be 20% of the project cost. However, in case of difficult areas as mentioned in para 3.1, the minimum contribution of SPV shall at least be 10% of the project cost. While dovetailing such assistance, it will be ensured that there is no duplication of assistance for the same component/activity of the project. 8. Release of Funds: 8.1 Once the project receives the Final Approval of the Approval Committee, the grant support will be released by the Ministry to the SPV as per the following schedules subject to fulfillment of the related conditions stated below, by the SPV: 8.1.1. First Installment of 30% of the total grant under the scheme will be released in two parts. In the first phase 10% advance will be released within 15 days of Final Approval, subject to fulfillment of following criteria: i) Incorporation of SPV. ii) Possession of land with SPV as per DPR requirements, and its 8
  • 9. conversion into industrial use, if needed. iii) Execution of Share Subscription Agreement iv) Establishment of Trust and Retention Account in a Schedule A Commercial Bank and signing of the TRA Agreement with the Bank v) Appointment of a nominee from the Ministry on the Board of the SPV. Tenure of the Ministry nominee will be co-terminus to the operationalization of the project. vi) Final approval of the project by AC vii) Proof of equity contribution of at least 10% by the SPV viii) Proof of appointment of PMC by the SPV ix) Recommendation of PMA confirming the above points (i) to (viii). 8.1.2. Second part of the first installment representing 20% of the total GOI share will be released to the SPV subject to fulfillment of following criteria:- i) Utilization Certificate for the grant released in the 1st phase of First installment ii) Details of the contribution of the SPV towards its share of the project cost. iii) Sanction Letter for loan Component, in case SPV is taking term loans. iv)Award of contracts worth at least equivalent to 30% of the total project cost, excluding the land cost. The release will be made within 30 days of the SPV requesting the same, upon completion of aforesaid conditions. 8.1.3 Second installment of 30% of the total GOI share after the utilization of the 2nd phase of the first installment and after further proportionate expenditure (equal to the GOI share released) has been incurred by the SPV on the project (excluding land cost). Utilization Certificate (UC) of the 1st Installment shall be submitted by the SPV at the time of making claim for the 2nd Installment. The release will be made within 30 days of the SPV requesting the same, upon completion of aforesaid conditions. 8.1.4 Third installment of 30% of the total GOI share after the utilization of the 2nd installment and after further proportionate expenditure (equal to the GOI share released) has been incurred by the SPV on the project(excluding 9
  • 10. land cost). Utilization Certificate (UC) of the 2nd Installment shall be submitted by the SPV at the time of making claim for the 3rd Installment. The release will be made within 30 days of the SPV requesting the same, upon completion of aforesaid conditions. 8.1.5 Ten percent of the total GOI share as final grant assistance will be released after successful completion of the project and operationalization of the common facilities in the CPC as mentioned in the DPR. The Utilization Certificate of the 3rd Installment shall also be submitted by the SPV at the time of making claim for the final Installment. The release will be made within 30 days of the SPV requesting the same, upon completion of aforesaid conditions. 8.2 Separate accounts shall be kept by SPV for the funds released by GOI. 8.3 In the event of an SPV withdrawing from executing a project before utilizing the Government assistance, then the SPV should immediately return the Government assistance together with the interest accrued thereon, in accordance with provision laid under GFR 19 of Government of India. 8.4 A format of the Utilization Certificate is given as per Annexure ‘C’ 9. Time Schedule: 9.1 The time schedule for completion and successful operationalization of project will be 24 months from the date of release of first installment of the grant by the Ministry or within the extended timeframe as granted by the IMAC. 9.2 The SPV shall make all possible efforts to complete the projects as per the time lines committed while seeking approval for the project. However, except in case of force de majeure or reasons beyond the control of SPV, any willful delay, not attributable to valid reasons beyond the control of the SPV, the Approval Committee may consider imposing appropriate penalty in terms of reducing the grant amount, on case to case basis. 10. Project Monitoring and Evaluation: The Ministry will periodically review the progress of the projects under the scheme. The PMA would devise a suitable project monitoring system and shall furnish monthly reports/returns to the Ministry on the progress of the approved projects In so far as interpretation of any of the provisions of these guidelines is concerned, the decision of the Approval Committee (AC) shall be final. ********** 10
  • 11. 0 Annexure “A” Checklist for the Proposal to be submitted, along with EoI, while seeking In- Principle Approval (The objective of this Checklist is to facilitate the potential promoters to submit the proposal covering the salient features of the proposed Project, to enable the assessment of the project against the criterion as listed in Annexure B) 1. Profiles of the Promoters who will be the key shareholders of the Proposed SPV 1.1 Names and brief profiles of the proposed promoters (minimum of 3) along with contact details, 1.2 Indicate the nature and location of existing operations of the Promoters. 1.3 Audited balance sheets or other support documents that would indicate the net worth of each of the promoters. 1.4 Experience of the key promoters related to food processing industry and related infrastructure development, particularly the relative strengths of each of the promoters that will help the smooth execution of MFP. 1.5 A brief note as to why the promoters are keen to undertake the mega food park, their vision etc. 1.6 In case the SPV is already registered, the details of the SPV including shareholding pattern. 1.7 Any other relevant information that would establish the credentials and suitability of the promoters in the context of the scheme. 2. Profile of the proposed Project 2.1 Identification of possible location(s) and requisite land, for establishment of central food processing centers and Primary Process PCs and CCs 2.2 Brief outline of the proposed activities in the CPC including the number and type of food processing units, with product mix and the common infrastructure 2.3 Proposed strategy/methodology for building supply chain to ensure supply of raw materials, particularly fruits and vegetables, to the food processing units inside CPC, including estimated quantities 2.4 Outline of the demand side factors including the global and domestic market opportunities for the products of the proposed units of the project, and marketing strategy 2.5 Brief strategy for identification and training of requisite manpower for various components covered in the Project 2.6 Estimated investment in CPC, PPCs and CCs, and other components of the Project 11
  • 12. 2.7 Estimated turnover of the proposed food processing industry units covered in the project, after successful execution of the project 2.8 Estimated employment generation out of implementation of the project, and other impact on the industry and farm produce in the project area 2.9 Any other related information 3. Project Cost and Means of Finance 3.1 Tentative layout of the CPC and a typical PPC/ CC 3.2 Estimated cost of each of the eligible components of the project for funding by Government as outlined in the Scheme 3.3 Proposed means of finance to fund the project: equity, debt etc 3.4 The amount of grant support needed for the project, as per the Scheme 3.5 Tie-ups with Financial Institutions/Banks, if any, for funding of the Project 12
  • 13. Format for Expression of Interest Document for setting up of Mega Food Parks 1. Whether SPV registered : Yes/No 2. If Yes , Name of the SPV and other details of SPV including shareholding pattern and names of the directors 3. If No ,the proposed structure of the SPV and the promoters’ profile 4. PROFILE/ BACKGROUND OF THE PROMOTERS (Details of at least 3 promoters, in descending order of proposed shareholding in existing/proposed SPV) Name of the Promoter / Age/Educational or Professional Qualification Address for Communication and Contact nos. Experience in Food Processing Industry /Agri-business including agri infrastructure (No. of years) Present Net worth (In IT/Wealth Yes/No Rs. Crores) returns filed Expérience/Interest in Yes/No If yes, Name other business (other of the than food processing business industry/agri-business, if unit(s) any) If yes, in which capacity/financial stake Reason for interest in Mega Food Park Specific strength of Promoter which would help smooth execution of proposed project
  • 14. 5. EXISTING BUSINESS OPERATIONS OF PROMOTERS : (Details of at least 3 promoters, in descending order of proposed shareholding in existing/ proposed SPV) Name of current Unit/Address Form of Unit Proprietorship /Partnership/Company No. of years in Product/Sector Capacity Business Investment Turnover (last Net Profit three years) (last three years) 6. EXISTING CREDIT PROFILE OF PROMOTERS (Details of at least 5 promoters, in descending order of proposed shareholding in existing/ proposed SPV) Availed loans from Banks/ FIs Yes/ No If yes, Nature of Term Loan/Working Capital/Export Credit Loan Outstanding Loan Name of Security (1) Bank/FI Offered Outstanding Loan Name of Security (2) Bank/FI Offered Any private If yes, amount borrowings, of loan unsecured loans outstanding
  • 15. 7. PROFILE OF PROPOSED PROJECT : a. Land Details Proposed Location of Land for CPC and PPCs Land required for CPC In Acres) _________ Land Requirement for PPCs and Collection Centres (In Acres) Whether land acquired _________Yes/No, If No, then timeframe for acquisition If Yes, whether land use conversion required/done b. Proposed Activities Type of Food No. of Units Land to be Product Mix Estimated Estimated Estimated Processing Units allotted Investment Turnover Employees c. Common Infrastructure (CA/Modified Chambers/ Warehouses etc.) Type of Infrastructure Capacity/Built-up Estimated Area Investment d. Common Facilities (Admin building, Trade facilitation centre etc.) Type of Infrastructure Capacity/Built-up Estimated Area Investment
  • 16. e. Utilities Requirement Utility Requirement Power (Maximum Demand) ________ KW Water – Industrial ________ Kilo Litres / Day Water – Potable ________ Kilo Litres / Day Gas ________ Cubic Meters / Day Telephone (including fax) ________ No. of lines Waste disposal requirement ________ Kg / Day (solid) Waste disposal requirement ________ Kilo Litres / Day (Effluents) 8. OTHER DETAILS Estimated requirement of raw materials and proposed strategy/methodology for building supply chain for sourcing raw materials, particularly fruits and vegetables Outlook of the demand for products of proposed units with details of marketing strategy including proposed marketing tie-ups, if any Proposed Revenue model Proposed Technical arrangements for sourcing technology/equipments for Common Infrastructure/Units and Technical tie-up, if any Proposed management structure Estimated no. of managers/supervisors/skilled workers/unskilled workers and strategy for their identification and training Plan for Obtaining Technical Support for Development and Implmentation of Project
  • 17. 9. Proposed Project Financials a. Estimated Project cost details Item Amount (In Rs. Crores) Land (Including PPCs and CCs) Land Development/Internal Roads/Drainage etc. Common Technical Infrastructure (including at the level of PPCs/CCs Common Facilities/Amenities Common Utilities like power/water/ETP etc. Total b. Proposed Means of Finance Item Amount (In Rs. Crores) Promoters’ contribution Bank loan, if proposed* Unsecured loan from friends and relatives, if any Eligible grant * Tie-up with banks/financial institutions, if any c. Basic Revenue Projections Item Year 1 Year 2 Year 3 Year 4 Year 5 Turnover Cost of Operations Gross Profit Profit before taxation 10. DOCUMENTS TO BE ATTACHED i) Net Worth of the Promoters Certified by Chartered Accountant ii) P&L A/c for last three years in case of existing business operations ***************************
  • 18. Annexure B Illustrative Criterion for Assessment of Proposals /EoIs seeking In-Principle Approval for establishment of MFPs S. No. Criteria Points 1. Viability of cluster 25 Adequate volume of raw materials (should support at least 200 days of operation in a year) A wider mix/variety of raw materials (at least 5 crops) Agreements/arrangements of raw materials 2. Proposed Investment in Core Processing Facilities 10 Upto Rs 50 crores Rs 50-100 crore More than Rs 100 crore 3. Possession of appropriate land 10 Complete possession including title to the land recorded in revenue records Allotment letter from State Agencies Agreement to Sale Land identified but not acquired 4. Number of Stakeholders in the Proposed SPV 5 3-5 More than 5 Extent of involvement of food processing industry and farmer bodies 5. Shareholding Pattern of Stakeholders in the Proposed 5 SPV Food Processor(s) having more than 26% equity None of the promoter having more than 49% of equity holding Any one promoter having more than 49% of equity holding 6. Net worth of Promoters of the SPV 25 Rs.50-75 crore Rs.75 – 100 crore More than Rs.100 crore 7 Employment Generation 10 Direct - More than 10,000 Between 5,000-10,000 Less than 5,000 Indirect 13
  • 19. More than 20,000 Between 10,000-20,000 Less than 10,000 8. Leveraging of Investment in food processing units in 10 the CPC Up to Rs.100 crore Rs.100 - 200 crore More than Rs.200 crore Agreements/arrangements with proposed processing units 14
  • 20. Annexure C Format for Utilization Certificate 11. FORM GFR 19-A [ See Rule 212(1) ] e. Form of Utilization Certificate Sl. No. Letter No. Amount Certified that out of Rs………… of and date grants-in-aid sanctioned during the year…….in favour of………. under Ministry of Food Processing Industries Letter No. given in the margin and Rs……….on account of unspent balance of the previous year, a sum of Rs…….has been utilised for the purpose of………….for which it was sanctioned and that the balance of Rs……… remaining unutilised at the end of the year has been surrendered to Government (vide No…………., dated………..)/will be adjusted towards the grants-in- aid/equity payable during the next Total year…………… 2. Certified that I have satisfied myself that the conditions on which the grants-in- aid/equity was sanctioned have been duly fulfilled/are being fulfilled and that I have exercised the following checks to see that the money was actually utilized for the purpose for which it was sanctioned. Kinds of checks exercised 1. 2. 3. Signature………………………… Designation……………………… Date………………………… 15
  • 21. Following are the empanelled Project Management Consultants (PMC) for the Scheme of Mega Food Park of the Ministry of Food Processing Industries, New Delhi: Sl.No Name & address of the PMC Contact Person Contact Details 1. Andhra Pradesh Industrial Mr. Srinivasa Rao, M.D. 23237333/23237981/23243611 Technical Consultancy Hyd1_apitco@sancharnet.in Organization Ltd., Parisrama Bhavan, 8th Floor, Basheerbagh , Hyderabad-500004 2. D.T. Rathi & Co. Chartered Mr. D.T. Rathi, Proprietor 9372730210 Accountants, “Laxmi-Anand”, dtrathi@dataone.in Gandhi Putla SQ., Behind Renuka Mata Mandir, Central Avenue, Nagpur 3. Feedback Ventures Pvt. Ltd., Mr. Akhileshwar Sahay, 42007508 Feedback House, 7 Local President akhileshwar@feedbackventures.co Shooping Center, Panchsheel m Park, New Delhi-17. 4. ICICI Winfra, 2B Gorky Dr. Debasis Sengupta, 033-22808909 Terrace, Kolkata-700017 M.D. iwin@icicibank.com 5. IL & FS, Core 4B, 4th Floor, Mr. A. K. Krishna Kumar, 24682060-64 India Habitat Centre, Lodhi Chief Operating Officer akkrishnakumar@ilfsindia.com Road, New Delhi-110003 6. Magus Consulting Pvt. Ltd. Mr. Mayur Suchak (MD) 022-67254702 5th Floor, Next to Railway 9821038925 mayursuchak@magusconsulting.biz Station, Ghatkoper(E), Mumbai-400077 7. MITCON Consulting Dr. Pradeep Bavadekar, 020-25533309 Services, Kubera Chambers, 1st M.D. drbavadekar@yahoo.com Floor, Dr. Rajendra Prasad Path, Shivaji Nagar, Pune- 411005 8. Mott MacDonald A-20, Mr. S.S. Achraya, 9312601890 Sector-2, Noida-201301 Uttar Divisional Manager ss.achraya@mottmac_india.com Pradesh 9. Rabo Bank, Rabo India - 022-22034567 Finance Ltd., Forbes Building, rabobank@bom3vsnel.net.in 2nd Floor, Charanjeet Rai Marg, Fort, Mumbai-400001. 10. SREI Infrastructure Finance Mrs. Saugata Maitra, 03339873861 Ltd., Infrastructure Advisory Vice President- advisory@srei.com Group Vishwakarma 86C, Infrastructure Advisory Topsia Road (South), Kolkata- (91 9830070624) 700046
  • 22. 11. Technopak Advisors Pvt. Mr. Sanjay Sethi, Vice 91-124-454111 Ltd., 4th Floor, Tower-A DLF President sanjay.sethi@technopark.com Building B, DLF Cyber City, Phase-II, Gurgaon-1222002 12. UP Industrial Consultants Shri A. K. Bhatnagar, M.D 0512-2219969 Ltd., 5th Floor , Kabir headoffice@upico.com Bhawan, G.T. Road, Kanpur- 208002 13. Yes Bank, 7th Floor, Tower - merchantbanking@yesbank.in B, Building 8, DLF Cyber City, Gurgaon-122002 Eligibility Criteria of the Project Management Consultant for the Scheme of Mega Food Park The SPVs (Special Purpose Vehicle) would be required to use a professional agency to act as PMC (Project Management Consultant) for preparation of feasibility report, DPR (Detailed Project Report) etc. and considering the nature of the elements of the proposed scheme as well as the likely role of PMC in such implementation, the agencies intending to bid for such empanelment shall fulfill the following eligibility conditions: a) Shall be an Institution, corporate house, NGO, consulting firm, which has minimum three years experience in development and execution of large agro/industry infrastructure projects and setting up/up gradation food testing labs. . b) PMC should have personnel having qualification in Food technology/ Food Science /Agriculture/ CA with MBA or any other foreign degree pertaining to Food technology and management. c) Shall be technically sound with practical knowledge in preparing precise feasibility reports, DPRs with respect to objectives of the scheme and possess good knowledge in the stepwise implementation of the projects.
  • 23. d) Should have prepared DPRs and assisted in implementation of at least one agro/industry infrastructure project of more than Rs. 10 crores and Rs. 5 crores for setting up/upgradation og food testing laboratories. e) Should have at least Rupees Ten (10) crores of turn over in one of the preceding three years in case applying for Mega Food Park and Integrated Cold Chain & Strategic Distribution Centre. Govt. organizations/institutions are exempted from the eligibility condition of having a minimum turnover of at least Rs. 10 crore. f) Should have financial strength to undertake such projects considering various steps/ tasks to be performed from the conception to the completion of the project (i.e.) conducting feasibility study, preparation of DPRs, implementation of the project and to help in achieving financial closure of the project. ==0==