Emerging Mega Food Parks in India

Emerging Mega Food Parks in India

India is on the fast track as the Government embarks on the various developmental programmes including Smart cities and industrial & connectivity infrastructure. Figuring among the projects for industries is the creation of Mega Food Parks. With five of the approved 42 Mega Food Parks already operational, Clean India Journal takes stock of the schemes, available infrastructure and the potential for professional cleaning services.

INDIA IS among the top global food producers with just 10% going into processing. However, there is significant amount of wastage in transportation and harvesting owing to several factors including inadequate supply chain infrastructure, cold chain storage and warehousing facilities. Based on cluster approach, on the proven ‘hub-and-spoke’ architecture model, the Mega Food Park Scheme aims to create capital intensive infrastructure to facilitate establishment of an integrated value chain, with food processing at the core and supported by requisite forward and backward linkages. The growth of food parks, largely linked to the agri industry, will also boost the much spoken rurban development mooted in various States of India; thus making way for the cleaning industry to enter the untapped rural India.

The Ministry of Food Processing has approved 42 projects worth `2000cr to come up by 2019 in various States under the Mega Food Park Scheme to develop a robust food processing sector coupled with a strong supply chain network comprising of cold chain network, central processing centre and collection centres.

[box type=”shadow” align=”aligncenter” ]Roles and Responsibilities of Different Stakeholders

• Special Purpose Vehicle (SPV): Responsible for execution, ownership and management of the Mega Food Park registered under the Companies Act.
• Project Management Agency (PMA): An external institution with extensive experience in project development, management, financing and implementation of infrastructure projects hired to assist the MOFPI in implementation of scheme among other roles.
• Project Management Consultant (PMC): An external institution engaged by the SPV for preparation of detailed project report and for assistance in implementation of project.
• Technical Committee (TC): Headed by the Additional/Joint Secretary (MoFPI), this committee scrutinizes the proposals and Detailed Project Reports (DPRs) and provides its recommendations to the InterMinisterial Approval Committee for final approval.
• Inter-Ministerial Approval Committee (IMAC): The IMAC headed by the Minister, MOFPI select the projects and grants the – In-Principle and – Final Approvals to the projects. The IMAC will also monitor the implementation of the projects sanctioned under the Scheme.

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Globally, it has been observed that backward and forward integrations in food processing sector – farm to fork – help reduce wastes by creating infrastructure for primary processing and storage near the farm in the form of Primary Processing Centres (PPCs) and Collection Centres (CCs). The integrated planning, operation and central facility make way for better cleaning and maintenance at lower cost.

At random, 42 parks with clusters of 50 production units and adjoining collection & supply centers, cold chain facilities, warehouses, transportation fleet, internal and external roads… will require specific solutions for cleaning & hygiene.

Of the four food parks with an estimated investment of `600cr scheduled in this year, of which two are already operational, and all those will have 40 to 50 food processing units besides all other supporting facilities. Speaking of basic floor cleaning, even an average size of food production unit would consume a minimum of three kinds of machines. A cluster facility like the food park will require different equations for cleaning. At random, 42 parks with clusters of 50 production units and adjoining collection & supply centers, cold chain facilities, warehouses, transportation fleet, internal and external roads… will require specific solutions for cleaning & hygiene, CIP, pest management, washroom hygiene, waste management and linen care too. Some of the big facility management companies in India are already planning to bid for providing services.

According to earlier reports, the total investments in all these food parks are estimated at about `5,000 crore, of  which the Union government’s share in terms of infrastructure development will be around `2,100 crore. Another `10,500 crore investments are likely to flow into the food parks in the form of setting of various food processing units there. The total turnover of 42 food parks is estimated at `21,000 crore.

The MoFP annual report issued on December 31, 2015, states that “The scheme envisages financial assistance in the form of grant-in-aid @ 50% of the eligible project cost in general areas and @ 75% in difficult areas, subject to a maximum of `50.00 crore per project. Currently, five food parks are fully operational.”

The ICRIER report submitted to the MoFP, states that “In Nigeria and Ghana, food processing industries (covering commodities such as tuna, fruit packing, cocoa, palm oil, etc.) are an important part of the free trade zones and export processing zones. In Philippines, food processing sector is identified as a priority sector by the government for attracting foreign investments under special economic zones and are also known as agroindustrial economic zones. In Dubai, food processing industries are located within Dubai Industrial Park, which is a free zone and it provides infrastructural support, including water and electricity Food supply, waste management system, telecommunication network, road connectivity, modern plants, among others.”

So far, the Ministry has notified 148 food parks in which concessional credit can be availed by food processing units. A loan of `519.20 crore has been sanctioned to 12 Mega Food Projects.

The nature of food park clusters (be it dairy, agro or poultry) is either organic or managed, depending on the raw material availability that fosters competitive advantage and export capabilities. The competitive advantage accruing to the industry enhances export competitiveness.