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.

Cleaning & Maintenance of the MFPs post completion

Post completion, the cleaning and maintenance programme is yet in the formulation stage. During an ICRIER’s survey, one of the SPVs said that for maintaining the food park, the company is planning to create an association of units within the food park, which will undertake all maintenance work. It will operate like a cooperative association and the SPV will continue to maintain the park.

The MoFPI pointed out that a short duration MoA will be signed with the SPV and once the grant is totally disbursed or the MoA ceases to exist, the future of the MFPs will be in the hands of the SPV. It is the discretion of SPV to continue running the facility as a food park or converting it to some other use. The MoFPI is responsible until full grant is disbursed and it meets its commitment as under the 11th Five Year Plan.

The total investments in all these food parks are estimated at about Rs 5,000 crore, of which the Union government’s share in terms of infrastructure development will be around Rs 2,100 crore. The total turnover of 42 food parks is estimated at Rs 21,000 crore.

Working closely with MoFP on various MFPs, Ritwik Bahuguna, Director & Partner-NAPL Advisors Pvt Ltd says, “The three operational food parks – Patanjali Food and Herbal Park, Hardwar-Uttrakhand; India Food Park (IFP), Tumkur-Karnataka and International Mega Food Park Ltd, Fazilka-Punjab – do have mechanised cleaning, mostly in-house. As far as cleaning & hygiene is concerned, they do maintain the best of hygiene standards a food processing company can have.” Thus, requiring a complete professional cleaning and maintenance plan.

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NEMFPL

North East Mega Food Park Ltd. (NEMFPL) is a JV of PSUs – Assam Industrial Development Corporation & Assam Small Industry Development Corporation and Private parties – Ozone Ayurvedics, Rajshekhar Constructions Pvt. Ltd and Prajakta Technology Pvt. Ltd with Ozone group being the largest stake holder to the tune of about 69%. The Mega Park houses common facility building (17,000sqm), dry warehouse (5,900sqm), standard design factory (3,400sqm) and cold storage. The infrastructure includes well-constructed road, drainage, water, 10 MVA/33KV power line, effluent/sewerage treatment plant, administrative centre, trade facilitation centre, health care centre, commercial centre, banking, weighing bridge, fire hydrant system, common infrastructure like pre-cooling chamber, quality testing laboratories for testing of food materials and finished products.

“Fresh farm produce will be collected at collection centres and transported to Primary Processing Centres where they will be sorted, graded, washed and packed. Then the produce will be transported to the fresh market or to CPC through a fleet of reefer trucks and vans with variable temperature control features. We can introduce SHGs (Self Help Groups) in backward linkages,” informs Ronn Pakrashi, COO, NEMFPL, Guwahati.

Operations and Maintenance

Speaking about the O&M activities at NEMFPL, Ronn explains, “As NE Food Park operations are still in the nascent stage with only one dehydration unit that has come up, we have two supervisors at our site looking after the entire maintenance. As of now, no annual budget has been fixed for cleaning & maintenance activities. We will provide common facilities and services to the units housed in Food Park on a nominal charge basis, which will be decided soon. At present, no mechanised cleaning is introduced, but we are looking to procure some machines when a few more units become operational in our park.”

To curb contamination, individual units will have to take care of cleaning & hygiene of the area within their premises. For the overall cleaning & hygiene of the park, well defined and systematic measures would , the first six months OEM is with the company, which is setting up the WWTP.

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Waste Management

The first guidelines (2009) of MFP scheme mention that one of the major objectives of the scheme has been to facilitate the implementation of Vision 2015‘, which envisaged an increase value addition from 20 to 35 per cent by 2015.

During ICRIER’s survey, some farmers mentioned that MFP had led to value addition of around 20% in places like Chittor, which supply mangoes to Srini Mega Food Park. The scheme guidelines mention reduction in wastage as one of the important objectives and the MFPs can lead to reduction of wastage through two channels:

• Reduction in agriculture wastage from farmers through increased sourcing from farmers; better storage facilities and providing common infrastructure facilities.
• Reduction in wastage resulting from the food processing through using the waste in other products or for making fuel or gas.

Considering that only two MFPs have been operational for more than two-three years (Patanjali and Food and Herbal Park Pvt Ltd and Srini Food Park Pvt Ltd) while the India Food Park Pvt Ltd and International Mega Food Park Ltd have been operational for less than six months, the level of processing was low. However, survey respondents pointed out that MFPs were contributing towards reduction in agricultural wastage. The survey shows that Srini Food Park Private Limited has been successful in reducing the wastage levels through channel 1. The wastage of agriculture produce has gone from 40% (earlier levels) to 10% (current levels) for fruits such as mango, guava and papaya. Patanjali Food and Herbal Park Private Limited has contributed through reduction of wastage through Channel 2.

“The agro waste generated is used to generate biogas which is utilized as electric power. There is a further reduction in wastage by the means of innovating new products for consumption. For instance, in Patanjali Food and Herbal Park Limited, after processing the Amla (Myrobalan), the solid part is used for making innovative products like candies/ burfis/laddus as per the tastes of Indian customers. This helps in using waste bi-products of the fruits and vegetable by adding value to them.”

[box type=”shadow” align=”aligncenter” ] Srini Food Park

Srini Food Park, Chittoor is located at Mogilli Village in the Chittoor district of Andhra Pradesh, India. This state-of-the-art facility provides w facilities for pulping, IQF, bottling, tetra packing, modular cold storage warehousing and advanced testing lab. The premises offer comprehensive basic and supply chain infrastructure, and cluster farming backed by field collection centres, self-help groups and individual farmers. A unique seed to shelf integrated approach is adopted to add value right from the grass roots level, through central and primary processing centres. Individual plots (1.5 to four acres) and combined plots for lease with pre built factory space are available for the investors. In addition, common ETP, 11 KV electric supply for the dual feeder substation are also provided apart from canteen, conference and work stations among other amenities.

“Currently, we have constituted a Forward Link Team to forge linkage with Wholesale traders, Supermarkets, Processors, Exporters, Spot deliveries and Exchanges. This team is also setting up a network with major leading retailers for sale as per existing and future requirements. Institutions such as Agricultural and Processed Food Products Export Development (APEDA) and National Dairy Development Board (NDDB) are being linked for direct exports,” adds C B Pillay, GM, Srini Food Park.

The Chittoor Fruit Processing cluster is the largest of its kind in India and has been developed over the last 35 years. Chittoor is declared as an AEZ under the Government of India’s Agri Export Zone scheme. To supplement the processing activity at the CPC, the Mega Food Park has envisaged a comprehensive backward linkage by tying up with farmers and traders to procure quality raw material from the farms. The activities in this direction include:

Operations and Maintenance

At present, entire O&M activities are being taken care of by Food Park management through requisite technical and financial aid to the O&M Head. SPVs will be responsible for common technical infrastructure and facilities, deciding and collecting monthly variable service charges from different units in Food Park and outsourcing specialized technical assistance to professional agencies under AMCs.

The Park authorities have allotted annual budget for cleaning & maintenance, which will be revised as per the need. Currently, about 20 janitors /supervisors are offering services in the premise. No machines have been procured so far as all cleaning activities are being performed manually using 10-12% Sodium hypochlorite and food grade soap oil. No sanitation chemical is allowed for use without quality assessment and MSDS check. To stop contamination,various techniques and procedures such as hand dip, foot dip, personal hygiene checks, floor & work table sanitation are conducted to ensure safety of the produce. “We have also received ISO 22000 and BRC certification for the Food Park,” says Pillay.

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