By Rakesh Joshi. Executive Editor, Business India

In 2008, the UPA government launched the Mega Food Park Scheme (MFPS) to provide a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers. The idea was to maximise value addition, minimise wastage, increase farmers’ income and create employment opportunities, particularly in rural sector. 

MFPS envisaged creation of state of the art support infrastructure in a well-defined agri/horticultural zone, the scheme was aimed at setting up of modern food processing units in the industrial plots provided in the park with well-established supply chain. 

Mega food parks typically consist of supply chain infrastructure, including collection centres, primary processing centres, central processing centres, cold chain and 25-30 fully developed plots for entrepreneurs to set up food processing units. 

The project is implemented by a Special Purpose Vehicle (SPV), registered under the Companies Act. Subject to fulfilment of the conditions of the Scheme Guidelines, the funds are released to the SPVs.

Under MFPS, the UPA announced a maximum grant of Rs50 crore (excluding land cost) to food park developers to help them set up a cluster-based facility that would include collection centres, primary processing centres and basic infrastructure such as cold chains, packaging, quality control labs, bottling units and pulping lines. 

The money was to be sanctioned in four instalments. After the BJP came to power in 2014, the Ministry of Food Processing Industries identified 17 such developers and cancelled their approvals. 

Akali Dal’s Harsimrat Kaur Badal, the minister in charge, who recently quit the government, had told Business India: “It seemed that most developers were interested in the Rs50 crore grant and in getting the change in land use from agricultural to industrial and wait for land prices to appreciate. They never seemed to have the intention to put up an MFP. We are now allotting projects to people who seem to have the intention to build these parks.” 

Badal recast the scheme as a sub-scheme under the Pradhan Mantri Kisan Sampada Yojana (PMKSY), as per the guidelines of which, the time schedule for completion of projects was 30 months from the date of issue of the final approval letter to these project proposals.