LT Overseas to build modern mandis

LT Overseas Pvt Ltd has prepared a blueprint for investing Rs 67 crore in creating modern market terminals in Bhopal and Indore for processing food and vegetables.

The facilities will take shape in one and a half years if the MP government extends support to the company.

The company today started the commercial production (processing) of basmati rice in Satlapur village (22 km from Bhopal) with locally grown basmati.

The company is expecting to cover 100,000 acres shortly through backward integration programmes for farmers.

"We will develop modern market terminals or modern mandis through partnerships with the state government wherein we will pick up 51 per cent while the state government will get 49 per cent," a top company executive told Business Standard at the Satlapur facility.

The state government will provide land for the purpose where facilities like grading, processing, warehousing, cutting and packing will be available for buyers and sellers.

"We will provide necessary infrastructure for buyers and sellers with an approximate investment of Rs 67 crore on 26 acres each in Bhopal and Indore," the executive said.

Under a central government scheme terminal markets are proposed to be set up In Bhopal and at a later stage in Indore through Public-Private Partnership.

Detailed model Project Reports for the above markets have been prepared by National Institute of Agricultural Marketing (NIAM), Jaipur, NCDC (Kolkata) and Maharashtra State Agricultural Marketing Board (Mumbai). The modern markets in Bhopal and Indore would cover fruits, vegetables, flower, aromatics, herbs, meat and poultry.

Company has also entered into "assured buy" agreement with approximately 5000 farmers of Bari, Bareli and Hoshangabad for aromatic basmati paddy.

"We will shortly open collection centers in these districts to purchase rice from the farmers for our Satlapur facility which has annual processing capacity of 35000 metric tones. We will also open more centers in days to come. As of now our investment in the project is Rs 25 crore," the executive added.

The project has been completed within eight months. The company had proposed its project in January this year. The plant will clean, process, dry, shell, mill and sort the locally grown rice.