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No takers for Rs 50-cr food parks in Madhya Pradesh

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Shashikant Trivedi New Delhi/ Bhopal
Last Updated : Jan 29 2013 | 1:55 AM IST

Six food parks, which have been developed with an investment of about Rs 50 crore in Madhya Pradesh in Malanpur (near Gwalior), Piparia & Babai (district Hoshangabad), Nimrani (Mandsaur), Jaggakhedi (Khargone district) and Maneri (in Mandla district) have found no takers.

The food parks were conceptualised by the central government in the late 1990s with equal partnership from the state governments.

State governments are supposed to develop infrastructure in the food park, which includes a warehouse, a chilling plant, research and development facility and other common facilities, through a special purpose vehicle with industry as stakeholder.

But MP failed to market and offer the food parks in the state even after three years of the completion of infrastructure at all the food parks. Except for Maneri, all the parks in the state are in poor condition.

The new state food processing policy has brought new proposed food parks (if any) under the ambit of newly-created food and horticulture department, but the existing food parks will continue under the state industrial development corporation (SIDC). However, industry response towards the parks has not been satisfactory.

The ailing SIDC claimed to issue letter of intent to many food processing industries but hardly any company showed interest in investing. Of the 31 allotments made, three industries were allotted land in Jaggakhedi food park, four in Nimrani, Nine in Babai (only one has come forward), Boregaon (in Chhindwara) six letters (none has made investment), Seven in Malanpur (only 2 has come to pick the land), and two has allotted land in Maneri.

The Piparia food park infrastructure — warehouse and chilling plant — has been destroyed due to short circuit. “Fresh efforts are needed to market the food parks,” a senior official in MPSIDC told Business Standard.

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An industrialist, who had planned food processing unit in Nimrani, had a bitter experience in land allotment. “An SIDC arm issued letter of intent but when he demanded infrastructure in the park he was asked to wait. After a long wait his letter was cancelled,” a source in the department of industry said. “Now, the case is under consideration,” the source added.

Under the laid norms, each food park requires at least 60 acres, while the state authorities created two parks and named them as one. “Babai-Piparia food park is a confusing name. In fact, Babai is 43 km away from Piparia.

“The facilities were created twice in the name of one park, without considering the potential of the place,” a potential investor, who dropped his investment plan in the park, said.

Makers of Priya Gold biscuits, Kant Biscuits, Candico, Lichica and a few more had evinced interest in food parks but all of them failed to start their project. Only VRS Foods and Sheetal Poha mills are working in Malanpur and Babai food park.

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First Published: Aug 16 2008 | 12:00 AM IST

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