Business Standard

Centre rejects proposal of Huma mega food park

Govt says it did not meet eligibility criteria laid down in Mega Food Parks Scheme

BS Reporter Bhubaneswar
The Union Ministry of Food Processing Industries has rejected the proposal of the Huma Coastal Mega Food Park on the ground that it did not meet the eligibility criteria laid down in the Mega Food Parks Scheme.

“Earlier Huma Food park was cancelled as they did not fulfill the criteria within the stipulated time period. In the new application, they have failed to meet the eligibility criteria. Hence, it has been rejected,” said Union food processing minister, Harismrat Kaur Badal in a video chat with the media persons and government officials.

Asked whether the proposal is under consideration of the Union ministry, she said, “It is ineligible as it has not managed to pass the criteria.”
 

Badal was addressing the media and government officials on the occasion of allocation of 17 new mega food parks across the country to state governments and private firms.

The Huma food park was earlier accorded in-principle approval by MoFPI on September 21, 2012 under the Mega Food Parks Scheme. However, several time extensions of the approval notwithstanding, the SPV created to implement the project, Huma Coastal Mega Food Park Pvt Ltd, could not meet the prescribed conditions for the final approval.

The Inter Ministerial Approval Committee, in a meeting on February 11, 2014, had withdrawn its consent after reviewing the status of compliance achieved by the SPV.

However, subsequently following amendments to the guidelines of Mega Food Parks Scheme, a new proposal was forwarded to the Centre.

Out of 17 new mega food parks approved by the Centre, one Seafood Park has been approved in Odisha, which will be set up by state-run Odisha Industrial Infrastructure Development Corporation(Idco) at Deras in Khurda district on 100 acres of land. The project is estimated to cost of Rs 116.26 crore.

“The ministry had received 72 proposals from the state governments and private players, out of which 17 were approved. Seven mega food parks have been allocated to state governments and 10 to private players”, said Badal.

These 17 mega food parks are likely to attract investment of around Rs 2,000 crore for building modern infrastructure within the complexes, which are targeted to house 500 food processing units with collective investment of around Rs 4,000 crore. The combined annual turn-over of these food parks are pegged at Rs 8,000 crore.

These parks, when fully functional, will create employment for about 80,000 persons and benefit about 5 lakh farmers directly and indirectly, read a PIB (press information bureau) release.

With the new sanctions, the total number of food parks have gone upto 42 in the country as 25 food parks are already in different stages in implementation. 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. Another Rs 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 Rs 21,000 crore. These parks after being fully functional will generate employment for 2.5 lakh persons and about 12.5 lakh farmers will be benefited directly and indirectly.

State MSME department Secretary , Panchanan Dash said, “We will again move the Centre and request them to approve the Huma Coastal Mega Food Park.” G Mohanty, President , Seafood Exporter’s Association of India( Odisha region), complimented the efforts of the Idco and MSME department in getting the Deras project approved.

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First Published: Mar 24 2015 | 8:19 PM IST

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