Top players may not be interested in bidding for four terminal markets in Punjab, sought to be developed through the public private partnership (PPP) model in Hoshiarpur, Jalandhar, Ludhiana and Muktsar. |
This basis of this apprehension of experts lies in the condition by which the Centre, under the National Horticulture Mission, can participate in the equity capital of each project. |
The state government/Centre, under the National Horticulture Mission, can take a maximum of 49 per cent stake in each project. |
Experts in marketing management told Business Standard said equity participation by the Centre would lead to conflicts of interest among the three parties, i.e. the Centre, the Punjab government and private players. |
They say the Centre runs mainly promoting agencies. "Also, the Centre's intervention would create many partners, resulting in conflicts of interest," an expert said. |
"If the government is not offering incentives to the project, why the equity partnership," an expert asked. |
They say only the state government should participate in the equity. But sources in the state government say since the concept is new, the Centre's representation is needed. |
Punjab has amended the Agriculture Produce Marketing Committee Act, but in two years the state government has not be able to attract even a single project. |
The Punjab government has proposed to set up the four state-of-the-art terminal market complexes for fruits, vegetables and flowers in a manner that integrates domestic production with food-processing industries, retail chains and emerging global markets, offering premium price to farmers based on quality in a competitive environment and transparent manner. |
Also, the project includes infrastructure, including collection centres, grading and packing hall, display areas, viewing gallery, auction hall, etc. including banking, processing, exports and other services. |
Besides, backward linkages of these markets with the farmers would be through collection centres, located in the producing areas, and forward linkages through wholesalers, retail supported by distribution centres, and cash & carry stores. |
Apart from Punjab, the Chandigarh administration has invited bids for the Chandigarh terminal market, and has shortlisted four players "" Reliance, DCM Shriram, PFFFL (a subsidiary of Bharat Hotel) and NCDEX "" for the project, which would be developed on the PPP model. |