Date:12/09/2008 URL: http://www.thehindu.com/2008/09/12/stories/2008091255951300.htm

National

50 % grant for mega food parks

Special Correspondent

NEW DELHI: The Central government on Thursday approved a grant-in-aid assistance of 50 per cent of the project cost in general areas and 75 per cent in the north-eastern region and “difficult areas” for the setting up of 30 mega food parks during the eleventh plan.

In the first phase, 10 mega food parks would be set up in Maharashtra, Andhra Pradesh, Punjab, Jharkhand, Assam, Tamil Nadu, West Bengal, Uttar Pradesh, Uttarakhand and Karnataka.

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Manmohan Singh, cleared the proposal of the Ministry of Food Processing. While approving the Rs. 500 crore scheme, the government said the grant-in-aid would be subject to a maximum of Rs. 50 crore for creation of common infrastructure and facilities for backward/forward linkages. In addition, Rs. 25 crore has been set aside for project management fees at the rate of five per cent of the grant.

Feasibility studies have already been done for five parks to be located at Chittoor (AP), Jalandhar (Punjab), Satara (Maharashtra), Ranchi (Jharkhand) and Sonapur (Assam).

The food parks would comprise processing hubs, laboratories, cold storage and packaging units.