Mega Food Park Scheme (MFPS)

Objective of the MFPS

to provide modern infrastructure facilities for the food processing along the value chain from the farm
to the market. It will include creation of processing infrastructure near the farm, transportation,
logistics and centralized processing centers. The main feature of the Scheme is a cluster based
approach

Salient Features of the Scheme

It aims to facilitate the establishment of a strong food processing industry backed by an efficient
supply chain, which would include collection centers, primary processing centers and cold chain
infrastructure.

The food processing units, would be located at a Central Processing Centre (CPC) having need based
common infrastructure required for processing, packaging, environmental protection systems, quality
control labs, trade facilitation centers, etc.

The extent of land required for establishing the CPC is estimated to be between 50- 100 acres, though
the actual requirement of land would depend upon the business plan of investor(s), which may vary
from region to region. CPC would be supported by Primary Processing Centers (PPC) and Collection
Centers (CCs) in identified locations based on a techno-feasibility study, adequate to meet the raw
material requirements of the CPC. The land required for setting up of PPCs and CCs at various locations
would be in addition to land required for setting up the CPC.

On an average, each project may have around 25-30 food processing units with a collective investment
of around Rs. 250 crore that would eventually lead to an annual turnover of about Rs. 450-500 crore
and creation of direct / indirect employment of about 5000 persons. Each MFP on being fully
operational will also benefit about 25000 farmers.

Only food processing industries that make food products fit for human / animal consumption are
permitted to be set up in the Mega Food Parks. Packaging facilities of food products as ancillary to the
food processing industries is also eligible for setting up in the Mega Food Parks.

Pattern of Assistance

The Scheme provides a capital grant at the rate of 50 percent of the eligible project cost in general
areas and at the rate of 75 percent of eligible project cost in difficult and hilly areas i.e. North East
Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States
subject to a maximum of Rs. 50 crore per project.

The eligible project cost is defined as total project cost but excluding cost of land, pre-operative
expenses and margin money for working capital. However, interest during construction (IDC) as part
of preoperative expenses and fee to Project management consultant (PMC) up to 2% of the approved
grant can be considered under eligible project cost.

The project cost for the purpose of eligibility under this Scheme would consist of the following
components:

I Core Processing Facilities

Central Processing Centre: Cost of civil work & equipments for common facilities like testing
laboratory, cleaning, grading, sorting and packing facilities, dry warehouses, specialized storage
facilities, cold storage including Controlled Atmosphere Chambers, Pressure Ventilators, variable
humidity stores, pre-cooling chambers, ripening chambers etc., cold chain infrastructure including
reefer vans, packaging unit, irradiation facilities, steam sterilization units, steam generating units,
Food incubation cum development centers etc.

Primary Processing Centers and Farm Proximate Collection Centers: cleaning, grading, sorting and
packing facilities (including equipment), dry warehouses, specialized cold stores including pre-cooling
chambers, ripening chambers (including equipment), reefer vans, mobile pre-coolers, mobile
collection vans etc.

It is desirable to allocate at least 25 percent of the eligible project cost towards creation of above
mentioned core processing facilities.

II. Factory buildings

Mega Food Park may provide standard factory sheds for Micro and Small Enterprises (MSEs) which
are to be built on a maximum of 10 per cent of the area of CPC as part of plug and play facilities for
MSEs.

III. Enabling Basic Infrastructure

It will include site development including development of industrial plots, boundary wall, roads,
drainage, water supply, electricity supply including captive power plant, effluent treatment plant,
telecommunication lines, parking bay including traffic management system, weighbridges etc. at the
PPC and CPC level. However, of the total proposed cost of captive power plant, cost not exceeding
Rs.10 crore shall be considered as eligible project cost for grant assessment. Any additional cost
towards setting up of captive power plant would be required to be met exclusively from SPV’s
contribution through equity and debt.

IV. Non-Core Infrastructure

It will consist of support infrastructure such as administrative buildings, training center including
equipment, trade and display center, crèche, canteen, worker’s hostel, offices of service providers,
labour rest and recreation facilities, marketing support system, etc. However, the cost of non-core
infrastructure facilities not exceeding 10 percent of the eligible project cost, would be eligible for grant
purpose.

V. Project Implementation Expenses

This would include cost of hiring the services of domain consultants by the SPV’s for preparation of
DPRs, supply chain management, engineering/designing and construction supervision etc.

VI. Land

At least 50 acres of land for the project shall be arranged by the SPV either by purchase or on lease of
at least 75 years. The registered value of such land would be taken as part of the project cost and
contribution/share of the SPV. The GoI grant shall not be used for procurement/purchase of land. The
land and/or infrastructure taken on lease for PPCs / CCs, the lease period should be at least 25 years.

The responsibility of execution, ownership and management of the Mega Food Park would vest with
a Special Purpose Vehicle (SPV) registered under the Companies Act. However, State Government/
State Government entities/Cooperatives applying for the project under the scheme will not be
required to form a separate SPV.
The Anchor Investor in the SPV holding majority stake, with or without other promoters of the SPV,
will be required to set up at least one food processing unit in the park with an investment of not less
than Rs. 10 crore. The Anchor Investor will have at least 51% stake in such processing unit(s).

Ministry will appoint Program Management Agency (PMA) to assist it in implementation of the
Scheme. The PMA will be a reputed institution with extensive experience in project development,
management, financing and implementation of infrastructure projects. For meeting the cost of the
PMA and also other promotional activities by the Ministry, office expenses & travel expenses an
amount up to 5% of the overall grant is available.
 Scheme for Creation of Infrastructure for Agro Processing Clusters

Objectives of the Scheme:

✓ To create modern infrastructure for food processing closer to production areas.

✓ To provide integrated and complete preservation infrastructure facilities from the farm gate
to the consumer.
✓ To create effective backward and forward linkages by linking groups of producers / farmers to
the processors and markets through well-equipped supply chain.

Eligible entities:

Govt. Departments / PSUs / Joint Ventures / NGOs / Cooperatives / Self Help Groups (SHGs) / Farmer
Producer Organizations (FPOs) / Private Sector Companies / Partnership Firms / Proprietorship Firms
etc. can act as Project Execution Agency (PEA) who will be eligible for financial assistance under the
scheme. The following conditions are to be satisfied by PEA

✓ Combined net worth of the PEA should not be less than 1.5 times of the grant amount sought.
✓ PEA needs to bring in at least 20% of the total project cost as equity / contribution in general
areas and at least 10% of the total project cost in the North East States (including Sikkim) and
difficult areas namely Himalayan States (i.e. Himachal Pradesh, Jammu & Kashmir and
Uttarakhand), State notified ITDP areas & Islands.
✓ Need to bring in term loan from the Bank/Financial Institution for an amount not less than
20% of the project cost.
✓ The land for the project shall be arranged by the PEA either by purchase or on lease of at least
50 years.

For expeditious implementation of the projects, the Ministry may engage Program Management
Agency (PMA) to assist MoFPI for implementation of the scheme.

Salient Features of the Scheme

i. At least 5 food processing units with a minimum aggregate investment of Rs. 25 crore will be
set up in the Agro-processing cluster. These units may be set up by the promoters and
associates of Project Execution Agency (PEA) and by other entrepreneurs. The investment in
these units will not be eligible under this scheme.
ii. Food processing units will be set up simultaneous to the creation of core infrastructure in
the cluster. The core infrastructure facilities being developed in the agro-cluster shall be as
per the requirement of food processing units to be set up in the cluster or as per the
available raw material for processing in the area.
iii. The food processing industries that make food products fit for human and animal
consumption (except alcoholic products) may be permitted to be set up in these clusters.
Preference will be given to projects proposing preservation and/or processing of perishable
food products.
iv. Packaging facilities of food products as ancillary to the food processing industries (proposed
to be setup in the cluster) may also be allotted land in the agro cluster.
v. Agro-processing clusters may be developed by:
✓ the promoter(s) willing to set up own units in the cluster and also allow utilization of
common infrastructure to other units in the area;
✓ the promoter(s) willing to develop common infrastructure for use by the units to be set up in
the food processing cluster by other entrepreneurs;
 ✓ the promoter(s) willing to develop common infrastructure in the existing food processing
cluster
vi. The extent of land required for establishing the agro-processing cluster would depend upon
the business plan of Project Execution Agency (PEA), which may vary from project to project.
At least 10 acres of land for the project shall be arranged by the PEA either by purchase or
on lease of at least 50 years.
vii. Preference will be given to setting up agro-clusters in agri-horti clusters identified by Central
/ State Governments, if any.
viii. It is expected that on an average, each project may have around 5-10 food processing units
to be set up in each Agro-processing cluster with an employment generation potential, both
direct and indirect of about 500 to 1500 persons. This employment generation will provide
livelihood to about 6000 persons based on an average household size of 4 members

Components of the Scheme:

i. Basic enabling infrastructure: It will include site development including development of

industrial plots, boundary wall, roads, drainage, water supply, electricity supply including
power backup, effluent treatment plant, parking bay, weigh bridges, common office space
etc. However, the cost of basic enabling infrastructure not exceeding 40 percent of the
eligible project cost would be eligible for grant purpose.
ii. Core infrastructure: The common facilities will be based on the needs of the units which will
be set up in these clusters. The common facilities of capital intensive nature may include
food testing laboratory, cleaning, grading, sorting and packing facilities, steam generation
boilers, dry warehouse, cold storage, pre-cooling chambers, ripening chambers, IQF,
specialized packaging, other common processing facilities, etc.

Pattern of Assistance

✓ The Scheme envisages grants-in-aid @ 35% of eligible project cost in general areas and
@50% of eligible project cost in the North East States including Sikkim and difficult areas
namely Himalayan States (i.e. Himachal Pradesh, Jammu & Kashmir and Uttarakhand), State
notified ITDP areas & Islands of Union Territories of Lakshadweep and Andaman & Incobar
Islands subject to max. of Rs. 10.00 crore per project.
✓ The grants-in-aid will be credit linked but not back ended.
✓ The eligible project cost will exclude cost of land, pre-operative expenses and margin money
for working capital from the total project cost.
 SCHEME FOR INTEGRATED COLD CHAIN AND VALUE ADDITION INFRASTRUCTURE

Objective

To provide integrated cold chain, preservation and value addition infrastructure from the farm gate
to the consumer.

To reduce post-harvest losses of horticulture and non-horticulture agri-produce

Linking groups of producers to processors and markets through a well-equipped supply chain and cold
chain

Eligible organizations/entities

Partnership/ Proprietorship Firms, Companies, Corporations, Cooperatives, Self Help Groups (SHGs),
Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc. with business interest in cold
chain solutions and also by those who manage supply chain.

Components of the Scheme

Farm Level Infrastructure: which may include processing center, situated in the catchment area of the
targeted produce.

• Integrated Pack-house (with mechanized sorting & grading line/ packing line/ waxing line/
staging cold rooms, etc.)
• Ripening Chamber(s)
• Cold Storage Unit(s) [Associated with value addition]
• Controlled Atmosphere (CA) storage [Associated with value addition]
• Frozen Storage/Deep freezers [Associated with value addition]
• IQF line, Tunnel Freezer, Spiral Freezer, Blast Freezer, Plate Freezer
• Vacuum Freeze Drying
• Milk Chilling / Bulk Milk Cooling/ Automatic Milk Collection Unit/ Milk Processing Unit
(including packing) for which temperature control is necessary during some part of the
processing. (Maximum 50 nos. of Milk Chilling or Bulk Milk Cooling or Automatic Milk
Collection Unit to be assisted per project)
• Poultry/Meat/Marine/Fishery Processing Unit
• Packaging line for chilled /frozen/temperature controlled products
• Pre Cooling Unit(s) and Mobile pre-coolers
• Retail refrigerated carts, temperature controlled solar powered retail carts (maximum 10
numbers to be assisted per project)
• Reefer boats (maximum 10 numbers to be assisted per project)
• Refrigerated Containers including multi-modal container units
• Renewable/ alternate energy technologies (solar, bio-mass, wind etc.) for the project.
[maximum permissible cost is ₹35 lakh, as per MIDH norms]

Distribution hub : This shall have a modern multi-product, multi-temperature cold storage

Refrigerated vans/ refrigerated trucks/ insulated vans/mobile insulated tankers.

Irradiation facility: To avail financial assistance under this scheme, the applicant will have to set up
Farm Level Infrastructure and any one or both of the components under distribution hub &
Refrigerated Van/ Trucks.
Pattern of assistance: - The scheme will have two types of pattern of financial assistance:

(a) For storage infrastructure including Pack House and Pre cooling unit, ripening chamber and
transport infrastructure, grant-in-aid @ 35% for General Areas and @ 50% for North East States,
Himalayan States, Islands & ITDP Areas.

(b) For value addition and processing infrastructure including frozen storage/ deep freezers
associated and integral to the processing, grant-in-aid @ 50% for General Areas and @ 75% for North
East States, Himalayan States, Islands & ITDP Areas, will be provided.

(c) For irradiation facilities grant-in-aid will be provided @ 50% for General Areas and @ 75% for North
East States, Himalayan States, Islands & ITDP Areas.

(d) Maximum grant-in-aid would be ₹10 crore per project.

(e) The grant will be provided only in respect of technical civil works and eligible plant & machinery.

(f) Cost norms of Mission for Integrated Development of Horticulture (MIDH) issued by Department
of Agriculture, Co-operation and Farmers Welfare will be followed wherever available. For facilities
not covered under MIDH guidelines, cost norms as determined by the Ministry will be followed.

Basic Eligibility Criteria:

The net worth of the applicant should be at least 1.5 times of the grant applied

• Pvt. Ltd./ Public Ltd. Companies- net worth will be ascertained based on the paid-up share
capital of the company and reserves created out of profits
• Proprietorship/ Partnership firms / NGOs / Cooperatives/ SHGs etc- net worth will be
ascertained on the basis of latest balance sheet

In-principle or final term loan sanction from the bank/financial institution : for an amount not less
than 20% of the project cost, except in case of North East States wherein term loan amount shall not
be less than 10%

Equity of at least 20% and 10% of the total project cost respectively for projects in general areas and
for projects in North East States, Himalayan States, Islands & ITDP Areas.
 Operation Greens
A central sector scheme (announced in 2018-19) for integrated development of Tomato,
Onion and Potato (TOP) value chain with a budgetary allocation of Rs. 500 crores. The scheme
has two-pronged strategy of Price stabilisation measures (for short term) and Integrated value
chain development projects (for long term). The scheme aims at to stabilize the supply of
Tomato, Onion and Potato (TOP) throughout the country, around the year and without price
volatility.

Measures under the scheme:

(I) Short term Price Stabilisation Measures

NAFED will be the Nodal Agency to implement price stabilisation measures. MoFPI will
provide 50% of the subsidy on the following two components:

i. Transportation of Tomato Onion Potato(TOP) Crops from production to storage;

ii. Hiring of appropriate storage facilities for TOP Crops;

(II) Long Term Integrated value chain development projects

i. Capacity Building of FPOs & their consortium

ii. Quality production
iii. Post-harvest processing facilities
iv. Agri-Logistics
v. Marketing / Consumption Points
vi. Creation and Management of e-platform for demand and supply management of TOP
Crops.

Eligible entities: - Food Processors, FPO/FPC, Co-operative Societies, Individual farmers,

Group of Farmers, Licensed Commission Agent, Exporters, State Marketing/Co-operative
Federation, Retailers etc. engaged in processing/ marketing of fruits and vegetables.
Pattern of assistance will comprise of grants-in-aid at the rate of 50% of the eligible project
cost in all areas, subject to maximum Rs. 50 crores per project. However, in case where PIA
is/are FPO(s), the grant-in-aid will be at the rate of 70% of the eligible project cost in all areas,
subject to maximum Rs. 50 crores per project.
List of selected clusters

a. Production cluster of Tomato:

S.No State Production Cluster Area

1. Andhra Pradesh Chittoor and Anantpur (Kharif & Rabi crops)
2. Karnataka Kolar & Chikkaballapur (Kharif crop)
3. Odisha Mayurbhanj & Keonjhar (Rabi crop)
4 Gujarat Sabarkantha

Production cluster of Onion:

S.No State Production Cluster Area

1. Maharashtra Nasik (Rabi crop)
2. Karnataka Gadag &Dharwad (Kharif crop)
3. Gujarat Bhavnagar & Amreli
4. Bihar Nalanda

Production cluster of Potato

S. No State Production Cluster Area

(a)Agra, Firozabad, Hathras and Aligarh
1. Uttar Pradesh
(b) Farrukhabad and Kannauj
2. West Bengal Hooghly and Purba Bardhaman
3. Bihar Nalanda
4. Gujarat Banaskantha and Sabarkantha

Operation Green: as a part of Aatmnirbhar Bharat Abhiyan

In view of COVID 19 pandemic Operation Greens has been extended from Tomatoes, Onion
and Potatoes (TOP) to ALL fruits and vegetables (TOTAL);
Objective of intervention is to protect the growers of fruits and vegetables from making
distress sale and reduce the post -harvest losses
Scheme features

• 50% subsidy on transportation from surplus production to deficient markets

• 50% subsidy on storage, including cold storages ( for 3 months period);
• Pilot for 6 months (for all fruits & Vegetables) – will be expanded and extended;

Essential conditions:
The subsidy will be disbursed to the eligible entities, in case of fulfilment of the following
conditions: -

• Price in the notified production clusters meet any one of the following conditions:
o Price fall below preceding 3 years’ average market price at the time of harvest
o Price fall more than 15% compared to last year market price at the time of
harvest
o Price fall less than the benchmark price for procurement, if any, fixed by the
State/Central Government for a specified period
• Procurement to be made directly from farmers, FPO/FPC, Co-operative Society or
Licensed Commission Agent and payment should be made only through banking
channel;
• Minimum quantity to be procured and transported/stored per applicant (may consist
of one or more than notified crops) will be as under:
o 50 MT for Individual farmers;
o 100 MT for FPO/FPC, Co-operative, Group of Farmers; 500 MT for Food
Processor, Exporter, Licensed Commission Agent;
o 1,000 MT for Retailers, State Marketing/Co-operative Federation;
For the purpose of calculation of the quantity, a combination of eligible fruits and vegetables
will also be considered, subject to fulfilling of the price criteria for each such crops.
ii. Eligible Criterion for Transportation: minimum distance from notified surplus production
clusters to consumption centre, processing plant, retail outlet, or ports/ airport/ICD/CFS in
India, as the case may be (by road, railway or air):

• 100 Km for Food Processor, FPO/FPC, Co-operative, Individual farmer, Licensed

Commission Agent, Exporter;
• 250 Km for Retailers, State Marketing/Co-operative Federation; In case of export,
transportation charges will be payable only upto Indian borders.

Iii Storage at licensed warehouse or Cold Storage may be at notified production clusters,
consumption centers or any place en-route consumption center
Iv Payment for transportation and storage charges should be made only through banking
channel

V. Maximum admissible subsidy amount per applicant will be Rs. 1 crore during the entire
period of 6 months;
Vi For Food Processors, eligible quantity of procurement of crops for subsidy purpose will be
capped with reference to installed capacity of their processing plant.