• Posted on: 8 May 2016
  • By: admin

Establishment of Food Park 


Mega Food Park Scheme (MFPS)

The primary objective of the MFPS is 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. The scheme will be demand-driven, and will facilitate food processing units to meet environmental and safety standards. 

Salient Features of the Scheme

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


Collection Centers and Primary Processing Centers (PPC): These component have facility for cleaning, grading,sorting and packing facilities, dry warehouses, specialized cold stores including pre-cooling chambers, ripening chambers, reefer vans, mobile pre-coolers,mobile collection vans etc.


Central Processing Centers(CPC):Includes common facilities like Testing Laboratory, Cleaning, Grading,Sorting and Packing Facilities, Dry Warehouses, specialized storage facilities including Controlled Atmosphere Chambers, Pressure Ventilators, variable Humidity Stores, pre-cooling Chambers, Ripening Chambers, Cold Chain Infrastructure including Reefer Vans, Packaging Unit, Irradiation Facilities,Steam Sterilization Units, Steam Generating Units, Food Incubation cum Development Centers etc.


Land required for establishing the CPC : 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.

 Each project may have around 30-35 food processing units with a collective investment of around Rs 250 crores that would eventually lead to an annual turnover of about Rs 450-500 crores and creation of direct and indirect employment of about 30,000 persons. The aggregate investment in CPC, PPCs and CCs should be proportionate and commensurate to the size of the total project keeping in view the economies of scale.

Packaging facilities of food products as ancillary to the food processing industries may also be allotted land in the Mega Food Parks.


Subsidy: The Scheme shall provide a capital grant at the rate of  50% of the eligible project cost (excluding land cost) in general areas and at the rate of 75 % 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 crores per project.