Revised Guidelines of Mega Food Park Scheme (MFPS)
Revised Guidelines of Mega Food Park Scheme (MFPS)
The Ministry of Food Processing Industries has notified the Revised Guidelines of a Mega Food Park Scheme (MFPS vide a notification dated 3rd February 2021. This new guideline stipulates the procedure that applies to set-up Mega Food Park in the country. With this notification, MoFPI has also floated Expression of Interest (EoI) for submission of proposals for setting up of Mega Food Parks. The last date for submission of the proposal is 3rd March 2021. The Present article briefs the Revised Guidelines of Mega Food Park Scheme (MFPS).
Synopsis of MoFPI Notification
- MoFPI announced that the willing investors/promoters need to submit the proposals online as per the revised guidelines of Mega Food Park Scheme.
- The proposal for MoFPI will be received only through the official website of ministry i.e. “Pradhan Mantri Kisan Sampada”
- The last date for submission of application for Mega Food Park Scheme is 03.03.2021 Upto 5:00 PM.
Mega Food Park Scheme (MFPS)
Ministry of Food Processing Industries has introduced the Mega Food Park Scheme to create modern infrastructure for the food processing industry. This scheme is now a component of the Central Sector Umbrella Scheme – Pradhan Mantri Kisan Sampada Yojana (PMKSY).
Objectives of the MFPS
The primary objective of the Mega Food Park Scheme is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market.
- To create processing infrastructure near the farm, transportation, logistics and centralized processing centres.
- 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
- The expected outcome is increased realization for farmers, creation of high-quality processing infrastructure, reduction in wastage, capacity building of producers, processors and creation of an efficient supply chain along with significant direct and indirect employment generation.
Salient Features of the Mega Food Park Scheme
The Scheme aims to facilitate the establishment of a strong food processing industry backed by an efficient supply chain, which would include collection centres, primary processing centres and cold chain infrastructure.
The food processing units, under the scheme, would be located at a Central Processing Centre (CPC) with the need-based common infrastructure required for processing, packaging, environmental protection systems, quality control labs, trade facilitation centres, etc
The investors/promoters need to make payment of Rs.10000 through Demand Draft (DD) towards Earnest Money Deposit in favour of “ The Pay and Accounts Officer, Ministry of Food Processing Industry” payable at New Delhi.
The Scanned copy of Demand Draft Should be submitted with online proposal and the original Demand Draft (DD) should be submitted to Ministry within 7 days of submission of online proposal failing which the proposal will not be considered.
- After selection of the suitable applicants, the amount of EMD will be refunded to the unsuccessful bidders.
- The EMD of the successful bidders shall be retained by the Ministry as performance security till the completion of the project.
- The amount of EMD retained as performance security will be forfeited in the event of non-completion of the project or withdrawing from the project after according approval.
Note: Proposal submitted without submission of EMD will not be considered.
Pattern of Assistance
The Scheme will provide a capital grant at the rate of 50 per cent of the eligible project cost in general areas and at the rate of 75 per cent of the 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 the 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 would be considered under eligible project cost.
The project cost for eligibility under this Scheme would consist of the following components:
- Core Processing Facilities
- Central Processing Center
- Primary Processing Centers and Farm Proximate Collection Centers
- Factory buildings
- Enabling Basic Infrastructure
- Non-Core Infrastructure
- Project Implementation Expenses
Detailed Project Report (DPR)
For the final approval of the project the applicant needs to submit the Detailed Project Report (DPR) which should consist of the following:
- Technical, commercial, financial and management aspect of the project and its appraisal/recommendations of the PMA and Technical Committee
- The DPR should include cluster analysis depicting availability of raw materials, legible contour survey report and contour plan/maps of the proposed land, site analysis for an element like soil analysis, flood history, onsite features etc.
Note: For realistic cost estimate of land development and construction, detailed master plan along with sectional drawings and building plan and other relevant details, construction cost certified by Chartered Engineer, cost of plant and equipment backed with quotations from equipment and machinery suppliers etc. and its appraisal/recommendations of PMA and Technical Committee
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In response to the notice inviting Expression of Interest (EoI) by Ministry for selection of Projects, a proposal for the proposed Mega Food Park need to be submitted by the promoters/SPV.
- The applicant needs to access the MoFPI official website of Pradhan Mantri Kisan Sampada to submit the proposal for Mega Food Park Scheme.
- From the home page click on the EOI registration tab, select the Mega food park option from the drop-down list. MFP Online Application From For Receiving EOI Proposals will be displayed.
- If the applicant is Registered with NGO Darpan Portal of Niti Ayog, then select the yes option from the drop-down list.
- The non-registered applicant needs to select no option and provide all details for Registration before submitting a proposal.
The proposal will be evaluated by the Ministry through the Project Monitoring Program Management Agency (PMA).
The proposal would have the following details:
- Tentatively identified the locations of the CPC and PPCs
- Availability of land
- Potential investors for food processing units in the park
- The proposed level of investment including the estimated project cost
- The proposed means of finance
- The number and type of food processing units
- Requisite backward and forward linkages
Note: The proposals having ownership and possession of suitable land with Change in Land Use (CLU) for the project will be given preference.
The proposal submitted will be evaluated by the Program Management Agency (PMA) and the applicants will be invited to make a presentation of their proposals before the Technical Committee (TC).
The final evaluation report along with the recommendations of the TC will be placed before the Inter-Ministerial Approval Committee (IMAC) for consideration of “In-Principle Approval” to the projects.
The project will be accorded Final Approval on fulfilment of the following conditions:
- Submission of Detailed Project Report (DPR) consisting of technical, commercial, financial and management aspect of the project and its appraisal/recommendations of the PMA and Technical Committee
- Submission of proof for possession of at least 50 acres of contiguous land by the SPV for the CPC. The land should have permission for change of land use for industrial /infrastructure purposes
- Submission of proof for the incorporation of SPV and execution of Share Subscription Agreement (SSA) amongst the members of SPV, as per draft SSA to be given by the Ministry.
- Plan to fund the project duly supported by proposed equity/contribution, clearly suggesting the contribution from each of the shareholders and sanction of term loan from the bank along with a bank appraisal report.
- Proof of appointment of Project Management Consultant (PMC). The PMC for the project should be selected from the agencies empanelled by the Ministry of Food Processing Industry