Mega Food Park Scheme
Transforming India's Food Processing Sector
A flagship initiative by the Ministry of Food Processing Industries (MoFPI) to provide modern infrastructure for food processing along the value chain from farm to market.
Key Features of Mega Food Parks
The scheme aims to accelerate investment in the food processing sector and provide modern infrastructure facilities for food processing along the value chain.
Central Processing Centre
State-of-the-art facilities for processing, packaging, and quality control of food products.
Primary Processing Centers
Collection centers at farm gate for aggregation and primary processing of agricultural produce.
Quality Control Labs
Modern testing facilities to ensure food safety and compliance with international standards.
Financial Assistance
Grant-in-aid up to ₹50 crores per project to support infrastructure development.
About the Scheme
The Mega Food Park Scheme was launched by the Ministry of Food Processing Industries (MoFPI) under the Government of India to create modern infrastructure for food processing along the value chain from farm to market with strong forward and backward linkages.
The scheme aims to accelerate the growth of the food processing sector by providing a mechanism to link agricultural production to the market by bringing together farmers, processors, and retailers to maximize value addition, minimize wastage, increase farmers' income, and create employment opportunities.
2008 under the 11th Five Year Plan
Up to ₹50 crores per project
Special Purpose Vehicle (SPV) model
42 Mega Food Parks across the country
Objectives of the Scheme
- Provide modern infrastructure for food processing units
- Reduce wastage of agricultural produce and enhance value addition
- Increase processing of perishables and enhance farmers' income
- Create robust supply chain from farm to retail
- Generate employment opportunities in rural areas
- Promote export of processed food products
Scheme Details
Who Can Apply?
Special Purpose Vehicle (SPV)
The scheme is implemented through a Special Purpose Vehicle (SPV) which is a body corporate registered under the Companies Act.
Entities Eligible to Form SPV
- Private companies
- Public sector companies
- Joint ventures
- NGOs
- Cooperatives
- Self-help groups
Land Requirements
- Minimum 50 acres of contiguous land for the Central Processing Centre (CPC)
- Land should be owned/leased by the SPV
- In case of lease, the lease period should be at least 75 years
Financial Criteria
- SPV should have a minimum equity of ₹50 crores
- Net worth of SPV/promoters should be at least ₹25 crores
- Debt-Equity ratio should not exceed 2:1
Key Components of a Mega Food Park
Central Processing Centre (CPC)
- Multi-purpose cold storage
- Standard design factory sheds
- Warehousing facilities
- Quality control laboratories
Primary Processing Centres (PPCs)
- Collection centers
- Sorting and grading facilities
- Primary processing facilities
- Mobile collection vans
Core Infrastructure
- Power supply system
- Water supply
- Effluent treatment plant
- Roads
Support Infrastructure
- Administrative building
- Training center
- Trade facilitation center
- Business incubation center
Funding Pattern
Financial Assistance
The Mega Food Park Scheme provides financial assistance in the form of grant-in-aid at 50% of the eligible project cost in general areas and 75% in difficult and hilly areas (North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand) subject to a maximum of ₹50 crores per project.
| Area | Grant Percentage | Maximum Grant |
|---|---|---|
| General Areas | 50% of eligible project cost | ₹50 crores |
| Difficult & Hilly Areas | 75% of eligible project cost | ₹50 crores |
Release of Grant
The grant-in-aid is released in multiple tranches based on the progress of the project:
-
1
First Installment: 35% - After approval and fulfillment of initial conditions
-
2
Second Installment: 40% - After utilization of 70% of first installment and proportionate expenditure by SPV
-
3
Third Installment: 25% - After utilization of 70% of second installment and proportionate expenditure by SPV
Eligible Project Components
The following components are eligible for financial assistance under the scheme:
- Core processing facilities
- Factory buildings for MSME units
- Basic enabling infrastructure
- Non-core infrastructure
- Project implementation expenses
- Land development
- Primary processing centers
Note: Cost of land is not eligible for grant assistance.
Implementation Framework
Special Purpose Vehicle (SPV)
The Mega Food Park is implemented through a Special Purpose Vehicle (SPV) which is a body corporate registered under the Companies Act.
Role of SPV
- Procurement of land
- Development of infrastructure
- Selection of businesses/units to operate in the park
- Operation and maintenance of assets
- Levy of user charges
Project Execution Timeline
Project Approval
Approval by Inter-Ministerial Approval Committee (IMAC)
Land Acquisition
Within 6 months of approval
Financial Closure
Within 6 months of land acquisition
Project Completion
Within 30 months from date of approval
Note: The timeline may be extended in exceptional circumstances with the approval of the Ministry.
Monitoring Mechanism
Project Management Agency
Assists MoFPI in implementation and monitoring of the projects
Technical Committee
Reviews technical aspects and provides recommendations
IMAC
Inter-Ministerial Approval Committee for final approval and monitoring
Impact of the Scheme
0
Mega Food Parks Approved
0
Direct & Indirect Jobs Created
0
Crores Investment Generated
0
Farmers Benefited
Success Stories
Patanjali Food & Herbal Park, Haridwar
One of the first Mega Food Parks to be operationalized, it has created over 10,000 jobs and benefited thousands of farmers in the region. The park has state-of-the-art processing facilities for fruits, vegetables, and herbs.
Srini Food Park, Chittoor
Located in Andhra Pradesh, this park specializes in processing fruits and vegetables. It has significantly reduced post-harvest losses and increased farmers' income in the region.
North East Mega Food Park, Assam
This park has played a crucial role in promoting food processing in the North East region, creating employment opportunities and providing market linkages for local farmers.
Key Benefits
Reduced Wastage
Reduction in post-harvest losses from 18% to 10%
Value Addition
Increased value addition from 20% to 30%
Farmers' Income
15-20% increase in farmers' income
Processing Level
Increase in processing level from 10% to 20%
Employment
Creation of 250,000+ jobs across the country
Exports
Significant increase in food product exports
Frequently Asked Questions
A Mega Food Park is a hub-and-spoke model that provides modern infrastructure facilities for food processing along the value chain from farm to market with strong forward and backward linkages. It typically consists of a Central Processing Centre (CPC) and several Primary Processing Centers (PPCs) strategically located near the farms.
The scheme is implemented through a Special Purpose Vehicle (SPV) which can be formed by private companies, public sector companies, joint ventures, NGOs, cooperatives, and self-help groups. The SPV should have a minimum equity of ₹50 crores and a net worth of at least ₹25 crores.
The scheme provides financial assistance in the form of grant-in-aid at 50% of the eligible project cost in general areas and 75% in difficult and hilly areas (North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand) subject to a maximum of ₹50 crores per project.
A minimum of 50 acres of contiguous land is required for the Central Processing Centre (CPC). The land should be owned or leased by the SPV. In case of lease, the lease period should be at least 75 years.
The grant-in-aid is released in three installments: 35% as first installment after approval and fulfillment of initial conditions, 40% as second installment after utilization of 70% of first installment, and 25% as third installment after utilization of 70% of second installment.
The project should be completed within 30 months from the date of approval. This includes land acquisition within 6 months of approval and financial closure within 6 months of land acquisition.
No, the cost of land is not eligible for grant assistance under the scheme. The SPV has to arrange for the land from its own resources.
As of now, 42 Mega Food Parks have been approved across the country, out of which several are already operational and the rest are in various stages of implementation.
Application Process
Expression of Interest
Submit EOI in response to the Ministry's call for proposals
In-Principle Approval
Evaluation by Technical Committee and approval by IMAC
Detailed Project Report
Submit DPR with technical and financial details
Final Approval
Final approval and signing of agreement with Ministry
Required Documents
For Expression of Interest
- Application in prescribed format
- Preliminary project report
- Details of promoters
- Proposed land details
- Financial capability documents
For Final Approval
- Detailed Project Report (DPR)
- SPV registration documents
- Land ownership/lease documents
- Term loan sanction letter
- Appraisal report from bank/financial institution
For more information, contact: info@mofpi.gov.in | Helpline: 1800-111-1990
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