Integrated Mini Food Park Scheme

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Introduction

In pursuance to the Haryana Agri-Business and Food Policy notified vide no. 1/35/2017-41B-I dated 04.06.2018, the Governor of Haryana is pleased to formulate the Integrated Mini Food Park scheme as per the details given below:

1. Introduction

1.1

The Government of Haryana has formulated the Mini Food Park scheme as a part of Haryana Agri-business and Food Processing Policy 2018.

1.2

The Mini Food Park scheme shall be applicable to only “C” and “D” category blocks to support the growth of backward regions and promote balanced regional development.

1.3

The state government shall focus on developing agro-processing clusters in the form of Mini-Food parks by promoting food processing industry near production areas i.e. rural and backward regions.

1.4

The scheme aims at the development of modern infrastructure to encourage entrepreneurs to set up food processing units based on a cluster approach. These mini food parks will help in reducing the wastage of surplus produce and add value to the horticultural/agricultural produce.

1.5

There are certain capital-intensive common facilities required by food processing units, and if developed as common facilities, will encourage entrepreneurs to set up more food processing units. The lack of such modern infrastructure is hindering the development of the food processing sector.

2. Objectives of the scheme

2.1

To create modern infrastructure for food processing closer to production areas & to support the growth of backward regions and promote balanced regional development.

2.2

To provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer.

2.3

To create effective backward and forward linkages by linking groups of producers/farmers to the processors and markets through a well-equipped supply chain.

3. Salient Features of the scheme

3.1

At least 5 food processing units with an aggregate investment of minimum INR 15 crore will be set up in the Mini Food Park. The Mini food park shall be set up on a minimum of 10 acres of land.

3.2

Maximum of 10 Mini Food Parks shall be considered for Financial Assistance under this scheme during the Policy period which is 5 years from the date of Notification of the Scheme.

3.3

Food processing units will also be set up simultaneously with the creation of core infrastructure in the food park.

3.4

Mini Food Park may be developed by: i. The promoter(s)/developers willing to set up own units in the food park and also allow utilization of common infrastructure to other units in the area. ii. The promoter(s)/developers willing to develop common infrastructure for use by the units to be set up in the food park by other entrepreneurs. iii. The promoter(s)/developers willing to develop common infrastructure in the existing food park.

3.5

The extent of land required for establishing the Mini Food Park would depend upon the business plan of the promoter/developer, which may vary from project to project.

3.6

The food processing industries (except alcoholic products as well as units mentioned in the negative list in the food processing policy) may be permitted to be set up in these parks. Packaging facilities of food products as ancillary to the food processing industries may also be allotted land in the park.

4. Components of the Scheme

4.1

The scheme will have the following components: i. Basic enabling infrastructure: It will include site development, including development of industrial plots, boundary wall, roads, drainage, water supply, electricity supply, effluent treatment plant, parking bay, weigh bridges, solar plant, common office space, etc. ii. Core infrastructure: The common facilities will be based on the needs of the units which will be set up in these parks. iii. The above-mentioned facilities are illustrative, and the exact nature may vary from project to project.

4.2

Any modification in the common facilities/core infrastructure after approval of the proposal will only be approved by the State Level committee for Food Processing (SLC-FP).

5. Pattern of Assistance

5.1

The Mini Food Park Scheme envisages grants-in-aid @ 50% of eligible project cost with a maximum limit of INR 10 crore to be provided to promoter/developer only for developing any of the above-given facilities as approved by the SLC-FP.

5.2

A maximum of 10 Mini Food Parks shall be considered for Financial Assistance during the Policy period which is 5 years from the date of Notification of the Scheme.

6. Promoters/Developers

6.1

Promoters/Developers as individuals or organizations such as Govt./private/PSUs/Joint Ventures/NGOs/Cooperatives/Self Help Groups(SHGs)/Farmer Producer Organizations (FPOs)/Farmer Producer Companies(FPCs)/Private Sector/partnership firm/etc. will be eligible for financial assistance under the scheme.

6.2

The Promoters/Developers would be responsible for various aspects including formulating the Detailed Project Report (DPR), obtaining statutory approvals, achieving financial closure, and maintaining the enabling infrastructure and common facilities.

7. Eligibility criteria for the promoter/developer

7.1

The combined net worth of the promoter/developer shall not be less than 1.5 times the grant amount sought.

7.2

The promoter/developer needs to bring in at least 20% of the total project cost as equity/contribution.

7.3

The promoter/developer needs to bring in term loan from the Bank/Financial Institution for an amount not less than 20% of the project cost.

7.4

The land for the project shall be arranged by the promoter/developer either by purchase or on lease of at least 20 years.

7.5

Any entity/applicant which has availed financial assistance for a project under the scheme of the Government of India will not be eligible to apply for another project under the same scheme of the state government.

7.6

The promoter(s)/developers of the Mini Food Park approved by the state government will be eligible for availing financial assistance under other schemes of State/Central Governments, including MoFPI, for setting up of the unit(s) in these mini food park(s).

8. Inviting of Applications/Proposals

A proposal for the proposed Mini Food Park will be submitted online by the applicant in the prescribed application format (Annexure-II) along with the following information/documents:

a. Detailed Project Report (DPR) b. Final term loan sanction from the Bank/Financial Institution. c. A detailed appraisal note from the Bank/Financial Institution. d. Certificate of incorporation/registration of the applicant firm. e. Bio-data/background/experience of the project promoter(s)/developer. f. Documents in support of net-worth of the promoter/developer. g. Annual reports and Audited Financial Statement of Accounts of the applicant firm/company/cooperative/Partnership/Self Help Group, etc. h. Documents in support of land title in the name of the applicant or land lease, duly registered with the competent authority for not less than the period of 30 years. i. Undertaking by promoter/developer as per Annexure-IV. j. All pages of the proposal are to be properly numbered, and the proposal should contain an Index as the first page of the proposal indicating the various documents submitted along with page number.

9. Sanctioning and Disbursal Authority

9.1 Sanctioning Authority:

The State Level Committee for Food Processing (SLC-FP) under the chairmanship of Additional Chief Secretary Industries and Commerce Department, Haryana would evaluate and approve/sanction the proposals.

9.2 Disbursal Authority:

The Directorate of Industries and Commerce Department Haryana shall be competent to disburse the grant after compliance with the requisite formalities.

10. Release of Funds

The grants-in-aid will be released to the promoter/developer in three installments as below:

10.1 First installment

35% of the total approved grant will be released to the promoter/developer after incurring an expenditure of 35% of the bank term loan and 35% of promoter/developer contribution/equity on eligible project cost.

10.2 Second installment

40% of the total approved grant will be released to the promoter/developer after incurring an expenditure of 75% of the bank term loan and 75% of promoter/developer contribution/equity on eligible project cost.

10.3 Third & final installment

25% of the approved grant will be released to the promoter/developer on completion of the project.

11. Time Schedule

11.1

The time schedule for completion and operationalization of the project will be 24 months from the date of approval unless extended by the state government.

11.2

In case of non-adherence to stipulated timeline, the state level committee may consider imposing appropriate penalty on a case-to-case basis.

11.3

In case of non-adherence of timelines, a penalty of 1% of the quantum of installment amount due for release for that installment will be imposed for each month’s delay beyond the stipulated timeline.

11.4

In the event of the promoter/developer withdrawing from executing the project, and the project not being completed, the grant-in-aid amount released will be returned by the promoter/developer along with interest @ 12% p.a.

12. Project Monitoring and Evaluation

12.1

The industries department will periodically review the progress of the projects under the Scheme.

12.2

Pre and post-inspection would also be undertaken by the Industry officials and State Level Committee for Food Processing (SLC-FP) to find out the physical, financial, and operational progress as and when required.

12.3

The decision of the SLC-FP shall be final and binding on all concerned parties on the interpretation of the provisions of these guidelines and the matters related/incidental thereto.

13. Court’s Jurisdiction

13.1

Any dispute arising out of the selection of proposals and implementation of the approved project under this scheme guideline will be subject to Courts/Tribunals having jurisdiction over Chandigarh.

Dated Chandigarh.
DEVENDER SINGH
The 4th June, 2019
Additional Chief Secretary to the Government of Haryana, Industries & Commerce Department

Annexure-I
Criteria for proposals for setting up Mini Food Park

Turnover of the promoter claiming food processing experience shall be in at least two of the years out of the previous three and the current financial year.