The Scheme of Mega Food Park provides a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers so as to ensure maximizing value addition, minimizing wastage, increasing farmers income and creating employment opportunities particularly in rural sector. The Mega Food Park Scheme is based on “Cluster” approach and envisages creation of state of art support infrastructure in a well-defined Agri / Horticultural zone for setting up of modern food processing units in the industrial plots provided in the park with well-established supply chain. Mega food park typically consists of supply chain infrastructure including collection centers, primary processing centers, central processing centers, cold chain and around 25-30 fully developed plots for entrepreneurs to set up food processing units.

Project Components:

• Collection Centers and Primary Processing Centers (PPCs): These components have facilities for Cleaning, Grading, Sorting & Packing, Dry Warehouses, cold stores including pre-cooled rooms, ripening chambers, reefer vehicles, storage vehicles, etc.

• Central Processing Centers (CPC): Facilities like Testing Laboratory, Cleaning, Grading, Sorting and Packing Facilities, Dry Warehouses, Specialized storage facilities including Controlled Atmosphere Rooms, Pressure Ventilators, variable Humidity Stores, Pre-cooling stores, Cold Chain Infrastructure including Vans, Packaging Unit, Steam Sterilization Units, Steam Generating Units, Food Incubation cum Development Centers etc.

• Each project on an average it will have around 25-30 food processing units with a total investment of Rs.250 crores that would provide annual turnover of about Rs.450-500 crores and Each Mega Food Park which is fully operational will also benefit about 25000 farmers.

Pattern of Assistance:

• The Scheme shall provide a capital grant at the rate of 50% of the eligible project cost* in general areas and at a rate of 75% of eligible project cost in difficult and hilly areas and subject to maximum grant up to Rs. 50 crore per project.

• *Eligible Project cost is known as total project cost, excluding the Land Cost, Pre-operational expenditures and marginal money for working capital. 

• In the interest of implementation of the projects, a Program Management Agency (PMA) is appointed by the Ministry to provide management, capacity building, coordination and monitoring support and also other promotional activities by the Ministry. For this the Ministry will charge a separate amount of 5% of overall grants available.

Release of Grant:

The grants under this scheme will be released in 4 Instalments of 30%, 30%, 20% and 20%, subject to various parameters of the scheme, as per the following schedule:

• 1st Instalment of 30% of grant under the scheme is released after ensuring expenditure of at least 10% of the eligible project cost.

• 2nd Instalment of 30% of grant under the scheme is released after proportionate expenditure by special purpose vehicle (SPV) from Bank Term Loan and equity equivalent to amount released as 1st Instalment.

• 3rd Instalment of 20% of grant under the scheme is released after proportionate expenditure by special purpose vehicle (SPV) from Bank Term Loan and equity equivalent to amount released as 2nd Instalment.

• Fourth and Final Instalment of 20% of grant under scheme is released subject to successful completion of project and commencement of operations.