labels: economy - general
Indias first private sector food park news
Venkatachari Jagannathan
15 December 2001
Chennai: Development work at Indian Food Park, Virudhunagar, the countrys first private sector food park, is progressing at a good pace. The 150-acre food park coming up in the food-processing belt of Tamil Nadu is promoted by the Rs 5-billion V P S Ayyemperumal Nadar and Sons group. The group consists of around 30 companies having interests in spinning, cold chain, edible oils, spices, oleoresins and other agro products.

The park will be developed in two phases. The first phase involves development of 68 acres to accommodate 42 units, says project consultant M Kaja Hussian of the Madurai-based City Freezers. The first phase involves construction of a cold storage, warehouses and other basic infrastructure like roads and lighting.

The Rs 12-crore project outlay will be met by a promoter contribution of Rs 4 crore and an equal amount from the Central government as a grant. Financial institutions will provide the remaining Rs 4 crore as a loan, says Indian Food Park director A V S Dilipan.

Promotion of food processing parks and agro export zones are the two concepts advocated by the Union ministry of food processing industries. The ministry also gives Rs 4 crore as grant for approved food parks.

Detailing about the facilities provided by Indian Food Park for investors, Hussian says: The park will have its own accredited food-testing laboratory so that food companies need not got to CFTRI, Mysore, for testing their products. In addition, there will be a common effluent treatment plant, a cold storage and weighing facilities. There will be a single-window facility for licence procurement.

As the power tariff works out to Rs 5.50 per unit, a 2-mw captive power plant fired by agro waste is also planned here. For units that are season-based, we can supply labour in times of need. Individual units need not employ large labour force for a whole year, he says.

As the park is also expected to attract packaging units, small food-processing units need not have a separate packaging line. They can subcontract the work to a full-fledged packaging unit, Hussian says. Currently, several pickle-makers in the Virudhunagar belt are transporting their bulk product to Chennai for retail packing.

Hussain says food-processing units located in south Kerala are keen on shifting their operations to Indian Food Park to take advantage of a low labour cost and a peaceful working atmosphere. Cashew, dates and gherkin processing involves high labour force and hence Kerala units are showing keen interest, says Hussian. We have sold space for seven units and we expect to attract at least 20 units to start functioning from next year.

 



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Indias first private sector food park