In order to boost the food processing sector, the government has approved setting up of 12 mega food parks during the 12th Five Year Plan period (2012-17) with an allocation of Rs 1,714 crore, which would lead to creation of adequate infrastructure in the country with efficient supply chain management from farm gate to retail outlet.
The estimated investment in each project is around Rs 100 crore in common facilities and leverages an additional investment about of Rs 250 crore. In each Project, around 30-40 food processing industries are expected to be setup. To set up these food parks, the central government will provide 50 percent grant of the eligible project cost in general areas and of the 75 percent of eligible project cost in difficult and hilly areas subject to maximum of Rs 50 crore per project.
Further, the government expects that the annual turnover of each project to be around Rs 500 crore and food parks would generate about 40,000 direct and indirect jobs and likely to benefit 6000 farmers/producers directly and 25,000-30,000 farmers indirectly. The government has also approved an allocation of Rs 786 crore for setting up of cold chain projects in the 12th plan period with a view that cold chain storages will reduce around 6-8 percent wastage of perishable products.
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