Bihar denied chance to set up mega food parks

The Union food processing ministry has not included Bihar in the list of 10 states which would have mega food parks. The state has thus been denied the opportunity to establish two such parks at Muzaffarpur and Bhagalpur.

Union food processing minister Subodh Kant Sahay, during his tenure as the junior Union minister in the department, had announced at a state potato conference held at Patna in the mid-2008 that two mega food parks would be set up at Muzaffarpur and Bhagalpur with the support of the Centre.

The state NDA government had assigned the job of setting up two mega food parks to Infrastructure Leasing and Financial Services (IL&FS) right from conceptualisation to commissioning.

The state government had framed its food processing policy in December 2008 with a pledge to develop at least two mini food parks at Muzaffarpur and Bhagalpur. It had also announced a scheme for integrated development of the food processing sector.

In its food processing policy, the state government had said that the state has an excellent climate with fertile soil and abundant water for cultivation of a diverse range of food grains, fruits and vegetables. No wonder, the state is the largest producer of delicious litchi and nutritious makhana.

Sensing a political reason for non-inclusion of Bihar among the states to have mega food parks, deputy chief minister Sushil Kumar Modi told that Bihar-born Subodh Kant Sahay was elected MP from Jharkhand and as a UPA minister, he included Jharkhand among the 10 states where mega food parks would be established.

Modi said that the Bihar government would renew its demand before the Centre for establishment of two mega food parks in the state.

IL&FS agronomist Amitabh Bhattacharya said the central scheme for setting up mega food parks was more lucrative as it had a provision for a grant of Rs 50 crore or 50 per cent of the total project, whichever is minimum, to the special purpose vehicle (SPV).

But the Bihar government, despite having less resources, has announced providing Rs 15 crore or 20 per cent of the total project cost, whichever is less, to the SPV under the public-private partnership (PPP) mode for setting up the mini food park.

At Kahalgaon in Bhagalpur district, a piece of land has been earmarked for setting up a mini food park, but Bihar Agro Products, which was selected as its SPV, does not have enough fund to go for it, Bhattacharya said.

On the other hand, land has not yet been made available at Muzaffarpur for the establishment of a mini food park, he said, adding that two industrialists engaged in food processing industry and K P S Keshri and Kedia brothers are interested in getting the job of the SPV, but they lack fund.

He said local entrepreneurs were initially urged to become SPV. Investors from other states would be interested only if the Centre includes Bihar under its lucrative grant for setting up mega food parks, he added. link

Bihar to provide Rs 15-cr grant for food parks in Muzaffarpur and Bhagalpur

The Bihar government has decided to provide a grant of Rs 15 crore to entrepreneurs and investors interested in developing food parks in Muzaffarpur and Bhagalpur as special purpose vehicle (SPV) in fruit and vegetable clusters.

“We have decided to give a grant of Rs 15 crore to those interested in developing the food parks as SPV in fruits and vegetables,'' state Industries minister, Mr D C Yadav said on Friday.

The proposed food parks would have common infrastructure and research and development, he said, adding the food parks would serve to create modern enabling infrastructure for food processing units in the state with farm-to-market linkages.

Mr Yadav said the initiatives were being made under the Bihar Food Processing Policy, 2009, to boost the agriculture sector.link