These proposed projects will come up in Maharashtra, Karnataka and Punjab; new proposals to be examined for a similar venture in Uttar Pradesh
The Ministry of Food Processing Industries (MOFPI) has given in-principle permissions to three food parks in Karnataka, Maharashtra and Punjab. The government was in the process of approving four food parks (including the three which have already been approved) since the past four months. But the project proposal for the park in Uttar Pradesh had some lacunae, therefore, the in-principle approval has been granted only for the above-mentioned three food parks. The government will invite new proposals for the fourth food park in Uttar Pradesh this week.
Every food park will have a Special Purpose Vehicle (SPV) comprising around three companies and representatives from banks, financial institutions and the food processing ministry. The Karnataka food park will be developed in Mandaya, Kolar. The three companies involved in this project are Capital Foods Ltd (which holds 40% share in the company); Pantaloon Retail (30% share) and Chordia Foods (30% share). Chordia is a Pune-based manufacturer and exporter of pickles.
The Maharashtra food park will come up in Sindhudurg (in the district of the same name) and the three companies in the strategic alliance are Temptation Foods Ltd (40% share); NNR Biofuels (40% share) and Valecha Engineering Ltd (10% share). A few other minor players are also part of this project.
In Punjab, the food park will be developed in Fazilka (Firozpur district) led by International Farm Fresh Ltd which will have 16% share in the company. Sukhinder Singh and Associate will hold 34% share; Narain Export Import Corporation (10% share) and Citrus State Tahliwala Jatta will hold 1% in the project. The promoters will decide on how to distribute the balance stake.
"We have given in-principle approval to three food parks. We were supposed to give approvals to four but we could not find relevant project proposals. We would be soon inviting proposals for the remaining project," said Ashok Sinha, secretary, MOFPI.
The final proposals for these three projects (which have obtained in-principle approvals) will have to be submitted in the next six months for a final nod from the government before these ventures are initiated. The SPV for each project will require an investment of around Rs120 crore-Rs150 crore, which includes the government's contribution of Rs50 crore.
Every food park will have around 27 processing and ancillary units which will process about 1,80,000 tonnes per annum of raw material-primarily comprising fruits, vegetables, rice and spices. MOFPI had received 37 proposals for the four mega food parks out of which 16 were for Maharashtra, 10 for Karnataka, six for Punjab and five for Uttar Pradesh. In Punjab, Mrs Bector's Food Specialties
(a part of the Cremica Group), Brattle Foods Ltd, International Fresh Farm Products Ltd, Maninder Rice Mills, Kolkata-based LMJ Ltd, and an entrepreneur from the US have shown their interest.
In Karnataka, Capital Foods Ltd had shown interest in these food parks. In Maharashtra, Pantaloons Retail (India) Ltd, Paithan Mega Food Park, Temptation Foods Ltd, Dhoot Developers Pvt Ltd and Skil Infrastructure Ltd have shown their interest in these units. Temptation Foods Ltd is one of the applicants among the five with interest in the facilities in Uttar Pradesh.
The government is encouraging a public-private partnership model for setting up these food parks as these ventures will require huge investments. "We are encouraging three-four private players to come together to set up a food park so that the investments are shared. The government gives Rs50 crore as assistance for each food park, but that is not enough," said Mr Sinha.
Volume Growth Counters Drought
One of the sectors that was supposed to witness a slowdown due...
New Delhi: Driven by record sales in passenger car and two-wheeler segments, the Indian automobile industry posted its best ever monthly sales of 12,37,461 units in July, beating the previous high achieved in March 2010, reports PTI.
According to the figures released by the Society of Indian Automobile Manufacturers (SIAM) today, automobile sales grew by 31.5% to 12,37,461 units in July compared to 9,41,070 units in the same month last year.
"The growth in the automobile industry during July was mainly due to good growth in the passenger car segment, scooters and mopeds as new model launches, penetration into rural markets and availability of finances continue to boost sales," SIAM director general Vishnu Mathur told reporters here.
He said the previous best ever sales were achieved in March this year with 12,26,944 units.
Passenger car sales in July were also the best ever attained in a month at 1,58,764 units, beating the previous high of 1,55,600 units in March. Sales jumped by 37.95% over 1,15,084 units in July 2009.
Passenger car leader Maruti Suzuki's domestic sales grew by 26.83% to 76,111 units in July, while rival Hyundai Motor India also registered 24.22% growth at 28,811 units. Tata Motors' sales jumped by 69.31% to 24,613 units during the month under review.
Mr Mathur also said the total two-wheeler sales achieved in July at 9,38,514 units were the all-time high, surpassing the previous record of 9,36,555 in May. Sales of two-wheelers were up 30.41% over 7,19,656 units in July 2009.
"Availability of finance and hardening of interest rates will be challenges, which we are seeing on the horizon now, in the months to come," he said.
Motorcycle sales in India during July also went up by 30.09% to 7,10,621 units compared to 5,46,233 units in the year-ago period.
The country's largest motorcycle maker Hero Honda posted a growth rate of 13.96% in sales at 3,89,795 units in July 2010. Rival Bajaj Auto saw sales soaring by 76.01% to 1,92,138 units.
While Chennai-based TVS Motor Company posted a 37.51% growth at 43,888 units in July, Honda Motorcycle & Scooter India (HMSI) saw its bike sales jumping by 43.30% to 55,540 units.
In the scooter segment, sales jumped by 35.65% to 1,67,195 units against 1,23,259 units in the year-ago period, SIAM said.
HMSI's scooter sales were up by 13.79% at 75,180 units, while TVS Motor's scooter sales grew by 46.06% in July at 38,453 units. Hero Honda's scooter sales jumped by 39.87% to 24,776 units last month.
The commercial vehicles segment carried forward the upward trend that began in July 2009, with sales in July going up by 36.99% to 51,481 units from 37,580 units in the year-ago period, according to the latest SIAM data.
Light commercial vehicle sales rose 25.28% in July to 26,912 units from 21,481 units. Medium and heavy commercial vehicle sales surged by 52.61% to 24,569 units compared to 16,099 units in the same month last year.
Three-wheeler sales during July were up 25.44% at 45,373 units compared to 36,171 units, SIAM added.