Nod for three agro clusters in TG, AP

New Delhi: The Union Ministry of Food Processing Industries has approved two agro processing clusters (APC) in Andhra Pradesh and one in Telangana. The Telangana APC is the biggest of the three, worth Rs217.78 crore, whereas the two in Andhra add up to about Rs80 crore. The Telangana APC is based in the Ranga Reddy district, official sources told Bizz Buzz, adding that Gemini Edibles & Fats India Ltd is the project execution agency (PEA) or promoter.

Sri Lalitha Enterprises Industries Pvt Ltd is setting up a Rs48.66 crore APC at East Godavari. Aalamandha Food Park is doing the same at Vizianagaram with the total cost of Rs20.78 crore.

The Ministry of Food Processing Industries has approved grants of Rs10 crore each for the three projects, but no money has been released to the promoters so far.

The APC Scheme aims at development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on the cluster approach. This approach links groups of producers or farmers to the processors and markets through well-equipped supply chains with modern infrastructure.

Each APC under the scheme has two basic components. The first one comprises basic enabling infrastructure (roads, water supply, power supply, drainage, ETP, etc) and core infrastructure and common facilities (warehouses, cold storages, IQF, tetra pack, sorting, grading, etc.). The second component is about food processing units, which should be five with a minimum investment of Rs25 crore. The units are set up simultaneously along with the creation of common infrastructure.

At least 10 acres of land is required to be arranged either by purchase or on lease for at least 50 years for setting up of an APC.

APCs are set up by PEAs, which can be government, public sector organizations, joint ventures, NGOs, cooperatives, farmers’ producing organizations, private sector entities, etc. They are eligible for financial assistance.