To set up plug&play facilities, 100% capital Infra. to be borne by Govt
With an aim to substantially reduce post-harvest losses faced by farmers and to provide them with remunerative prices, the Government of Andhra Pradesh as part of its food processing policy is looking to establish secondary food processing units in the state on plug & play methodology.
This is noteworthy as 100% of the capital infrastructure investment will be done by the government.
As the CM, Mr Jagan Mohan Reddy has a keen focus on farmers welfare, the government thus aims to make Andhra Pradesh one of the most preferred destinations for food processing thereby intending to increasing farmers’ income.
‘Our state’s food processing policy is aimed at creating value addition to the farmers’ produce and insulating them from the unpredictability of market fluctuations while providing them with remunerative prices’ said Mr Chiranjiv Choudhary, IFS, secretary AP Food processing society speaking exclusively to Vizag Industrial Scan.
The government is in fact adopting two strategies one in which it is bearing all the capital investment including the deploying of machinery (plug & play) while the second one is where it is providing available land through APIIC for companies and investors wanting to come and set up their own infrastructure thereby investing capital themselves.
‘The plug and play model is a unique model in the sense that we ourselves are trying this for the first time’ noted Mr Chiranjiv.
Being planned for all 26 locations i.e. one in each district it is being envisaged to be completed over two phases wherein the government will be spending a mammoth Rs 3500 crores on this.
‘To assist us in this endeavour of ours SIDBI has provided us with a loan of Rs 1000 crores for creating the necessary infrastructure,’ said the secretary.
As per details these secondary food processing units shall be fully built and constructed by APFPS including the plant and machinery as per global standards and requirements of the selected operating company. These units will be given on Lease, Operate, for a lease period of 15 years (Extendable).
In phase I GoAP looks to finalize 22 bidders (i.e. 13 in millet processing & 9 in fruits, vegetables, spices etc.) by the end of this fiscal i.e. FY 23.
The selection of the bidders will be done through a transparent bidding process wherein a minimum 4% of the project cost is to be borne by the bidder along with 1% of the registration value of the lease of the land.
‘We hope to finalise all the 22 bidders by the end of this fiscal’ said Mr Chiranjiv.
Andhra Pradesh Food Processing Society (APFPS) will be the Nodal Agency for the development of these units.
Concept & Methodology:
Product specific processing units will be established by APFPS. These Commodity / Product specific secondary food processing industries will be established in proposed constituencies where related raw material is available in surplus.
These processing units will be built in accordance with the current processing trends and modern infrastructure meeting global standards.
Reputed and credible food companies/ industries/MNCs with established markets (National / International presence) having expertise in handling bulk volumes capable of absorbing the surplus volume shall be given preference.
100% capital investment will be done by GoAP through APFPS for setting up of secondary food processing units and shall be given to reputed MNC’s for O&M operations with nominal lease.These unit(s) shall be given on long lease for a block period of 15 years to the reputed agency(s) on a fixed nominal fee on Annual basis pursuant to the selection process during the RFP stage.