The Union Cabinet Committee on Economic Affairs (CCEA) on 6 May 2015 relaxed the provision related to investment limit by the Central Government agencies in Mega Food Parks by allowing them to invest up to 100 percent on their equity holding in the Special Purpose Vehicle (SPV) from the present 26 percent.
The new regulation is expected to trigger further investment in the food processing sector and ensure smooth implementation of the Mega Food Parks Scheme (MFPS) particularly projects at initial phases of the implementation.
Apart from the above decision, the Cabinet also decided to give weightage to those proposals for new MFPs which are focused on the processing and preservation of perishable food products.
About Mega Food Parks Scheme (MFPS)
• The Scheme was launched in 2008 by UPA Government. Its focus is to overcome the bottlenecks in the food supply chain due to which around 33 percent food is wasted in India making it the largest food waster in the world.
• For execution of a MFP a Special Purpose Vehicle (SPV) will be set up with or without the involvement of government agencies.
• A MFP entails an area of a minimum of 50 acres and works in a cluster based approach based on a hub and spokes model. Union government provides a financial assistance of up to 50 crore rupees to set up a MFP.
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What: Increased to 100 percent
When: 6 May 2015