ip uk development of iqf of food and ... - invest uttarakhand

Government of Uttarakhand

Establishing unit for Individually Quick Freezing of Fruits and Vegetables at Haridwar

Department of Horticulture and Food Processing

08 September 2020

Contents

Advantage India

Uttarakhand – Key Credentials

Uttarakhand – Competitive Advantage

Project Information

Project Financials

Infrastructure Availability

Policies, Schemes & Incentives

Key Contacts

08 September 2020

Advantage India (1/2)

► Food processing sector, valued at USD 322 billion in 2016*

► Food processing considered as one of the sunrise sectors in India*

► India amongst the top 10 countries in terms of land area under organic agriculture*

► Globally, India ranks 2nd, next only to China, in total food production*

► India produced around 1.35 million MT of certified organic products (2015-16)*

INDIAN HORTICULTURE SECTOR

HIGHLIGHTS OF HORTICULTURE SECTOR

Expected to

grow to

USD 543

billion by

2020*

Expected

CAGR of

14.6%*

Ranks 1st in

production

of Milk,

Bananas,

Mango,

Guava,

Papaya,

etc*

Ranks 2nd

in

production

of Green

peas,

Potato, Tea,

Tomato,

etc*

Country

produced

around 1.35

million MT of

certified

organic

products

(2015-16)*

60

Agri-Export Zones*

282

Cold Chain Projects*

34

Million MT of Cold Storage Capacity*

41

Mega Food Park*

KEY GOVERNMENT INITIATIVES

* http://foodprocessingindia.co.in/

08 September 2020

Advantage India (2/2)

Diverse Attractions

► Uttarakhand is blessed with a variety of soils and agro-climatic

conditions, ranging from Sub-Tropical to Alpine, which is a mega

biodiversity hotspot

Robust Demand

Attractive

Opportunities

► 100% FDI is permitted, under the automatic route for Floriculture,

horticulture, apiculture and cultivation of vegetables and

mushrooms under controlled conditions

► The major food categories and their share in the food processing

sector are as follows:

• Dry food grocery: 34.7%

• Milk & dairy products: 16%

• Fresh produce: 15.6%

• Perishables: 8%

• Spices: 6%

• Others: 19.7%**

EVOLUTION OF THE HORTICULTURE SECTOR

Investment

Opportunities

► Up to 100% FDI is now permitted for companies looking to

undertake Single Brand Retail Trading (SBRT) in India

► FDI up to 51% is permitted under the government approval route

for Multi Brand Retail Trading (MBRT)

► FDI upto 100% is permitted for wholesale cash and carry trading,

under the automatic route

► FDI in e-commerce is only permitted for a marketplace model of e-

commerce i.e a market-place model providing an IT platform on a

digital/ electronic platform to act as a facilitator between buyers

and sellers

► India's exports of processed food was INR 27,257.69 Crores in

2017-18*

► Around 1.77 million persons engaged in food processing and

aggregate output is of around USD 144.6 billion**

*http://apeda.gov.in/apedawebsite/six_head_product/PFV_OPF.htm

**http:/www.investindia.gov.in/sector/food-processing

http://apeda.gov.in/apedawebsite/six_head_product/PFV_OPF.htm

08 September 2020

Uttarakhand –Key Credentials (1/3)

The State of Uttarakhand was formed on 9th November 2000 as the 27th State of India,

when it was carved out of northern Uttar Pradesh. Located at the foothills of the Himalayan

mountain ranges, it is largely a hilly State, having international boundaries with China (Tibet)

in the north and Nepal in the east. The state is close to the National Capital Region and has

excellent connectivity with its neighboring states.

Uttarakhand being a Himalayan state enjoys a proven advantage and monopoly over the

availability of some valuable Medicinal & Aromatic Plants in the State. Some of the key

factors which supplement cultivation of these plants in the State include:

➢ The state also has a unique advantage of producing offseason vegetables in hilly areas

with late production of litchi in Dehradun and Champawat districts (towards the end of

season)

➢ A total of 148 major food processing units (which include all the segments of food) have

been established in the State out of which 102 units are Horticulture based

UTTARAKHAND STATE OVERVIEW

HORTICULTURE SECTOR IN UTTARAKHAND

➢ Uttarakhand has become a leading fruit cultivator in India

➢ Ranked No. 1 in production of Peaches in India

➢ Ranked No. 1 in production of Plums in India

➢ Ranked No. 2 in production of Walnuts in India

➢ Ranked No. 2 in production of Pears in India

➢ Ranked No. 3 in Apple Cultivation in India

*http://foodprocessingindia.co.in/state-profile/uttarakhand/?id=6&stateid=756&name=UTTARAKHAND

08 September 2020


PROMINENT RESEARCH INSTITUTIONS OF STATE

G.B. Pant University of Agriculture and Technology, Pant Nagar, U S Nagar

Uttarakhand University of Horticulture & Forestry, Bharsar, Pauri

Herbal Research Development Institute, Gopeshwar, Chamoli

Centre for Aromatic Plants, Selaquin, Dehradun

Forest Research Institute, Dehradun

Central Institute for Temperate Horticulture, Mukteshwar, Nainital

Vivekanada Parvatiya Krishi Anusandhan Sansthan, Almora

08 September 2020


****Uttarakhand at a glance 2016, DES, GoUK

*http://indiafoodprocessingmap.nic.in/

UTTARAKHAND SNAPSHOT

GSDP growth rate of

CAGR of 10.34%

(2018-19)***

EXISTING INFRASTRUCTURE

Annual turnover of Horticulture

crops in State (approx. Rs. 2300

crore)

Agriculture exports grew at CAGR of

16.45% pa over FY 2010-18 to reach

USD 38.21 bn**

08 September 2020

Uttarakhand –Competitive Advantage

ADVANTAGE: UTTARAKHAND

The State has a stable

political environment with

successive governments

that have been committed

towards creating a

progressive business

environment

The average literacy level in

State is high (78.80%).

A large pool of talented

human resources is available

State has research oriented

institutes, such as, Forest

Research Institute, HRDI

Incentives to farmers on

cost of cultivation &

processing of Horticulture

and Floriculture Crops

Blessed with variety of

soils and agro-climatic

conditions (Sub-Tropical

to Alpine); biodiversity

hotspot for Horticulture

and allied products

Close proximity to the

national capital of Delhi.

One of the leading Fruit

cultivating state of India

Variety of soils

and agro-climatic

conditions

Favorable

location and

abundant

resources

Stable Political

Environment

Adequate labor

pool and

Research

Institutes

Policy and Key

Incentives

Evolving

industrialisation

facilitating

growth

Farmers in Uttarakhand

get more electricity as

compared to farmers at

subsidized rates

Presence of renowned

universities like G.B. Pant

University of Agriculture and

Technology and Uttarakhand

University of Horticulture &

Forestry

Abundant supply

of electricity at

reasonable cost

Universities

dedicated to

Agriculture and

Horticulture

KEY PLAYERS

The state’s GSDP increased

at CAGR of 10.34% (2018-

19)

08 September 2020

Project Information

PROJECT DESCRIPTION

PROJECT AT A GLANCE

Project Name Establishing unit for IQF of Fruits and Vegetables

Location Haridwar

Production Capacity 2200 Metric Tonne

Area 2 Acre

Focus Sector Horticulture

Project Timelines ➢ 30 Years Concession Period (if land leased, it would be for 30 years)

➢ One Year Establishment Period

IQF (Individually Quick Freezing) is the latest & has become most acceptable way of

preservation. The Preference for IQF method of preservation is because IQF fruits &

vegetables are the most desirable alternative to fresh fruits & vegetables. It retains all the

freshness, flavors, appearance and nutrition value. In fact IQF vegetables & fruits are as

natural as nature intended it. In India IQF of fruits & vegetables technology is being used

for the last 20 years. It has become well-accepted technology. The plant is expected to

have the production capacity of 2200 MT and will produce approximately 1200 MT of

IQF Peas, 200MT each of IQF Litchi, IOF Mango, IQF Apricot, IQF Okra and IQF

Cauliflower.

APRICOT BEANS

CAULIFLOWER LADY’S FINGERPEAS

MUSHROOM

08 September 2020

Project Information

PROPOSED PROJECT SITES

The raw material will be procured from the local farmers of Haridwar and adjacent district of

Dehradun. In case of additional requirement the same can be procured from adjacent states of Uttar

Pradesh, Haryana and Punjab. Raw material production in Haridwar and Dehradun are given below:

➢ Peas production in Haridwar and Dehradun is approximately 19335 MT

➢ Mango production in Haridwar and Dehradun combined is 34047 MT

➢ Lichi production in Haridwar and Dehradun combined is 10972 MT

➢ Production of Cauliflower, Aonla and Okra in Haridwar and Dehradun combined is 24788 MT, 683

MT and 9317 MT, respectively

➢ Unskilled and semi-skilled labour is available in the State. There are many training centres

(including two Government Food Science Training Centres) and institutes in the State offering

training in food processing and allied areas

➢ About 20 Food Processing units are being successfully run in the district of Haridwar

RAW MATERIAL AVAILABILITY

➢ India is one of the biggest emerging markets, with over 1380 million populations and 300 million

strong middle class

➢ Demand for processed/convenience food is constantly on rise due to rapid urbanization,

increased literacy and rising per capital income

➢ The processed fruits and vegetables industry sector is growing not just in India but globally

Although, the volume of processed fruits and vegetables consumed in India is very low, but the

demand is growing during due to increased awareness about the nutritional values

➢ Considering its nutritional value, there is good demand for fruit products in hotels, restaurants,

bus stands, defense canteens, picnic spots, railway canteens etc.

➢ Substantial demand for processed food locally (within State), in neighboring states like U.P,

Haryana, Punjab, and in Delhi NCR as well

MARKET

08 September 2020

Project Financials

**Note: Includes land development cost as well

Type of Cost Amount (in Rs Lakh)

Land Cost and Land Development** 500

Building and Civil Works 250

Plant and Machinery 650

Miscellaneous Fixed Assets 20

Preliminary and pre-operatives 10

Provisional and contingencies (Variable cost) 15 per annum

Margin money for working capital (Variable Cost) 150 per annum

Total cost of the project 1595

► INDICATIVE PROJECT COST

Project Establishing unit for IQF of Fruits and Vegetables

Land required Approximately 2.0 acre

Land Cost 200* INR Lakh

*Note: As per rates of IIE Haridwar (@ INR 6000 per sq mtr)

► INDICATIVE COST OF LAND

08 September 2020

Project Financials

INDICATIVE MANPOWER REQUIREMENT

Category of Worker

Number of Employees

Skilled Unskilled

Food Technologist 1

Supervisors 2

Accounts 1

Administration (including HR and Marketing) 4

Refrigeration 2

Boiler Supervisor 2

Laboratory 2

Labour 50

TOTAL 15 50*

*The above figures are for envisaged employees, additional employees may be hired as perrequirements

08 September 2020

Infrastructure Availability

Connectivity of Haridwar with the major towns

Air

Road

Rail

► Project site is well connected with major cities through National and State

Highways

► In Uttarakhand construction of all weather roads is ongoing which will

ensure very good connectivity in future with Main processing unit

► Project site is likely to come under the influence zone of Amritsar Kolkatta

industrial corridor

► Haridwar is well connected with the other districts of the state like

Dehradun, Nainital, UdhamSingh Nagar, Rishikesh

► Haridwar is well connected with major cities of the country like New Delhi,

Mumbai, Kolkatta, Chennai, Hyderabad, Bangalore

► Rishikesh – Karnprayag railway line is also under construction which will

ensure cheapest, fast, reliable connectivity of project site and major cities

► Nearest airport is located at a distance of 38 kms at Dehradun

► Flights available from Dehradun to New Delhi, Mumbai, Lucknow,

Bangaluru, etc

► Presence of air strips at Gochar (Chamoli), Naini Saini (Pithoragarh) and

Chinyalisaur (Uttarkashi). Would be connected under UDAN scheme soon

08 September 2020

Policies, Schemes & Incentives

Central Government

Schemes and

Policies

Central Government

Schemes and

Policies

► Mission For Integrated Development Of Horticulture

► Cold Chain Scheme under Pradhan Mantri Kisan Sampada Yojna

► Industrial Development scheme for Himachal Pradesh &

Uttarakhand 2017

CENTRAL GOVERNMENT INITIATIVES

1. For Centrally sponsored scheme titled “Mission for Integrated Development of Horticulture”, sub

scheme Horticulture Mission for North East and Himalayan States (HMNEH) state government

department “Department of Horticulture and Food Processing” is the implementing agency.

This scheme is Credit linked back ended Capital Investment assistance of 50% of eligible cost of

technical civil work and plant and machinery (maximum up to 400 lakh)

2. Under Pradhan Mantri Kisan Sampada Yojana, Ministry of Food Processing Industries (MOFPI),

Government of India, the financial assistance under the scheme is limited to a maximum of Rs. 10

crores per project in relation to technical civil works and eligible plant and machinery subject to the

following:

For value addition and processing infrastructure including frozen storage / deep freezers

associated and integral to the processing grant in aid @ 50 % for general areas and @ 75% for

north east states, Himalayan states, ITDP areas and islands, will be provided

3. Industrial Development scheme for Himachal Pradesh & Uttarakhand 2017. Two incentives under

this scheme include “Central Capital Investment Incentive for Access to Credit (CCIIAS)” and

“Central Comprehensive Insurance Incentives (CCII)

1. Project sites are spread in various districts in the State. Various incentives and concessions, suchas, Interest subsidy, rebate on stamp duty and state capital subsidy, etc are available as percategory of sites specified in the MSME Policy 2015

2. Those units established in Mega Food Park area, would be eligible for following fiscal incentivesby the State Government (as per GO No 2237(2)/XVI(1)/16-05(20)/2012 dated 20.10.2016):

➢ 100 % exemption of Stamp Duty for first time purchase of land / lease deed

➢ 100 % exemption of marketing fee since inception of commercial production for 5 years

➢ Interest subsidy at the @ 6 % per year for 5 years on bank loan

➢ Electric tariff will be give as per agriculture tariff (@ Rs 1.55 per unit) as per norms ofUttarakhand Electric Regulatory Commission since Inception of economic production for 5years. Uninterrupted supply of power (electricity) would be ensured

STATE GOVERNMENT INITIATIVES

State Government

Schemes and

Policies

► State Food Processing Mission (under Department of Horticulture

and Food Processing)

► MSME Policy 2015

► Mega Food Park

Key Contacts

Department of Horticulture and Food Processing

Investment Facilitation Centre

Address Directorate of Industries

Industrial Area, Patel Nagar, Dehradun, Uttarakhand

Website www.investuttarakhand.com

Email ID [email protected]

Toll Free 18002701213

Phone +91-135- 2559898, 2559987

Address Udyan Bhawan, Chaubatiya,

Ranikhet

District Almora

And

For visit

Mission Director,

Horticulture Mission Directorate

Government Garden, Circuit House

Dehradun - 248003

Nodal Person Director, Horticulture & Food Processing

Website http://www.shm.uk.gov.in/

Email ID [email protected]

Phone +91-135-2759799, 0135-2759796

http://www.investuttarakhand.com/

ip uk development of iqf of food and ... - invest uttarakhand

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