A Food Park is a sector-specific industrial park where Developed Land and common facilities such as Internal roads. Power, Water supply are provided to entrepreneurs for setting up manufacturing units in food processing. This is a step ahead from the stage where the entrepreneur needs to procure the Land and arrange for all additional infrastructure on its own causing huge expenditure of time and added hassles.
The Mega Food Park scheme took this even a step further. Under this scheme launched in 2008, the Park would provide common facilities such as water, electricity and effluent treatment apart from specialized facilities like cold storage, warehousing, logistics, backward and forward integration through the network of Primary Processing Centres (PPC) and Collection Centres (CC) connecting the Central Processing Centre (CPC). Thus Mega Food Park is an includive concept that aims to establish direct linkages from Farm to Processing to Consumer Markets. This structure is based on a Hub and Spoke model. The success of a Mega Food Park is hinged on the efficient logistics that link the CCs to PPCs to CPC.
The Government provides Financial assistance upto Rs 50 Crore to set up modern infrastructure facilities for Food Processing at Mega Food Parks.
The project is executed through a Special Purpose Vehicle (SPV). It is a Company registered under the Companies Act and is required to have at least 3 entrepreneurs or business units independent of each other with no common directors.