The State government has permitted the the State Industrial Infrastructure Corporation to incorporate a special purpose company (SPC) for the development of a mega food park at Thotapalli village in Agiripalli mandal of Krishna district.
The SPC— APIIC Food Park Limited — would have 100 per cent subsidiary company of the APIIC initially subject to condition that it should get prior approval of the State government for inclusion of shareholders in the SPC.
Cluster-based approach:- The APIIC proposes to bring in a private partner at a later point for its operations, maintenance and other activities. The development comes after the Union Ministry of Food Processing Industries has given its approval for setting up of a mega food park at Agiripalli. The proposed mega food park would be located in an area of at least 50 acres and it would work in a cluster-based approach based on hub and spokes model. The proposed food park at Agiripalli is one among the 42 mega food parks approved by the Centre across the country.
The total cost of the project is pegged at Rs. 184.88 crore of which, Rs. 172.6 crore had been earmarked as eligible project cost. The APIIC would hold an approved equity of 56.73 per cent in the project with its contribution amounting to Rs. 104.88 crore. The Union Ministry, on its part, had agreed to give grant-in aid of Rs. 50 crore for the project and this would form 27.04 per cent equity. The government had kept option open to mobilise the balance Rs. 30 crore, forming 16.23 per cent of the total project cost, as debt.