Government of Uttarakhand Establishing unit for Individually Quick Freezing of Fruits and Vegetables at Haridwar Department of Horticulture and Food Processing
Government of Uttarakhand
Establishing unit for Individually Quick Freezing of Fruits and Vegetables at Haridwar
Department of Horticulture and Food Processing
Page 2 08 September 2020
Contents
Advantage India
Uttarakhand – Key Credentials
Uttarakhand – Competitive Advantage
Project Information
Project Financials
Infrastructure Availability
Policies, Schemes & Incentives
Key Contacts
Page 3 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/
Page 4 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
Page 5 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
Page 6 08 September 2020
Uttarakhand –Key Credentials (2/3)
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
Page 7 08 September 2020
Uttarakhand –Key Credentials (3/3)
****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**
Page 8 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)
Page 9 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
Page 10 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
Page 11 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
Page 12 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
Page 13 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
Page 14 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