A. Minimum 50 acres of contiguous land are required which should be free from any kind of encumbrance. The selection of land needs to be justified in terms of connectivity and availability of basic infrastructure such as approach road, power, water etc. and also in terms of availability of raw materials/market.
A. Land can either be purchased or can be taken on long term lease. In case of lease, the minimum period should be 25 years.
A. Yes, it is mandatory to have permission for Change of Land Use (CLU) from the concerned authority in case of agricultural land. CLU is not required in case the land is already in a designated industrial area.
A. Yes, it is mandatory to form an SPV under the Companies Act to execute the project. Land for the project has to be transferred in the name of SPV.
A. Possession of land for the project at the stage of EOI is not mandatory. The EOI proposals having possession of land with Change in Land Use (CLU) will be given due weightage during the evaluation and selection process.
However, it is mandatory for SPV to meet the condition of possession of a minimum 50 acres of continuous land with CLU for accordanceof Final approval to such project.
A.Requisite land for the project has to be arranged by the SPV. However, companies/individuals may approach Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC), Government of Andhra Pradesh to check availability of industrial land and seek assistance in procurement of land for the Mega Food Park project.
A. It is mandatory for an existing company to form a Special Purpose Vehicle (SPV). However, the member/s of the existing company may becomethe promoter/s of SPV. The SPV will be responsible for execution, maintenance and management of Mega Food Park. All the funds relating to the project will have to be in the accounts of the SPV.
A. The “eligible project cost” is the total project cost but excludes cost of land, preoperative expenses and margin money for working capital. However, interest during construction (IDC) as part of preoperative expenses and fee to PMC up to 2% of the approved grant would be considered under eligible project cost..
A. Anchor Investor in the SPV holding majority stake, with or without other promoters of the SPV, will be required to set up at least one food processing unit in the park with an investment of not less than Rs. 10 crore. The Anchor Investor/ one of the promoters will have at least 51% stake in such processing unit(s). The anchor unit has to be completed and commissioned along with the MFP. SPV is not allowed to set up any unit.
A. The responsibility of execution, ownership and management of the Mega Food Park would vest with a Special Purpose Vehicle (SPV). The criteria of forming the SPV are given below: i. SPV shall be a Body Corporate registered under the Companies Act.
ii. The combined net worth of the shareholders of the SPV should not be less than Rs. 50 crore. Each member in SPV should have a minimum net worth of 1.5 times of its proposed equity contribution in SPV.
iii. The Anchor Investor in the SPV holding majority stake, with or without other promoters of the SPV, will be required to set up at least one food processing unit in the park with an investment of not less than Rs. 10 crore.
A. The duly registered SPV having possession of minimum 50 acres of land along with permission for Change in Land Use shall accordingly be awarded maximum marks for criterion pertaining to possession of land. However, the possession of land shall be ascertained only on basis of registered Sale Deed/Lease Deed and relevant documents related to CLU status. In case of land allotted by Government of Andhra Pradesh, possession of land shall be ascertained on basis of Lease Deed or Possession Certificate issued by concerned Department
A. Yes. The SPV must ensure possession of land along with permission of Conversion of Land Use (CLU) for Industrial purposes in its own name. The land should be registered in the name of the SPV and cost of land will be considered as a part of total project cost based on registered Sale Deed/Lease Deed. In case of land acquired on long term lease the minimum period of lease should be 25 years. The Registered Lease Deed must provide for relevant Clause related to provision of “sub-lease” of developed plots in the Park to prospective units. Similar provisions for Sub Lease must also be mentioned in lease Deeds of the land allotted by the State Govt.
A. No. As per the guidelines of the Scheme, the SPV should have the land duly transferred and registered in its name for consideration of Final approval. At the stage of EOI submission/In-principle approval, the proposals confirming possession of land would qualify for additional weightage during evaluation process.
A.The member/s of the SPV should transfer the land in the name of the SPV. However, SPV has the option to purchase land from such member/s and allot requisite equity in proportion of the registered value of land, as per the Sale Deed/Lease Deed, to such members based on mutual agreement. In case of SPV member possessing the land, it will not be considered possession by SPV.
A. There is no cap on maximum equity that can be held by a member in the SPV. SPV may also be promoted by a single entity. In case the SPV is promoted by a single entity, the entire 100% equity shall be held by this entity. Minimum 20% equity is required to be held by the promoter/s.
A. APFPS has approved a panel of Project Management Consultants (PMC) having required experience in preparation of DPRs and in project implementation of infrastructure projects with requisite exposure to food processing sector. Any of these empanelled agencies may be engaged by SPVs/Applicants as Project Management Consultant.
A. No, it is not necessary to engage PMC before the submission of proposal against EoI. However, appointment of PMC is one of the condition which has to be fulfilled by project SPV before Final Approval is accorded to the project.
A.No. SPV shall only be responsible for ownership, development and management of the Mega Food Park and the revenue streams for SPV shall include income from long term lease of developed plots to units, income from rentals of Standard Design Factory Sheds for Micro and Small Enterprises and income from user charges of common facility by tenants in the Park. However, members/promoters in SPV are allowed to set up units in the Park. The Anchor Promoter in SPV shall need to set up a food processing unit in the Park with a minimum capital investment of Rs.10 Crs.
A.Only food processing industries/units that make food products fit for human and animal consumption are permitted to be set up in the Mega Food Parks. Packaging facilities of food products as ancillary to the food processing industries will also be eligible for setting up in the Mega Food Parks. However, setting up of alcoholic beverage unit as an anchor unit will not be allowed.
A. Yes. Such firms can join hands with Indian promoters to form the Special Purpose Vehicle and invest in the project by way of contributing equity. It may also be noted here that foreign direct investments in food processing sector is allowed under automatic route in India. However, adequate documents with regard to net worth and other relevant financial details in respect of such firms must be provided with the EOI proposal.
A. There is no minimum requirement of land for PPCs/ CCs. However, the land for the purpose shall be arranged by the SPV either by purchase or on registered lease. The land and / or infrastructure taken on lease for PPCs / CCs should be for a period of at least 25 years.
A. SPV is not permitted to sell the plots in Mega Food Park. The plots can only be given on lease to other entrepreneurs for setting up of food processing units in the Park.
A. The valuation of the immovable assets will be on the basis of circle rates (as on date of application) declared by the concerned State Government Department should be duly certified by the competent Revenue Authority. This valuation must be carried out within a period of 30 days preceding EoI bid submission date.
A. The net-worth in case of Companies would be calculated based on the definition of net-worth in the Companies Act 2013. However, the re-valuation reserves may be considered as part of the net-worth only if the same is reflected in the Audited Balance Sheet of the Company and continue to be reflected in the Audited Balance Sheet of the Company.
B. In case of land / building forming part of the networth, the ownership documents, duly authenticated by the competent State Revenue Authority shall be submitted. The valuation of the immovable assets on the basis of circle rates (as on date of application) declared by the concerned State Government Department should be duly certified by the competent State Revenue Authority. C. In case of investment in shares of the listed companies, proofs of the market value of the share at the time of calculation of the value of the investment shall be submitted.
D. In case of investment in unlisted companies, the latest audited financial statements along with complete schedules and notes forming part thereof, duly certified by the Statutory Auditors shall be submitted in order to calculate the value of shares in that company.
E. The miscellaneous assets shall be clearly specified and basis of calculation of their value, duly certified by the concerned Govt. approved valuer shall be submitted.
F. The above valuation must be carried out within a period of 30 days preceding EOI bid submission date.
G. In the case of proposed SPV shareholders, if there is cross holding of the networth amongst the Members (e.g. both a company as well as the shareholders that company are the proposed SPV shareholders), the net-worth of the company would be considered in full, however, net-worth of the individual would be considered only to the tune after discounting its shareholding in the company which is a proposed SPV shareholder.
A. Details of backward and forward linkages along-with documents in support of such linkage like ownership, existing facilities etc. has to be submitted along with the proposal.
A. Latest authentic data available in respect of marketable surplus of the focused crops in the catchment area has to be mentioned in the proposal. These may also be obtained from local concerned authorities of the catchment area like Agriculture Department/ Horticulture Department.