Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA

MINISTRY OF AGRICULTURE

DEPARTMENT OF AGRICULTURE & COOPERATION

 RAJYA SABHA

UNSTARRED QUESTION NO. 3427

TO BE ANSWERED ON 10/12/2011

 Public-Private-Partnership for Post-Harvest Infrastructure

 

3427. SHRI RAJEEV CHANDRASEKHAR

Will the Minister of Agriculture be pleased to state?

(a)        Whether Government proposes to introduce Public-Private-Partnership mode in agriculture sector for creation of post-harvest infrastructure; and

(b)        if so, the details thereof?

 

ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION 

(SHRI K.V. THOMAS)

(a) & (b):         The present marketing system in the country lacks post harvesting marketing infrastructure and cold chain facility. Realizing the requirement of huge investment in the sector, the National Horticulture Mission (NHM) was launched in 2005-06 for holistic development of horticulture sector by adopting cluster basis of development with end to end approach. It provides for post harvest management including setting up of rural markets, whole sale markets as well as modern Terminal Market Complex (TMC).

            Under post harvest component including cold storage under NHM scheme, credit linked back ended subsidy and @ 40% of the project cost in general areas and 55% in case of hilly and schedule areas for individual entrepreneurs in available.

            The TMC is designed as the State – of –the art market in public private partnership mode to cater to bridging demand and supply of perishable horticulture produce while ensuring proper backward and forward linkages. The TMC project under NHM is proposed to be implemented through PPP route for construction, operation and maintenance of TMC on Hub (Main Market) and Spoke (Collection Centre) to bring in much needed private investment as well as corporate managerial skill to manage the TMC. The scheme is being implemented through subsidy route with a floor subsidy of 25% and a maximum of @ 40% of the project cost with a ceiling of Rs. 50 crore per TMC. The maximum project cost will be taken as Rs.150 crore for calculation of subsidy. The private enterprise would be selected based on a competitive bidding through a two stage bid process on the basis of global tenders. The private enterprise is required to provide equity up to 26% to the procedures associations. This would help in participation of producer/farmers in the management process, thus, motivating and incentivizing them to support it on long term basis. There is a penalty provision for delay in execution of project. The private enterprise will be free to levy user charges in lieu of services provided at TMC.

            One TMC project has been sanctioned at Patna with NHM assistance of Rs. 3300 lakh Another TMC has been sanctioned at Perundural, Tamil Nadu with an assistance of Rs.2899 lakh. Further, in-principle approval has been accorded to five TMC projects to be set up at Nasik, Thane, Sambalpur, Chennai and Madurai.