EXPRESSION OF INTEREST FOR SETTING UP OF MEGA FOOD PARKS AT BAHERI, KHIMSEPUR & KOSI KOTWAN EXTENSION-II

EXPRESSION OF INTEREST FOR SETTING UP OF MEGA FOOD PARKS AT BAHERI, KHIMSEPUR & KOSI KOTWAN EXTENSION-II

1 Contents A. BACKGROUND...2 B. PROJECT OBJECTIVE...2 C. PROJECT CONCEPT...3 D. PROJECT LOCATION...5 1. I.A Baheri, Distt Bareilly...5 2. I.A Khimsepur, Distt Farrukhabad...6 3. I.A Kosi Kotwan Extension -II, Distt Mathura...6 E. ROLE OF UPSIDC...7 F. ROLE OF THE DEVELOPER...7 G. TIME SCHEDULE...9 H. INSTRUCTIONS FOR SUBMISSION...9

A. BACKGROUND Uttar Pradesh State Industrial Development Corporation Ltd(UPSIDC) is a public sector undertaking of the Government of Uttar Pradesh spearheading the development of industrial infrastructure in the State since the last 56 years a pioneer in development of industrial areas, we have delivered iconic industrial Areas, townships & Industrial Parks on more than 42000 acres of land, which houses more than 26,000 units providing direct employment to lacs of people. Providing contemporary infrastructure facilities and services to our entrepreneurs as our objective, we strive to build on our strength as a pillar of the pulsating industrial ecosystem of Uttar Pradesh that contributes toward the economic, development of the State in particular & the Country in general. To cater to the modern demands of High-tech quality infrastructure, the Corporation has ventured into many new areas by developing High-tech integrated industrial townships like Trans Ganga and Saraswati High-tech cities and also sector specific industrial areas like Plastic Park, Agro Parks, Apparel Park, Leather Park, among others. Food processing industry in India has gained prominence in recent years. Availability of raw materials, changing lifestyles and appropriate fiscal policies have given a considerable thrust to industry s growth. This sector serves as a vital link between agriculture and industrial segments of the economy. Strengthening this link is of critical importance to reduce wastage of agricultural raw materials, improve the value of agricultural produce by increasing shelf-life, fortify the nutritive capacity of food products and ensure remunerative prices to farmers as well as affordable prices to consumers. The Ministry of Food Processing Industries has launched Infrastructure Development Scheme of Mega Food Park to provide state of the art infrastructure for food processing in the country and to provide a mechanism for producers, processors and retailers to work together to build the supply chain for enhanced value additions. UPSIDC intends to allot land to entrepreneurs and /or consortiums desirably having experience in food processing industry and/or development and management of the Industrial Parks for developing Mega Food Park at industrial areas Khimsepur, district Farrukhabad, Baheri, district Bareilly and Kosi kotwan extention II, district Mathura. The Developer/Implementing Agency/SPV (referred as developer here onwards) will undertake preparation of Detailed Project Report (DPR), financial plan,development plan & implementation plan.the developer shall play a lead role in developing the project, bear development cost of the park and take up marketing & promotion of the park to attract investments from units in the Food Processing segment. UPSIDC will consider to allot land for implementation of the above mentioned Mega Food Park Projects on the basis of the EOIs received. B. PROJECT OBJECTIVE 1. To give an impetus to entrepreneurs/investors who are interested to setup or develop food Park for promoting food processing industries in Uttar Pradesh. 2. To provide ready to use land parcels with basic infrastructure for entrepreneurs/investors interested to set up units within the Park. 2

3. The expected outcome is increased realization for farmers, creation of high quality processing infrastructure, reduction in wastage, capacity building of producers and processors and creation of an efficient supply chain along with significant direct and indirect employment generation. C. PROJECT CONCEPT 1. The proposed Park is to be developed as a state-of-the-art industrial Park for entrepreneurs in related businesses to set up new food processing units within the park. 2. The Mega food park will provide common facilities such as water, electricity and effluent treatment plant 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 inclusive 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. 3. The spirit of the Mega Food Parks Scheme is to facilitate setting up of only food processing industries. Accordingly, only food processing industries that make food products fit for human/animal consumption may be permitted to be set up in the Mega Food Parks. Packaging facilities of food products as ancillary to the food processing industries may also be allotted land in the Mega Food Parks. 4. The Park would be so developed so as to fulfil comprehensively the functional requirements in terms of common facilities, physical and social infrastructure amidst a green environment. Suggested components for the Park will include :- i. Basic Enabling Infrastructure facilities :- Developed land with boundary wall Approach Roads & Internal roads Drainage and Sewer Electrical distribution and Sub Station Street Lighting including High Masts Solid Waste Management Weigh-Bridge Telecommunication Lines Water supply Captive power plant, as standby power supply Effluent Treatment Plant & Sewage Treatment Plant Gate and Gate Cabin 3 ii. Noncore facilities:- Administrative Buildings Training Centres Trade & display center Creche & Canteen

4 iii. iv. Worker s Hostel Labour rest & Recreational facilities Bank/ Post Office/ Insurance office/ Police Station Fire Station & garage for Fire Brigade Central Processing Centre (CPC):- Common facilities like testing laboratory, cleaning facilities Dry ware house for raw materials Specialized storage facilities Hi-tech Cold storage facilities Cold chain infrastructure Food incubation cum development centres Packing Unit Ripening Chambers Cold Storage Primary Processing Centre (PPC) Dry Ware House Specialized cold stores Grading, sorting & Packing Facility etc. Mobile Collection Vans etc. & packing v. Specially Designed Factory sheds for MSME Units Ready to move in Sheds for MSME Units depending on the demand in the area. 5. The developer can avail financial assistance upto Rs.50 Crore per park from Ministry of Food Processing & Industries (MoFPI), Govt. Of India to set up modern infrastructure facilities for Food Processing at Mega Food Parks. For further reference please refer revised guidelines for Mega Food Park Scheme effective from 21.07.2016. (http://mofpi.nic.in/sites/default/files/revised_guideline_mfps_w.e.f._21.07.201 6_1.pdf) 6. The developer is free to develop the mega food park even without any financial assistance from MOFPI,Govt. Of India.

5 D. PROJECT LOCATION 1. I.A Baheri, Distt Bareilly The site is located along the banks of Kichha river and is about 8 kms from the Baheri tehsil Headquarters. The site is in close proximity to State Highway 37 & National Highway 87. Nearest railway station is Baheri railway station which is about 8 kms from the site. Key Produce: Paddy, Sugarcane

6 2. I.A Khimsepur, Distt Farrukhabad The site is located in Khimsepur, Farrukhabad district. The site is in close proximity to State Highway 29.Nearest major railway station is Farrukhabad located at a distance of 25kms. Key Produce: Maize,Potato 3. I.A Kosi Kotwan Extension-II, Distt Mathura The site is located near Kosi Kalan, Mathura district adjacent to Agra-Delhi National Highway-2. Nearest railway station is Kosi Kalan Railway Station which is at a distance of 3 kms & Mathura Junction Railway Station is at a distance of 48 km.

7 Key produce:potato,barley, Maize E. ROLE OF UPSIDC 1. UPSIDC is desirous of developing the project through induction of a developer selected through a transparent process. Overall efficiency, exposure in handling projects of similar nature and financial strength of the developer are the key ingredients that would be desirable for the proposed project. 2. UPSIDC will provide developed land having area of 50 acres to 100 acres with external approach roads and external facilities of electricity & drainage. 3. UPSIDC will allot the land on lease basis for development of Mega Food Park. For implementation of the project the developer may seek grant under Mega Food park scheme of MOFPI for implementation. The revenue may be generated by sub leasing the plots and offering the common services to the food processing units. 4. If developer wants lesser development in the land as proposed in the layout plan on the basis of which costing of land has been done proportionate benefit aganist development cost saved may be given. The Mega Food Park as a whole may be considered as anchor unit and advantages/facilities to be given to such anchor unit would be available to the developer. 5. UPSIDC through the EOI s and pre -proposal meeting with the developers on 04/01/2018 at 11:00 AM expects the interested developer to discuss on the various modes of development, issues related to the implementation of the project and to know similar project experiences from the developer attending the meeting etc. UPSIDC also intends to know the assistance required by the developers for establishing the Food park. The outcome of the meeting shall help UPSIDC in finalizing the most suitable mode of implementation of the project.the land allotment to the developer will be on the basis of existing UPSIDC policies, terms & conditions. This meeting will also help the developer to discuss and understand requirement and to preapre response to the EOI. F. ROLE OF THE DEVELOPER 1. The developer may form a SPV which will take responsibility of execution, ownership and management of the Mega Food Park. It will also focus on processing of a wide range of perishable items. The Special Purpose Vehicle (SPV) should be registered under the Companies Act. 2. To formulate the Detailed Project Report (DPR) and execute the project in a transparent, efficient and timely manner. 3. For appointment of PMC for ensuring smooth implementation of projects at ground level, Ministry has drawn up a panel of Project Management Consultants (PMC) with experience in preparation of DPRs for large projects and in project implementation. Any of these Ministry s empanelled agencies may be engaged by the developer for preparation of DPRs and for assistance in implementation and the cost of which would be considered as one of the eligible components of the project by MoFPI. 4. To ensure external infrastructure linkages for the projects.

5. To obtain key statutory approvals/clearances including environmental clearances, which are prerequisite for commencement and operation of the Project. 6. To achieve financial closure and ensure completion of project. 7. To own and maintain the common infrastructure. 8. To receive the financial assistance for the project and its utilization in a transparent and judicious manner and maintain proper account. 9. Development & Maintenance of Processing Centers Farm Proximate Collection Centers and Primary Processing Centers(PPC) shall have components like cleaning, grading, sorting and packing facilities (including equipments), dry warehouses, specialized cold stores including precooling chambers, ripening chambers (including equipments), reefer vans, mobile pre-coolers, mobile collection vans etc. Central Processing Centers(CPC): Infrastructure for common facilities like testing laboratory (including equipments), cleaning, grading, sorting and packing facilities (including equipments), dry warehouses, specialized storage facilities including Controlled Atmosphere Chambers, Pressure Ventilators, variable humidity stores, pre-cooling chambers, ripening chambers etc. (including equipments), cold chain infrastructure including reefer vans, packaging unit, irradiation facilities, steam sterilization units, steam generating units, Food incubation cum development centers etc. The above mentioned facilities are only illustrative and exact nature of the facilities may vary from project to project based on specific requirements as per the processing facilities. 10. Establishing and operating Anchor Unit 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 cr. Setting up of Alcohalic bevarage as anchor unit is not allowed. The Anchor Investor will have at least 51% stake in such processing unit(s). The Food Processing unit(s) to be set up by the Anchor Investor in the Mega Food Park will be completed and commissioned along with the commissioning of the Mega Food Park project by the SPV. 11. Development & Maintenance of Factory buildings Based on the demand from Micro and Small Enterprises (MSEs) standard factory sheds may be constructed. The facility can have a maximum of 10 per cent of the area of CPC as part of plug and play facilities for MSEs. 12. Development & Maintenance of Enabling Basic Infrastructure It will include roads, drainage, water supply, electricity supply including captive power plant, effluent treatment plant, telecommunications lines, parking bay including traffic management system, weighbridges etc at the PPC & CPC level. Developer has to demonstrate a firm plan to ensure good quality assured power supply to prospective units in the Park. 13. Development & Maintenance of Non-Core Infrastructure 8

It will consist of support infrastructure such as administrative buildings, training center (including equipments), trade center/display center, crèche, canteen, worker s hostel, offices of service providers, labour rest and recreation facilities, marketing support system, etc. However, the cost of non-core infrastructure facilities not exceeding 10% of the eligible project cost, would be eligible for grant purpose. 14. Marketing and Subleasing of Plots in the Food Parks The developer will be responsible to Market and sublease the plot in the Food park as per UPSIDC policies and guidelines and will be free to collect the sublease amount as per UPSIDC rules. 15. Collection of Operation and Maintenance Charges The developer will collect the Operation & Maintenance charges from the units established in the Food Park. 16. The common facilities in the food park cannot be sold or leased out. These can only be offered on rental basis. G. TIME SCHEDULE The Developer shall be given time of five years for implementation of Mega Food Park Project. The alloted land under Mega Food Park scheme shall be considered as utilized if either of the following two conditions are fulfilled at the end of five years from the date of land alloted to the developer by UPSIDC 1. The sum of land alloted by Developer to food processing units and the land reserved for Central Processing Centre is equal to or more than 80% of the land alloted to Developer by UPSIDC. 2. The units start production and common facilities start operation on total 50% of the land alloted by UPSIDC to the Developer. H. INSTRUCTIONS FOR SUBMISSION 1. UPSIDC invites Expression of Interest (EOI) desirably from potent Food processing based Companies/developers to showcase their interest towards participation in the Project, to develop and set up mega food park at proposed locations. The separate proposals are required to be submitted, if developer is interested in more than one locations. Proposal submitted should have land requirement between 50 acres to 100 acres. 2. For the purpose of abundant clarity it is hereby clarified that any and all response(s) to the advertisement inviting this EoI does not make it obligatory for UPSIDC to allot land to the Applicants expressing their interest. Further, UPSIDC reserves the right to reject all or any of the submissions hereunder without assigning any reasons whatsoever or undertake any other process for allotment of land for the project independent & exclusive of this EOI. The said condition shall be read & construed as the essence of this EOI. 3. Profiles of the developer(ia) or the key shareholders of the Proposed SPV i. Names and brief profiles of the proposed promoters/shareholders of SPV ii. iii. along with their contact details. Indicate the nature and location of existing operations of the Promoters in the area if any. Audited balance sheets for last 3 years or Chartered Accountant (CA) Certificates that would establish the net worth and Turnover of each of the 9

promoters. In case of companies, CA certificates need to be certified by their statutory auditors. iv. A brief note as to why the promoters are keen to undertake the Mega Food Park project, their vision etc. v. In case the SPV is already registered, the details of the SPV including shareholding pattern. vi. Past experience in Food Processing and development of industrial park. vii. Any other relevant information that would establish the credentials and suitability of the promoters in the context of the Scheme. 10 4. Project Financials and Business Plan i. Proposed sources of finance to fund the project: equity, debt etc ii. Tie-ups with Financial Institutions/Banks, if any, for funding of the Project 5. Documents in support of networth: i. The net-worth in case of Companies would be calculated based on the definition of net-worth in the Companies Act 2013. However, the revaluation 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. ii. 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 should be duly certified by the competent State Revenue Authority. iii. 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. iv. 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. v. 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. vi. In the case of proposed SPV shareholders, if there is cross holding of the net-worth amongst the Members (e.g. both a company as well as the shareholders of 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. vii. UPSIDC will invite separate applications for allotment of Land from only those developers who have participated in this EOI. 6. The applicant / promoter has to submit an Undertaking affirming: i. That the SPV / Group company (as defined in the Company Law) as well as the applicant company itself has / has not obtained any financial

assistance for a food processing project in the past from MoFPI. If yes, then complete details are required to be furnished. ii. That the SPV / applicant company has not obtained/applied for or will not obtain any grant/subsidy from any Ministry/Department of Central Govt/GOI organization/agencies and State Govt for the same activity / components. If yes, then complete details are required to be furnished. 7. Submission of EOI Proposals: All the EOI proposals must be submitted on or before 5:00 PM, 05/02/2018 in sealed envelop addressed to "The Managing Director, UPSIDC Ltd., A 1/4, LAKHANPUR, KANPUR -208024, UTTAR PRADESH. The envelop should clearly mention on top EOI Proposal for Food Park. 11