Rs 300cr Food processing unit in Punjab

Spain-based food processing company Congelados De Navarra will invest Rs 300 crore to set up a food processing unit at Ludhiana in Punjab.

Key Facts :

• The spanish company signed an MoU with Punjab Bureau of Industrial Promotion (PBIP) for the project, which has been facilitated by IFFCO (Indian Farmers Fertilizer Cooperative) under the Invest Punjab scheme.
• A delegation comprising the company's Director General Berito Jimmez and Consultant Inigo Soto, along with IFFCO Chairman BS Nakai and MD US Awasthi, met the chief minister to finalise land for the project.
• The spanish company, along with IFFCO, had earlier shortlisted two land parcels for the project.
• The foundation stone for the project is expected to be laid by the end of this year and production will commence 18 months from the start of the project.
• The unit will focus on frozen potatoes, peas and cauliflowers. Extensive R&D will also be undertaken at the unit by the company, which will perhaps make it the first company to invest in research in this field.
• The pre-feasibility study for the project by Congelados De Navarra – a $220 million company that has pioneered the individually quick frozen (IQF) technology, has already been completed. The company is into processing of vegetables, fruits, herbs and ready-made dishes.
• The CM directed PBIP to facilitate in processing the Change of Land Use (CLU) expeditiously to enable the project to start at the earliest.
• PBIP shall also facilitate in providing water linkage speedily. Power is already available in the area and the necessary supply will be laid by PSPCL at the investor’s own cost.

Analysis :

• Agro based industries contribute nearly 20 per cent to the manufacturing output and about 14 per cent to the employment in the state.
• This project will generate direct employment for 400 and indirect for 5000 people in the state.
• It is positive step towards economic growth of Agro and Food processing Sector and will explore the future prospects of FDI inflows.
• The Punjab Food Processing Industry will get latest Quick Frozen Technology from Spanish firm, helpful in long retention of perishable goods.
• In order to speed up the investment the state has lowered the threshold limit for investment from Rs.100 crore to 25 crore for mega projects.
• Punjab Agro Industries Corporation has been encouraging private and foreign investment in the agro processing sector by identifying technically feasible and economically viable projects and inviting financial collaborations for implementation in the joint sector.

Invest Punjab :

To attract foreign investment the state government of Punjab has announced several attractive policies to lure new investors in the state. These policies are basically aimed to facilitate complete economic development of the state by providing incentives and attractive schemes to the investors.The state government has announced the Industrial policy of Punjab with an aim to attract investment and put industrial development of the state on fast track. The main objectives of the policy are to :

• Create a conducive environment for investors to invest by providing world-class infrastructure and reduced regulations.
• Make Punjab an ideal destination for attracting investment from foreign countries by creating a well-framed institutional framework and competitive environment for businesses.
• Make the state of Punjab globally competitive in the new privatized and liberalized economy and ever-changing business environment.
• Transform the Punjab state to a knowledge society by providing IT education.
• Punjab Bureau of Investment Promotion (PIBP) :

Punjab Bureau of Investment Promotion (Bureau) has been set up by the Government of Punjab as the single point of contact for regulatory clearances and fiscal incentives approvals to facilitate investors who are looking to set up a business in Punjab. As the nodal agency, Bureau has been entrusted the responsibility to ensure a smooth transition of the project from the proposal stage up to the implementation stage.

By: Harman Sandhu