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Maharashtra invites companies for projects in agri-development

The Economic Times:  April 16, 2012

Pune: The Maharashtra government has invited corporates to propose integrated agricultural development (PPP-IAD) projects through public-private partnership. IDBI Capital has come forward to provide funding for the PPP-IAD projects.

The department of agriculture and marketing, headed by minister Radhakrishna Vikhe Patil, had invited corporates for an investors meet organised in Pune on Sunday to promote private investment in agriculture through the PPP mode.

"The government wants to invest more than Rs 2,000 crore of public money available under various government schemes in the agriculture sector, under the guidance of the private sector, for development of backward linkages in the projects they propose. The corporates will have complete flexibility to design the project provided that it covers all aspects from production to marketing," said Sudhir Kumar Goyal, principal secretary agriculture.

The government investment will be restricted to 50% of the overall per-farmer investment proposed, with a ceiling of $1,000 per farmer through the project cycle.

The government has designated the commissioner (agriculture) as the single-window system for providing the assistance. The state government has set up a state-level sanctioning committee chaired by the chief secretary to supervise this project.

The government expects that the approximate budget required to cover one million farmers during the next five years under PPP-IAD will be $1billion. This will be made available through convergence of various schemes.

The government has already appointed Deloitte as transaction advisory for two Integrated Value Chain (IVC) projects of the 15-20 proposed IVC projects. The project cost of the IVCs proposed for the Nashik region and the Aurangabad-Amravati regsion is Rs 76.7 crore and Rs 28.1 crore respectively. While the private players will have to invest 60% of the project cost, 40% money will be available as government grant. Land will be provided by the Maharashtra Agricultural Marketing Board (MSAMB). It has already acquired more than 16 ha land for the two IVCs.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.