Cover Story

Agro Parks - A Paradigm shift from Agriculture to Agro Business

The new governments both at the Centre and State are started focussing more on welfare of farmers by initiating a number of  promotional measures. The establishment of Food and Agro Technology Parks (FATPs) with the financial support from the Central Government is one of the initiatives taken by the Government of Karnataka.  The government  has decided to set up FATPs in six locations viz., Malur in Kolar district,  Bagalkote in Bagalkote district, Jewargi in Gulbarga district, Halaga in Belgaum district, Maddur in Mandya district and Hiriyur in Chitradurga district.  A lot of ground work has already been made in this connection including preparation of detailed

The MoUs have been signed between the identified JV Partners and the Government of Karnataka on July 30, 2004 at an interaction meeting with Mr. Subodh Kant Sahai, Hon’ble Union Minister of State for Agro Processing, organised by FKCCI in Bangalore.  Addressing the gathering after giving away the signed MoUs to the JV Partners, Mr. Subodh Kant Sahai exhorted the JV Partners and the State government to complete the implementation of Food Parks within the possible shortest period.  The minister underlined the importance of  Agro Food Processing sector and opined that the initiatives of the Sate government in setting up FATPs will definitely give added focus on welfare of farmers and development of sustainable rural Karnataka.  Responding to the request for sanction of additional FATPs in the State, Mr. Mr. Subodh Kant Sahai  suggested  to promote one FATP in each of the Parliamentary Constituencies and assured the eligible support from his Ministry.    


FATPs : Extent of Land and Estimated Project Cost

Malur            60 acres        Rs. 1725 lakh
Bagalkote   100 acres        Rs. 1859 lakh
Jewargi       105 acres        Rs. 1793 lakh
Halaga        100 acres        Rs. 2427 lakh
Maddur         60 acres        Rs. 1607 lakh
Hiriyur           50 acres        Rs. 1614 lakh

Hon'ble Union Minister being felicitated by Mr.  Adikeshavalu, Hon'ble MP., FKCCI President  is looking on.

The Government of Karnataka has set up a special purpose vehicle- Food Karnataka Limited (FKL) for implementation of proposed FATPs at six locations.  The FKL after following transparent process has finalised the JV Partners for setting up these FATPs.  The FATP at Malur will be jointly promoted by M/s. Bharat Bio-tech International Limited and the Bagalkote FATP will be set up jointly with M/s. Mysore Fruit Products Limited.  M/s. Rayalseema Concrete Sleepers Pvt. Ltd., has been identified as JV Partners for promotion of Jewargi  and  Halaga  FATPs. The Maddur FATP will be promoted by M/s. Shri Vani Sugars and Industries Ltd., and M/s. Harsha Seeds and Agro Products Pvt. Ltd., will  be the joint venture partner for Hiriyur FATP.

As per the scheme of Government of India each FATPs are eligible for a grant of Rs. 4 crore from the Government of India and a matching grant -in- aid from the Government of Karnataka.  All the JV Partners selected for implementation of FATPs have required expertise and experience for implementation of these parks and already drawn up activity plans for setting up these parks as per the schedule.  It is hoped that these parks, upon implementation will offer the required advantage both for farmers and industries.  The very idea of the government in encouraging these parks is to give a paradigm shift from agriculture to agro business and government is committed to take these measures forward with full dedication and support.  


project reports and identification of Joint Venture Partners to promote these parks.  

Mysore Fruit Products Ltd. Director Ms.D.A. Tejeshwari signing the MoU in the august presence of Hon'ble Union Minister. Mr. K. Jairaj, IAS, MD, KSIIDC & Chairman, FKL and Mr. Manandi Suresh, President, FKCCI are also seen.

The government of Karnataka has entrusted Karnataka State Industrial Investment & Development Corporation (KSIIDC) with the establishment of Food Karnataka Limited (FKL), a Special Purpose Vehicle vested with the responsibility of facilitating and developing six agro FATPs in Karnataka.  

Food Karnataka Ltd., the SPV for FATPs

"We are going in full speed and confident that the FATPs will take off by September 2005".
-  K. Jairaj
MD, KSIIDC & Chairman, FKL

FKL was  incorporated on 29th April 2003 as a public limited company with KSIIDC, MSIL and KIADB as its share holders. The main objectives of FKL include promotion of private sector investment in the establishment of FATPs, to set up agro export zones, to formulate exclusive policies for the agro food processing industries, to position Karnataka as the ideal location for investors in India’s Food Industry, to promote world class infrastructure for Karnataka Agri Business and to build ‘grown and processed’ in Karnataka as an internationally recognised symbol of quality. According to FKL construction work in respect of Malur, Bagalkote, Jewargi and Hiriyur parks is expected to commence from Aug. 2004 and in respect of Maddur & Halaga from Nov. / Dec. 2004. The core infrastructure in first four parks is expected to be ready by 2005.