Based on feedback received from industry, the ministry of Food Processing Industries revised the food park scheme which was taken up under the 10th plan. The revised scheme has been named the Mega Food Park Scheme. The Scheme envisages setting up of 10 Mega Food Parks in high production areas across the country and provides for a grant of up to Rupees Fifty Crores for each Food Park to be implemented by a consortium of companies. Accordingly bids were invited from consortiums of business houses for setting up the Mega Food Park in October 2008.

The scheme was launched to help achieve the Vision 2015 of the Ministry of Food Processing Industries, which aims at increasing the processing of perishables from the current 6% to 20%, value addition from the current 20% to 35% and at increasing India’s share in global food trade from the current 1.5% to 3%.
The primary objective of the scheme is to provide adequate infrastructure for food processing along the value chain from the farm to the Market. It includes creation of infrastructure near the farms, transportation, logistics and centralized processing centres. The main feature of the scheme is a cluster based approach.
The scheme aims at facilitating the establishment of a strong food processing industry backed by an efficient supply chain, which will include collection centres, primary processing centres and clod chain infrastructure. The food processing units would be located at a central processing centre.

It is expected that each mega food park would have about 30 – 35 food processing units with collective investment of about 250 crores that would eventually lead to a annual turnover of 400 – 500 crores and generate employment (Direct and Indirect) for about 30000 people.
The scheme provides for a grant of 50% (75% for the NE region) of the capital cost excluding land cost, subject to a ceiling of Rupees Fifty Crores.’