The proposed Indian Farmers Fertiliser Cooperative Ltd (Iffco) kisan SEZ project coming up at Nellore district in Andhra Pradesh has attracted investments to the tune of Rs 2,000 crore in the first phase. This is significant as the multi-product SEZ is the first-of-its-kind in the country in which farmers? cooperatives are participating as stakeholders having primary focus on food processing and agri-based industries.
The SEZ, coming up on around 2,700 acre with an approximate investment of Rs 5,000 crore, has caught the attention of some big investors. Some of them who have shown interest in the project include Mother Dairy?s Safal for vegetables and fruits processing, Swaraj Paul group?s Fresco for greenhouse and dairy, Ushar Agro for paddy processing and their products; Beejo Sheethal Seeds besides National Fisheries Development Board for ready-to-eat aqua foods; Marine Processing Export Development Authority (MPEDA) for aquaculture, apart from a research centre by the Acharya Ranga Agricultural University. An MoU with these companies is expected to be signed in the next three to four months and fresh letters of intent (LoI) would be issued by mid of next year.
Iffco managing director US Awasthi told FE that there are considerable investors who have shown interest in areas such as greenhouses, dairy production and processing, marine products processing, fruit and vegetable processing, processing of paddy and bio-mass-based power generation in this SEZ.
The project has so far received 20 LoIs from corporates for allotment of about 925 acre to set up dairy, vegetable and fruit processing industries, cold storages, ware houses and greenhouses. ?The company is finding ways and means to support the farmers. In the next five years, we want to make it non-fossil fuel-based SEZ using solar, wind and biomass energy,?? he said. Over 108 rural transformation centres (RTCs) would be set up in various mandals in the state which would be integrated with the SEZ involving cooperatives and small farmer groups.
On of the challenges in completion of the project is that there is a taxation issue after the FTA with Asian countries. However, there is no FTA concession for the products made out of SEZ. ?We are in talks with the government to extend the concession for SEZ as well. There is a serious consideration to it,?? he added. The fully completed SEZ is expected to be operational in the next three to four years.
Meanwhile, Iffco is looking at overseas expansion. According to Awasthi, the company is in talks with few virgin companies (not established players) for potash reserves in order to break the monopoly. Besides, it is also in talks with ammonium urea producers as part of overseas joint ventures.
