Food processing minister Harsimrat Kaur Badal on Monday stated that promoters of the now-cancelled Amethi Food Park wanted to earn a chunk of their revenue from selling power to the units rather setting up food processing and cold storage facilities.
“After going through revenue model of the food park, we found out that more than 62% of the expected revenue would come from selling subsidised electricity to other units in the food park at commercial rate and only about 18% of the revenue would be generated for setting up cold storage and food processing,” Badal said.
She said the NDA regime did not cancel the projects as it was the previous UPA government which refused to provide further extentions to the project in March, 2014 after enormous delays in execution. “We have decided to finally scrap the project in June, 2015,” Badal said.
For viability of the project, the promoters – Shaktiman Mega Food Park Private Ltd which wanted to set up the food processing hub at Jagdishpur, which is part of the Amethi constituency– had requested the petroleum ministry in 2012 to allot natural gas at administered prices for the captive power plant in the food park.
However, the petroleum ministry had communicated to the promoters that considering the acute shortage of domestic gas in the country and lowest priority accorded to captive power plant for allocation of any domestic gas, it would not be possible to allocate domestic gas for the proposed mega food park.
Rahul Gandhi had recently stated in the parliament that the Centre blocked the food park and termed it a case of ‘revenge politics’.