Establishment of

Horticulture Based
Multiproduct
Processing Unit with
Primary Processing
Centre at Haridwar
and U.S. Nagar

Department of Horticulture
and Food Processing
Government of Uttarakhand
Contents

Advantage India

Uttarakhand – Key Credentials

Uttarakhand – Competitive Advantage

Project Information

Project Financials

Infrastructure Availability

Policies, Schemes & Incentives

Key Contacts

Page 2 08 September
2020
Advantage India (1/2)

INDIAN HORTICULTURE SECTOR

► Food processing sector, valued at USD 322 billion in 2016*

► Food processing considered as one of the sunrise sectors in India*
► India amongst the top 10 countries in terms of land area under organic agriculture*
► Globally, India ranks 2nd, next only to China, in total food production*
► India produced around 1.35 million MT of certified organic products (2015-16)*

HIGHLIGHTS OF HORTICULTURE SECTOR

Ranks 1st in Ranks 2nd Country

production in produced
Expected to
Expected of Milk, production around 1.35
grow to
CAGR of Bananas, of Green million MT of
USD 543
14.6%* Mango, peas, certified
billion by
Guava, Potato, Tea, organic
2020*
Papaya, Tomato, products
etc* etc* (2015-16)*

KEY GOVERNMENT INITIATIVES

60 282
Agri-Export Zones* Cold Chain Projects*

34 41
Million MT of Cold Storage Capacity* Mega Food Park*

Page 3 08 September
* http://foodprocessingindia.co.in/
2020
Advantage India (2/2)

EVOLUTION OF THE HORTICULTURE SECTOR

► India's exports of processed food was INR 27,257.69 Crores in

2017-18*
Robust Demand
► Around 1.77 million persons engaged in food processing and
aggregate output is of around USD 144.6 billion**

► 100% FDI is permitted, under the automatic route for Floriculture,

horticulture, apiculture and cultivation of vegetables and
mushrooms under controlled conditions
► The major food categories and their share in the food processing
Attractive sector are as follows:
Opportunities
• Dry food grocery: 34.7%
• Milk & dairy products: 16%
• Fresh produce: 15.6%
• Perishables: 8%
• Spices: 6%
• Others: 19.7%**

► Uttarakhand is blessed with a variety of soils and agro-climatic

Diverse Attractions conditions, ranging from Sub-Tropical to Alpine, which is a mega
biodiversity hotspot

► Up to 100% FDI is now permitted for companies looking to

Investment
undertake Single Brand Retail Trading (SBRT) in India
Opportunities
► FDI up to 51% is permitted under the government approval route
for Multi Brand Retail Trading (MBRT)
► FDI upto 100% is permitted for wholesale cash and carry trading,
under the automatic route
► FDI in e-commerce is only permitted for a marketplace model of e-
commerce i.e a market-place model providing an IT platform on a
digital/ electronic platform to act as a facilitator between buyers
and sellers

Page 4 08 September *http://apeda.gov.in/apedawebsite/six_head_product/PFV_OPF.htm

2020
**http:/www.investindia.gov.in/sector/food-processing
Uttarakhand –
Key Credentials (1/3)
UTTARAKHAND STATE OVERVIEW
The State of Uttarakhand was formed on 9th November 2000 as the 27th State of India,
when it was carved out of northern Uttar Pradesh. Located at the foothills of the Himalayan
mountain ranges, it is largely a hilly State, having international boundaries with China (Tibet)
in the north and Nepal in the east. The state is close to the National Capital Region and has
excellent connectivity with its neighbouring states.

Uttarakhand being a Himalayan state enjoys a proven advantage and monopoly over the
availability of some valuable Medicinal & Aromatic Plants in the State. Some of the key
factors which supplement cultivation of these plants in the State include:

➢ The state also has a unique advantage of producing offseason vegetables in hilly areas
with late production of litchi in Dehradun and Champawat districts (towards the end of
season)

➢ A total of 148 major food processing units (which include all the segments of food) have
been established in the State out of which 102 units are Horticulture based

HORTICULTURE SECTOR IN UTTARAKHAND

➢ Uttarakhand has become a leading fruit cultivator in India

➢ Ranked No. 1 in production of Peaches in India

➢ Ranked No. 1 in production of Plums in India

➢ Ranked No. 2 in production of Walnuts in India

➢ Ranked No. 2 in production of Pears in India

➢ Ranked No. 3 in Apple Cultivation in India

Page 5 08 September *http://foodprocessingindia.co.in/state-

2020 profile/uttarakhand/?id=6&stateid=756&name=UTTA
RAKHAND
Uttarakhand –
Key Credentials (2/3)
PROMINENT RESEARCH INSTITUTIONS OF STATE

G.B. Pant University of Agriculture and Technology, Pant Nagar, U S Nagar

Uttarakhand University of Horticulture & Forestry, Bharsar, Pauri

Herbal Research Development Institute, Gopeshwar, Chamoli

Centre for Aromatic Plants, Selaquin, Dehradun

Forest Research Institute, Dehradun

Central Institute for Temperate Horticulture, Mukteshwar, Nainital

Vivekanada Parvatiya Krishi Anusandhan Sansthan, Almora

Page 6 08 September
2020
Uttarakhand –
Key Credentials (3/3)
UTTARAKHAND SNAPSHOT

GSDP growth rate of Annual turnover of Horticulture Agriculture exports grew at CAGR of
CAGR of 10.34% crops in State (approx. Rs. 2300 16.45% pa over FY 2010-18 to reach
(2018-19)*** crore) USD 38.21 bn***

EXISTING INFRASTRUCTURE

Page 7 08 September ****Uttarakhand at a glance 2016, DES, GoUK

2020 *http://indiafoodprocessingmap.nic.in/
Uttarakhand –
Competitive Advantage
ADVANTAGE: UTTARAKHAND

Blessed with variety of Close proximity to the

Variety of soils Favorable
soils and agro-climatic national capital of Delhi.
and agro-climatic location and
conditions (Sub-Tropical One of the leading Fruit
conditions abundant
to Alpine); biodiversity cultivating state of India
resources
hotspot for Horticulture
and allied products

The State has a stable The average literacy level in

Adequate
political environment with Stable Political State is high (79.63%).
labour pool and
successive governments Environment Research A large pool of talented
that have been committed Institutes human resources is available
towards creating a State has research oriented
progressive business institutes, such as, Forest
environment. Research Institute, HRDI

Incentives to farmers on Evolving The state’s GSDP increased

Policy and Key
cost of cultivation & Incentives industrialisation at CAGR of 10.34% (2018-
facilitating 19)
processing of Horticulture
growth
and Floriculture Crops

Farmers in Uttarakhand Presence of renowned

Abundant supply Universities universities like G.B. Pant
get more electricity as dedicated to
compared to farmers in of electricity at University of Agriculture and
reasonable cost Agriculture and Technology and Uttarakhand
other states at subsidized Horticulture
rates University of Horticulture &
Forestry.

KEY PLAYERS

Page 8 08 September *IBEF Report – May 2018

2020
Project Information

PROJECT AT A GLANCE
Project Name Establishment of Horticulture Based Multiproduct
Processing Unit with Primary Processing Centre (PPC)
➢ Udham Singh Nagar
▪ Related PPCs at Chaukutia (Almora), Gangolihat
(Pithoragarh), Ramgarh (Nainital), Sukhidhang
Location (Champawat)
➢ Haridwar
▪ Related PPCs at Naugaon (Uttarkashi), Agrakhal
(Tehri), Kaleshwar (Chamoli), Pabau (Pauri)
➢ One Acre (for each multi-product unit)
Area
➢ 500 sq meter for each proposed PPC
Production Capacity Approximately 250 MT per annum
Focus Sector Horticulture
Project Timelines 1 Years Establishment Period

Significance of PPCs

➢ To cater to the raw material availability for the proposed horticulture based Multi-
product processing unit, PPCs are essential.

➢ PPCs will help aggregate the raw materials like fruits and vegetable for primary
processing which will reduce the volume of raw material to be transported

➢ The PPCs will facilitate the availability of various kinds of raw materials through out
the year and will help reduce the cost of logistics & warehousing

➢ Establishment of PPCs will enhance the confidence and cooperation of farmers

(including Farmer Interest Group, Farmer Cooperatives/ Federations, etc) on the
manufacturing unit due to local presence of PPCs

➢ PPCs will help reduce wastage and perishability of raw material through primary
processing and increase shelf life as well resulting in significant savings

Page 9 08 September
2020
Project Information

PROJECT DESCRIPTION

Multi-products: Jams, Jelly, Marmaled, Squashes, Syrup, Pickles, Fruit

Juices, Tomato Ketchup / sauces and RTSB.
Volume (Production Capacity): 250 Metric Tonnes per annum

➢ Fruit processing unit based on the raw material strength of Uttarakhand, such
as Apples, Pear, Peach, Plum, Citrus species, etc. focussing on Jams/Jelly
/Marmaled /Squashes /Syrup /Pickle /Fruit Juices /Ready To Serve Bevereages
(RTSB), etc as output

➢ Processing is one of the most effective solutions to reduce wastage. In India

processing of fruits and vegetables is extremely low and is below 2%. Value
addition to the raw produce is only 7% as compared to China (23%), Phillipines
(45%) and United Kingdom (88%)

➢ The processing industry holds tremendous potential not only for contributing to
the GDP but also for generating employment in rural areas and business
opportunities for entrepreneurs

➢ Establishment of one Main Processing Unit in each division of the State, i.e
Garhwal division and Kumaon division. To support effective and efficient
running of the Main Processing Unit, it is proposed to establish four PPCs at
strategic locations in each of two Divisions of the State

➢ The establishment of the PPCs would ensure continuous supply of various

kinds of raw materials through out the year to the main processing unit
ensuring financial viability
Page 10 08 September
2020
Project Information

PROPOSED PROJECT SITES

Main Processing Unit

Primary Processing Unit for

U S Nagar

Primary Processing Unit for

Haridwar

RAW MATERIAL AVAILABILITY

➢ The envisaged production capacity is 250 MT per annum and raw material for the
same could be procured locally easily through establishment of PPCs at four
strategic locations within each division (Garhwal and Kumaon) of the State

➢ To prepare finished processed products like Jams, Jelly, Marmaled, Squashes,

Syrup, Pickle, Fruit Juices and RTSB, the “C” and “D” grade of fruits and
vegetable are used. This helps in reducing the wastage and ensuring the financial
viability to the growers and entrepreneurs

➢ Out of total production of fruits and vegetables, “A” and “B” grade fetch most
remunerative prices in the market, whereas, “C” and “D” grade fruits and
vegetables are not able to attract such remunerative prices and are mostly used
for processing. About 35 – 40 per cent of “C” and “D” grade produce is generally
supposed to be available for processing. Thus, on an average 35 per cent
produce would be available as surplus for the proposed unit

➢ Should there be need be additional raw material the same can be procured from
adjoining districts of the State

The table given on the next page provides the existing production of the fruits and
vegetable and available surplus (@35%). The data presented in the table has been
taken from the Production data (year 2018-19) of the Department of Horticulture and
Food Processing, Uttarakhand.

Page 11 08 September
2020
Project Information

Fruits/Vegetables Kumaon Division (in MT) Garhwal Division (in MT)

Production Surplus Production Surplus

Apple 26010 9104 31744 11110

Pear 61126 21394 16128 5645

Peach 52390 18337 6098 2134

Plum 29283 10249 6914 2420

Apricot 22407 7842 5620 1967

Citrus species* 66476 53181 24447 19558

Mango 100535 35187 53497 18724

Aonla* 1154 923 1280 1024

Guava 14205 4972 5895 2063

Other fruits 17306 6057 77827 27239

Raddish 36137 12648 24017 8406

Cauliflower 12021 4207 28851 10098

Tomato 64092 22432 40361 14127

Other vegetables 37175 13011 64300 22505

Chillies 4258 1490 5216 1826

Garlic 5550 1943 5496 1924

Ginger 18556 6495 29912 10469

Total 568681 229472 427603 161239

MARKET
➢ India is one of the biggest emerging markets, with over 1380 million populations and 300 million
strong middle class
➢ Demand for processed/convenience food is constantly on rise due to rapid urbanization,
increased literacy and rising per capital income
➢ The processed fruits and vegetables industry sector is growing not just in India but globally
Although, the volume of processed fruits and vegetables consumed in India is very low, but the
demand is growing during due to increased awareness about the nutritional values
➢ Considering its nutritional value, there is good demand for fruit products in hotels, restaurants,
bus stands, defense canteens, picnic spots, railway canteens etc.
➢ Substantial demand for processed food locally (within State), in neighboring states like U.P,
Haryana, Punjab, and in Delhi NCR as well

Page 12 08 September
2020
Project Financials

INDICATIVE PROJECT COST

Type of Cost Amount (in Rs Lakh)
Udham Singh
Haridwar
Nagar
Cost of Land and land development (Main processing unit) 250* 120**

Building and Civil Works 100 100

Plant and Machinery 200 200

Misc. Fixed Assets 20 20

Preliminary and pre-operatives 15 15

Provisional and contingencies (Variable Cost) 10 per annum 10 per annum

Margin money for working capital (Variable Cost) 30 per annum 30 per annum
Cost of land, land development, building and plant &
machinery for 4 PPCs in each main processing unit @ 50 200 200
lakh per PPC
Total cost of the project 825 695

* Indicative rates have been taken for IIE Haridwar (Source: SIIDCUL website)
** The rates have been taken for IIE U.S. Nagar (Source: SIIDCUL website)

Page 13 08 September
2020
Project Financials

INDICATIVE MANPOWER REQUIREMENT FOR EACH UNIT WITH 4 PPC

Category of man power Number of personnel Number of personnel

(Main Processing Unit) (for four Primary
Processing Unit)
Production Manager / Food technologist 1 -

Production Supervisor 2 -

Laboratory Assistant 1 4

Boiler operator 2 4

Machine operator 2 4

Raw material in-charge 1

4
Finished goods in-charge 1

Safety & Security Department (on contract) 7* 4*

Administrative and Human Resource 5 4

Department (Finance Accounting & Control
Department)
Labour 7 12

Grand Total 22 32

Grand Total (Main + PPC) 54

The above figures are for envisaged employees, additional employees / labours may be hired as
per requirements in main processing unit and four primary processing unit
* Safety & Security Department staff depute as contract basis.

Page 14 08 September
2020
Infrastructure Availability

Connectivity of Haridwar with the major towns

► Haridwar is well connected with the other districts of the state like Dehradun,
Nainital, UdhamSingh Nagar, Rishikesh
► Haridwar is well connected with major cities of the country like Delhi, Mumbai,
Rail Kolkatta, Chennai, Hyderabad, Bangalore
► Rishikesh – Karnprayag railway line is also under construction which will ensure
cheapest, fast, reliable connectivity between PPCs and Main Processing unit

► Nearest airport is located at a distance of 38 kms at Dehradun

Air ► Flights available from Dehradun to Delhi, Mumbai, Lucknow, Bangaluru etc
► Presence of air strips at Gochar (Chamoli), Naini Saini (Pithoragarh) and
Chinyalisaur (Uttarkashi). Would be connected under UDAN scheme soon

► All PPCs are connected with Main Processing Unit (Haridwar) through National
and State Highways
Road ► In Uttarakhand construction of all weather roads is ongoing which will ensure
very good connectivity in future with Main processing unit
► Project sites are likely to come under the influence zone of Amritsar Kolkatta
industrial corridor

Connectivity of Udham Singh Nagar with the major towns

► Rudrapur City railway station is main railway station of Udham Singh Nagar
district. It is connected with cities like Dehradun, Moradabad, Lucknow, Jammu
Rail Tawi, Delhi, Howrah, etc
► Main Processing unit and PPCs are well connected via road Rudrapur and other
prominent railway stations of the district
► The nearest airport for main processing unit and PPCs is Pantnagar Airport.
Flights are connected to Delhi and Dehradun and in future will be connected
with major cities of the country
Air
► Presence of air strips at Gochar (Chamoli), Naini Saini (Pithoragarh) and
Chinyalisaur (Uttarkashi). Would be connected under UDAN scheme soon
► Rudrapur is well connected through road network with major cities, i.e New
Delhi (243 kms), Gurgaon (267 kms), Bareilly (77 kms), Kanpur (347 kms), etc .
PPCs, i.e Chaukhutia, Gangolihat, Ramgarh and Sukhidhang are at a distance
of 196 kms, 235 kms, 91 kms, and 117 kms, respectively from Rudrapur
Road ► All PPCs would be connected to Rudrapur via Haldwani which is prominent
destination of Kumaon Region
► Project sites are likely to come under the influence of Amritsar Kolkatta
Industrial Corridor
Page 15 08 September
2020
Policies, Schemes
& Incentives
Central Government
Schemes and ► Mission For Integrated Development of Horticulture
Policies ► Industrial Development scheme for Himachal Pradesh &
Uttarakhand 2017

► State Food Processing Mission (under Department of Horticulture

State Government and Food Processing)
Schemes and
► MSME Policy 2015
Policies
► Mega Food Park

CENTRAL GOVERNMENT INITIATIVES

1. For Centrally sponsored scheme titled “Mission for Integrated Development of Horticulture”, sub
scheme Horticulture Mission for North East and Himalayan States (HMNEH) state government
department “Department of Horticulture and Food Processing” is the implementing agency.

This scheme is Credit linked back ended Capital Investment assistance of 50% of eligible cost of
technical civil work and plant and machinery (maximum up to 400 lakh)

2. Industrial Development scheme for Himachal Pradesh & Uttarakhand 2017. Two incentives under
this scheme include “Central Capital Investment Incentive for Access to Credit (CCIIAS)” and
“Central Comprehensive Insurance Incentives (CCII)”

STATE GOVERNMENT INITIATIVES

1. Project sites are spread in various districts in the State. Various incentives and concessions, such
as, Interest subsidy, rebate on stamp duty and state capital subsidy, etc are available as per
category of sites specified in the MSME Policy 2015
2. Those units established in Mega Food Park area, would be eligible for following fiscal incentives
by the State Government (as per GO No 2237(2)/XVI(1)/16-05(20)/2012 dated 20.10.2016):
➢ 100 % exemption of Stamp Duty for first time purchase of land / lease deed
➢ 100 % exemption of marketing fee since inception of commercial production for 5 years
➢ Interest subsidy at the @ 6 % per year for 5 years on bank loan
➢ Electric tariff will be give as per agriculture tariff (@ Rs 1.55 per unit) as per norms of
Uttarakhand Electric Regulatory Commission since Inception of economic production for 5
years. Uninterrupted supply of power (electricity) would be ensured.

Page 16 08 September
2020
Key Contacts

Department of Horticulture and Food Processing

Address Udyan Bhawan, Chaubatiya,
Ranikhet
District Almora

And

For visit
Mission Director,
Horticulture Mission Directorate
Government Garden, Circuit House
Dehradun - 248003
Nodal Person Director, Horticulture & Food Processing

Website http://www.shm.uk.gov.in/

Email ID missionhortiuk@gmail.com

Phone +91-135-2759799, 0135-2759796

Investment Facilitation Centre

Address Directorate of Industries
Industrial Area, Patel Nagar, Dehradun, Uttarakhand
Website www.investuttarakhand.com

Email ID ipfc@investuttarakhand.com

Toll Free 18002701213

Phone +91-135- 2559898, 2559987