Reliance to develop Punjab as fruit veg hub

RIL TO DEVELOP PUNJAB AS ITS PRINCIPLE SOURCE OF PROCUREMENT OF FRUITS AND VEGETABLES
Reliance is guaranteeing to invest a minimum of Rs.500 crore in the fruit, vegetables and perishable/retail sector in Punjab as integrated part of its Super Mega Agri Project, according to a spokesman of the Punjab government.
The actual investment over the next 3 to 5 years may cross Rs.3000 crores. Reliance was proposing to make Punjab as its principle source of procurement of fruits, vegetables, milk and other agri-produce, which would be marketed all over the country through its retail network. Reliance would also provide Punjab farmers with inputs such as quality seeds, fertilizers, pesticides, weedicides as well as hi-tech facilities such as drip irrigation and net/green houses etc. Six hubs, including one at Mohali would be operational by December 2006 itself. The spokesman said that lakhs of Punjabi farmers would benefit from the project as growing fruits and vegetables would give agriculturalists 2 to 3 times the income from traditional agriculture.

The spokesman further said that the proposal of RIL had been discussed in the Empowered Committee of the Chaired by the Punjab Chief Minister Capt. Amarinder Singh and RIL had given its long term programme details which would include 50 plus procurement centers all over Punjab and would also include big processing facilities for milk, fruits and vegetables and poultry. Once the project takes off, RIL would be purchasing perishables worth thousands of crores from Punjab's agriculturists.

The spokesman said that land available with Punjab Small Scale Industries Export Corporation (PSIEC) in Goindwal, Malout, Muktsar, Mansa, Tanda etc. had been lying unutilized for the last 10 to 15 years. The land represented a dead investment which was giving no returns to Punjab's farming community as so far no agri or rural based industry had come up at all. It would now be sold to RIL thereby giving PSIEC some return on its investment and would also benefit the farming community in the surrounding area besides, PSIEC would also get a lump sum payment instead of small installments.

The spokesman further said that Panchayats all over the State were extremely keen that RIL should open procurement centers in their areas since the villagers in the proximate areas would benefit from remunerative crop returns & income and appreciation in value of their lands. Panchayats were freely offering to sell their lands and the Deputy Commissioners were authorized to fix the appropriate rates for the same. Panchayats would also therefore benefit by having a large corpus of funds for developmental works.

The spokesman further clarified that no concession was being given on Mandi fee, Rural Development Fund and Infrastructure Development cess on items such as FAQ wheat and coarse paddy. On the other hand there was hardly any revenue coming to the State on other items such as fruits, vegetables etc. a lot of which had already been exempted thereby giving a concession on other items to RIL and other mega projects in the agri sector entailed no loss but would give long term benefits in terms of VAT and other revenue to the other State Government while farmers would also get much higher incomes.

As far as the Mohali land was concerned the spokesman said that the land proposed to be allotted to RIL would serve as their major regional hub for high value and cold chain items. Once fully developed the Mohali Center would catered to over 50000 acres of land under high value horticulture. The additional annual income from this area to farmers would itself run into hundreds of crores. The biggest beneficiaries would be small and marginal farmers.

The spokesman further said that since RIL would be running its own mandis for high value horticulture produce in Mohali and other areas their establishment was in the farmers interests and the land in Mohali had also been acquired keeping in view the need for providing marketing support to the farmers. Hence there was no change in its basic concept or purpose.

The spokesman lamented that if Punjab did not take advantage of such super mega projects and mega projects in the agri sector, it would be a great and permanent loss to the farming community of the State. He said that such investments would flow to other parts of the country and a unique opportunity of immense potential benefit to the farming community would be lost. He said that the Chief Minister and his Cabinet were determined to push Punjab on the path of progress particularly in the agriculture sector and the Government would offer what ever incentives were appropriate to facilitate such projects. He said that RIL was of course the largest project but there were many other mega projects also who would be given all facilities and help.