Special Purpose Vehicle for Management of Mega Food Parks

Posted: March 13, 2013 in Current affairs

IAS Preparation Online

The execution, ownership and management of the Mega Food Park is vested with a Special Purpose Vehicle (SPV). The main eligibility criteria of the SPV is indicated below:

i. The SPV shall be a Body Corporate registered under the Companies Act.

ii. Each SPV would have at least three entrepreneurs / business units, with the entrepreneurs being independent of each other and business units with no common directors.

iii. The promoter holding maximum equity in the SPV will be the lead promoter. The lead promoter will be primarily responsible for co-ordination with all stakeholders including with the Ministry of Food Processing Industries to ensure effective implementation of the project.

iv. At least 26 percent of equity of the SPV should be held by food processor(s) within the SPV.

v. The combined net worth of shareholders of the SPV should not be less than Rs.50 crore with food processor(s) having at…

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