Of the total project cost of Rs 11 crore in the joint venture, Rs 2.5 crore will be the equity component. The promoter will put in 89 per cent of the equity and TanAgro is expected to bring in 11 per cent. The company is also planning to approach the ministry of food processing industries for a grant of Rs 4 crore towards the project. And the rest will come from term loans from banks and other financial institutions, said Chesterton International director (projects) T Arumugam. The company is in talks with Punjab National Bank and Indian Overseas Bank.

The company has already purchased 50 acres of land at Tambaram in the city. Land will be developed by January 14, 2000 and the infrastructure will be ready by end 2000, said Arumugam. About 15 per cent of the park will be retained by the company and the rest will be sold for setting up food processing units at Rs 6 lakh per acre for developed land. A nominal rent or charges of two to five per cent of the actuals will be levied on common facilities, he said. The common facilities include cold storage, deep freezers, research and development, reefer trucks, farm coolers, effluent treatment plant, conference and exhibition halls, biomass, water, power, apart from housing, school, canteen and a medical centre.

The company guarantees to buyback 20 per cent of the produce in each unit to be sold under its common brandname. It will also help in the marketing the rest on a commission of two to three per cent. The services provided by the food park will include project consultancy, assistance in sourcing funds and raw materials, technical transfers, market tie-up and backward integration.

The company has already tied with companies and agencies in five countries abroad, including the Netherlands, Germany, the UK, Belgium and Italy for representing the Park in those countries. It has also taken 6000 acres of land in Chengulpet, Thiruvalluvar and Kancheepuiram districts of Tamil Nadu.

Some of the areas of food processing identified for the 20-odd units expected to be housed at the park are: tapuiocva flour, sesame and castor oil, biscuits and confectionery, wafers and ice-cream, processed fish, milk products, soft drinks, noodles, dry vegetables, masala powders, tamarind powder, pappad and pickles and drumstick powder.