Capital Foods & Pantaloon plan to float SPV for food parks

FMCG player Capital Foods and Kishore Biyani-led Pantaloon Retail plan to float a special purpose vehicle that would invest Rs 300 crore in setting up two mega food-parks in Maharashtra and Karnataka. The two parks will be set up in Shilwar in Maharashtra and Kolar in Karnataka and the companies are presently awaiting government approvals for the projects. The SPV will be floated after obtaining regulatory approvals. Construction work will commence immediately after receipt of approvals. The parks are being set up under the Mega Food Park Scheme of the government that aims to encourage Public-Private Partnership (PPP) in creating rural infrastructure in the food processing sector. Of the total cost of Rs 300 crore, Rs 50 crore will be funded by the government.