Meltdown hits state, Rs 800-cr citrus FDI in limbo

While India is still debating the impact of global economic crisis on its economy, Punjab is already feeling the heat.

While India is still debating the impact of global economic crisis on its economy, Punjab is already feeling the heat. Even as its much-hyped public-private partnership (PPP) infrastructure projects are facing delay due to the liquidity crunch, the global meltdown has now hit Punjab’s prospects of getting its first foreign direct investment (FDI) in agriculture.

Multi-national venture capital fund company, Cannizaro Holdings, has developed cold feet and is not coming forward to sign a MoU with the Citrus and Agri Juicing Council of Punjab. It was in February this year that a MoU was likely to be inked between the state government and Cannizaro, the biggest-ever foreign investment in agriculture sector in the country, with the firm expecting to invest a whopping Rs 800 crore.

Despite months of negotiations and Punjab changing its stand from no-guarantee to up to Rs 10-crore guarantee, the company, it was learnt, has expressed its inability to commit itself to the deal. While confirming the development, Punjab Financial Commissioner (Development) RS Sandhu said it was not the end of the road and the department was looking for other options.

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The Punjab government had earlier offered a guarantee of Rs 20 crore to the Citrus Council-Pepsico project of bringing over one lakh acres under citrus cultivation in Punjab. But the council later ran into trouble with farmers owing to paucity of funds, as it could not pay them the lease money for the orchards.

With fund-starved Punjab too refusing to have any further stake in the programme, the council was given the option of roping in a venture capitalist.

Hope floats: Global vaccine giant submits Rs 500-crore proposal

Punjab today received a proposal of Rs 500-crore FDI from Merial for setting up a vaccine facility at Lalru. The US-based pharmaceutical giant today firmed up its $ 100 million (Rs 500 crore) FDI proposal for setting up a foot and mouth disease (FMD) vaccine manufacturing project.

Merial president Dr Jean-Loius Crosia had a breakfast meeting with Punjab Chief Minister Parkash Singh Badal at his official residence today.

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Crosia said they decided in favour of Punjab after studying other destinations such as Andhra Pradesh, Gujarat, Himachal Pradesh and Karnataka. This would be the fourth FMD vaccine manufacturing plant of the company in the country.

The first phase of the project would be completed by 2010 for which the company has already purchased 20 acres of land in Lalru.

“The new biotechnology facility with world-class process and standards for production and R&D will be comparable to our facilities in the UK, Brazil and France,” Crosia said.

“The FMD vaccine project would give a boost to the dairy industry in the state, as Punjab has the highest per capita availability of milk per day, which is 3.88 times higher than the national average,” Badal said.

Debris found in Dal Lake could be from missile Pak fired during Op Sindoor

India1 hr ago

Debris believed to be from a missile fired by Pakistan during Operation Sindoor in May has been found in Srinagar's Dal Lake. The debris has been handed over to the Air Force for further investigation. Sources say the target may have been a military installation in Srinagar, which is close to the lake. The make of the missile is yet to be determined.

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