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IDFC likely to pick up 29 pc stake in Tanflora project

R. Balaji

Earlier, the project envisaged that the growers setting up floriculture units within the park will take equity in the company. However, there has been change in the strategy and IDFC is likely to come on board.

CHENNAI, March 22

IDFC Ltd is likely to take a 29 per cent stake in the Rs 25 crore Tanflora Infrastructure Park Ltd, and discussions are in advanced stages, according to sources.

At present, the State-run Tidco (Tamil Nadu Industrial Development Corporation) has brought in Rs 2.91 crore, International Finance Corporation Rs 2.24 crore and the private promoter, Rs 2.80 crore, as their stake in the equity. IDFC is likely to bring in Rs 3.25 crore, they said.

Earlier, the project envisaged that the growers setting up floriculture units within the infrastructure park would take equity in the company. However, there had been change in the strategy, and IDFC was likely to come on board, they said.

Meanwhile, about 15 growers have been selected for setting up floriculture units within the park, each with a one hectare green house facility. Tidco recently came out with advertisements calling for more growers to set up units, and there is sufficient space for an additional 35 units. A model park has been established, and exports have commenced to international auctions. The Tanflora brand has been registered abroad.

For an investment of a one hectare green house facility of Rs one crore there is a subsidy assistance of Rs 20 lakh, Rs 40 lakh loan from the National Horticulture Board at concessional rates. In addition, the State Government offers a range of benefits under the floriculture policy. Over 220 acres of land has been acquired and developed, and the park extends over 80 acres with common infrastructure facilities for the benefit of the 50 units expected to come up at the park.

The State Government signed an MoU with the APEDA (Agriculture and Processed Food Products Export Development Authority) of the Union Commerce Ministry to set up a Rs 24.85-crore agri-export zone for cut flowers at Hosur Taluk, Dharmapuri district earlier this week. Tanflora will be hub for the cut flower agri-export zone, which is expected to give a fillip to the floriculturists in the State.

The agri-export zone for cut flowers is a pioneering effort in India, and is the first of the seven more agri-export zones proposed for horticulture and floriculture. These zones are to come up in areas where specific crops are cultivated in abundance. The Department for Agriculture Marketing and Agri-business will be the nodal department and Tidco, the State nodal agency.

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