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Madhya Pradesh to come up with wine park

The govt is seeking help from the horticulture and food processing deptt and the Central Govt to develop the park.

india Updated: Dec 10, 2006 09:13 IST

Madhya Pradesh is planning to come up with a wine park soon in order to optimally utilise its good grape crop and boost revenue earnings. The move follows the cabinet approving the Madhya Pradesh Grape Processing Industry Policy 2006.

The government has also sought help from the horticulture and food processing department and the central government to develop the park. It is to be maintained by the State Agro-Industries Corporation.

The park will have well-developed infrastructure of roads, water and power to give a boost to winery activities in the state, said an official.

According to the latest decision, the wine manufactured from grapes would be deleted from the negative list to provide industrial units the benefits of the provisions of the industrial policy 2004. The cabinet has decided that it would be exempted from the excise tax and value added tax as well.

"The move is expected to enable the farmers to get a fair price for their produce, while industrial groups will also be attracted to the state due to the sops the government is offering," an official said.

Madhya Pradesh produced grapes worth 250 million tonnes in the last fiscal. Fruit cultivation contributes a lot to the state's kitty. However, the absence of proper processing facilities is a matter of serious concern, said an official.

The retailing of wine will be allowed in hotels and bars on a licence fee of Rs 1,000 for 10 years.

State Commerce and Industry Minister Babulal Gaur said, "The decision would create large-scale employment opportunities in the state and the income of farmers would certainly increase."