MP farm draws Bharti

The Bharti group has shown interest in government-owned 3,200-acre Babai farm in Hoshangabad.

"As regards MP-specific details about the agro venture of Bharti, we are evaluating our options in the state," chairman Sunil Mittal said in a response to an email question.

Though the company is yet to reveal its plans to enter into the agro business through its joint venture FieldFresh Foods Pvt Ltd, a government source told Business Standard, "A Bharti executive wrote a letter recently to Chief Secretary Vijay Singh and has expressed interest in the Babai farm."

FieldFresh Foods is a joint venture between Bharti Enterprises Ltd and UK-based ELRo Holdings India Ltd, an investment company founded by Sir Evelyn de Rothschild and Lady Lynn Forester de Rothschild.

The $50-million joint venture is initially focusing on the distribution of fresh fruits and vegetables in global markets and the second phase could be one of agro processing. "The company intends to enter into the processing of agro products," Sunil Mittal said on email.

The company plans to set up an agro research centre and a model farm in Punjab in the first phase, which will include sourcing and contract-farming activities in Punjab, Jammu & Kashmir, Himachal Pradesh, Haryana, Western UP, and Uttranchal.

FieldFresh also has plans to put in place a food supply chain involving the construction of cold storage facilities, processing plants, and cold transportation capabilities.

To set up this entire chain of backend infrastructure, the company is in the process of tying up with strategic partners.

The Bharti group is the third big corporate house to show interest in the Babai farm. Earlier, Reliance had dropped its plans to join hands with the state government, and the Rs 230-crore plan of an Indian arm of Canadian company Spaceage Advanced Technology Ltd attracted protests from the government's agro employees and locals of Babai and Hoshangabad.

"Talks had reached a critical stage but employees wanted global tenders floated to have joint ventures with corporate houses through a cooperative body of local people, employees, and government representatives," said a government source.

Responding to Bharti's letter, chief secretary Vijay Singh has asked Markfed and the MP State Agro Industries Development Corporation, the nodal agency for the Babai farm, to examine the possibility of attracting private investment in the farm.

However, only an apex committee under the chief minister can decide on global tenders and private investment in the state.

According to the Industrial Promotion Policy 2004, any project of above Rs 10 crore (Rs 100 million) is considered a mega one in the agro industry.