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Vishwanath Kulkarni

BANGALORE, Jan. 24

TANFLORA, the floriculture incubator project being set up by the Tamil Nadu Industrial Development Corporation (Tidco) and the Bangalore-based CCL Flowers near Hosur will be converted into an agri-export zone (AEZ).

A memorandum to this effect would soon be signed between the Agricultural and Processed Food Products Export Development Authority (Apeda) and Tanflora, said Mr Anil Swarup, Chairman, Apeda.

The Centre has recently sanctioned an AEZ for flowers in Tamil Nadu with the objective of making use of facilities under the scheme for Tanflora.

Consequent to declaration of Tanflora as an AEZ, the produce of this project would be entitled to various fiscal incentives. The AEZ status would also facilitate forward linkages with regard to marketing of the produce, identified as a major handicap in export of flowers.

Exports from this zone are likely to commence from September 2002 and Apeda estimates that over the next five years exports worth Rs 150 crore would take place.

The project with one model unit had commenced commercial operations and 12 units of one hectare each had already been allotted, said Mr Nadeem Ahmad, Managing Director of CCL Flowers. About 20 more units would be allotted by June this year by the Tidco allotment committee, he said.

The 240-acre Tanflora project will have some 50 hectares under greenhouse. It entails an investment of Rs 24.85 crore, of which the Centre has contributed nearly Rs 3.48 crore. Tidco holds 26 per cent stake in project while the co-promoters, CCL Flowers hold 25 per cent. The International Finance Corporation has picked a 20 per cent stake and other financial institutions and member-growers contribute the balance 29 per cent.

The project concept has been inspired from AGREXCO, a Government-sponsored flower growers' cooperative in Israel that was instrumental setting up the Israeli industry.

Tanflora was one of its kind in India customised to specific requirements of the Indian growers, said Mr Ahmed. Tanflora is expected to redefine the profitability norms of the industry by operating on economies of scale and offering pooling and sharing facilities.

The park provides post-harvest and marketing infrastructure facilities for the common benefit of member-grower units.

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