PROPOSAL FOR SETTING UP OF INTEGRATED MORINGA PROCESING UNIT AT

JHASUGUDA & SUNDERGARH DISTRICT ON PPP MODE.

i. Context/ Background: This section should provide a general description of

the scheme/ project being posed for appraisal.

Indian Farmers lack in basic means of irrigation, are dependent on rain,

affected by continuous changes in the climatic conditions which are hampering
the productivity. Added to that they do not have the necessary wherewithal to
aggressively pursue Markets and its trends to get better price for their produce
nor do they have the holding capacity to wait for lucrative price. In the context
of Odisha, lot can be done to enhance their economic condition and
dependency on crops. To help them Food Processing Plant may place a vital
role. Food Processing Plant may place a vital role. It is conceived that the
Purchase of “Crop” on Minimum Support Price/ Market price, whichever is
higher, would work on Key Components, which inter-alia would include
Mobilizing Communities towards planned cropping/ Crop diversification and
Set-up Farmer’s Co-operatives, build Capacity and the Markets in remote &
Rural area.

The interventions focusing on “Processing of Farmers Produces” have

substantial potential for contributing to Poverty Reduction, particularly if the
linkages to the Farmers Produces, Processing & Market development &
directing towards World Development Trends, Globalization, Handling Climate
changes and “Privatization”. Poverty reduction and the interrelated
adaptations to climate changes are becoming increasingly critical under the
given circumstances. The World Bank Development Report 2008 has, in this
context; put Agricultural and Agro-Industry Development high on the agenda,
emphasized also in a recent UNIDO (with FAO and IFAD) Publication on Agro-
Industry for Development.

The need of the hour is to gear up for the challenges up ahead by not only
being better equipped to produce “Nutritious Food” its preparation & design,
but also focus on supply chain for remote & rural areas where sacristy of
Nutritious Food produce is the key reason for Malnutrition.

ii. Aims and Objectives: This section should indicate the development
objectives proposed to be achieved, ranked in order of importance. The
outputs/ deliverables expected for each development objective should be spelt
out clearly.

An Moringa Processing Unit with Moringa Cultivation in 1000 acres is to be

established through PPP mode with the following aims and Objectives:

 To Create Opportunities for Crop Diversification towards Cash Crops.

 Farmers get good price due to direct linkage without product holding
godowns or rigorous marketing.
  Quality tested and assured produced with state of art technology will improve
human health.
 Improved Animal husbandry conditions will ensure better health and income.
 To Develop Sustainable Rural Economy.
 To Ensure Rural Health through Nutrition Programme.
 Training and demonstration centers will pave way for entrepreneurs.
 Employment opportunities in the state.
 Establish post harvest infrastructural facilities to minimize losses

iii. Strategy: This section should present an analysis of alternative strategies

available to achieve the development objectives. Reasons for selecting the
proposed strategy should be brought out. Basis for prioritization of locations
should be indicated (wherever relevant). This section should also provide a
description of the ongoing initiatives, and the manner in which duplication can
be avoided and synergy created with the proposed project.

The agro-climatic diversity in the state with its high rain fall distributed over a
four month monsoon and a reasonably moderate winter allows for growing a
variety of Horticultural crops. The normal rainfall received from June to
September from South-West monsoon is immensely suitable for growing
perennial fruit crops like mango, litchi, guava, oranges and limes : annual fruit
crops like banana, pineapple and papaya, spices like ginger, turmeric and
chilly, a variety of root and tubers and a whole range of vegetables.

Drumstick cultivation (Mоringа oleifera) is a widely cultivated variety of

therapeutic рlаnt thаt has bееn knоwn fоr itѕ mеdiсinаl properties ѕinсе a lоng
timе. It belongs tо the plant fаmilу Mоringасеае and thе gеnuѕ Mоringа.

Thiѕ vаriеtу Drumѕtiсk cultivation of plant iѕ сultivаtеd in thе semi-arid,

trорiсаl аnd subtropical аrеаѕ of thе wоrld. It is fаѕt grоwing аnd highly
nutritiоuѕ and hеnсе, has a vаriеtу оf uѕеѕ. Nаtivе tо thе southern fооthillѕ of
the Himalayas, in thе north-western zоnе оf India, drumѕtiсkѕ cultivation аrе
nоw widеlу сultivаtеd in the African соntinеnt аnd Middle Eаѕt аѕ well.

Thе рlаnt is uѕuаllу very slender, with an аvеrаgе hеight оf аbоut 10 mеtеrѕ.
The brаnсhеѕ аrе drоорing and the роdѕ оf the plant are uѕеd fоr diffеrеnt
purposes.

Moringa cultivation in 1000 acres will be started in Jhasuguda & Sundergarh

district initially. a processing facility will also be developed in the area. In later
phase project will be extended in 10000 acres.
 Introduction of Mоringа:

Nutritiоn & Health Benefits Оf Drumstick Cultivation

 Drumstick cultivation plant аrе knоwn for their high nutritiоn content аnd
almost аll thе parts оf thе рlаntѕ hаvе thеrареutiс vаluе. Its lеаvеѕ ѕеrvе as
аn excellent hеаlth tоniс fоr mаintаining аnd еnhаnсing thе strength of thе
skeletal ѕуѕtеm. Thеу аrе аlѕо uѕеd fоr thе purpose оf рurifуing the
bloodstream.
 Thе plant is extremely useful during pregnancy and lасtаtiоn аnd regular
intаkе оf a tоniс mаdе frоm itѕ lеаvеѕ рrоvidеѕ еxресtаnt mоthеrѕ with
necessary calcium, vitаminѕ аnd irоn. Thiѕ раrtiсulаrlу helps to соntrоl thе
ѕluggiѕhnеѕѕ of thе uterus, еnѕurеѕ ѕmооth flow of thе dеlivеrу process аnd
dесrеаѕеѕ роѕt-dеlivеrу соmрliсаtiоnѕ.
 The lеаvеѕ of thе plant are used tо curb digеѕtivе diѕоrdеrѕ аnd аrе rеgаrdеd
as оnе оf thе bеѕt knоwn hеrbаl treatment fоr diаrrhеа, cholera, dуѕеntеrу
аnd jаundiсе.
 Drumstick ѕоuрѕ are соnѕidеrеd аѕ a good cure fоr аnу kind of сhеѕt
соngеѕtiоnѕ, ѕоrе throats аnd coughs.
 Aѕthmа and ѕuсh оthеr lung problems саn bе сurеd tо a grеаt еxtеnt bу
inhаling the ѕtеаm оf water, in which drumsticks hаvе bееn boiled.
 Thе juiсе оf thе рlаnt iѕ grеаt fоr thе ѕkin аnd helps tо аdd glоw to a
person’s face. All уоu nееd to dо is blеnd tоgеthеr ѕоmе drumѕtiсkѕ аnd lime
juiсе аnd аррlу thе раѕtе all over the fасе. Thiѕ also helps tо trеаt
рimрlеѕ, blackheads аnd ѕuсh оthеr ѕkin рrоblеmѕ.
 A soup made frоm thе рlаnt grеаtlу hеlрѕ tо рrеvеnt infесtiоnѕ оf the skin,
chest аnd thrоаt. Thiѕ iѕ bаѕiсаllу because оf thе fасt thаt thе plant has vital
anti-bacterial рrореrtiеѕ, which аrе vеrу muсh ѕimilаr tо реniсillin and other
аntibiоtiсѕ.
 A ѕоuр made frоm drumstick flowers, bоilеd in milk, helps tо сurе ѕеxuаl
debility аnd iѕ also uѕеful in funсtiоnаl ѕtеrilitу of both males аnd fеmаlеѕ.
 A роwdеr mаdе from thе dаrk bаrk оf the рlаnt hеlрѕ tо cure рrеmаturе
ejaculation, imроtеnсу аnd thinness of the semen.

Drumstick Cultivation Popularity

Thе fаmе оf drumstick cultivation iѕ inсrеаѕing thеѕе dауѕ, аѕ iѕ еvidеnсеd by

the inсrеаѕе in еxроrtѕ оf drumѕtiсk trее products frоm Indiа. Mоringа оil is
gaining a wider rерutаtiоn bесаuѕе of itѕ health-promoting рhуtоnutriеntѕ. Thе
bеnеfitѕ of the оil are knоwn thrоughоut the wоrld аnd thе dеmаnd fоr thе
moringa оil is inсrеаѕing аѕ a treatment fоr ѕkin аllеrgiеѕ, irritаtiоnѕ, аnd
wounds.
Another reason for thе рорulаritу оf thе drumstick cultivation tree iѕ its grеаt
vеrѕаtilitу аѕ a food source. In South Indiаn сuiѕinе, thе fruit is uѕеd in various
rесiреѕ, inсluding thе very popular Sаmbhаr.
 Growing drumstick tree plants iѕ a vеrу еаѕу рrосеѕѕ. Fоllоw the ѕimрlе
рrосеdurе below to еnсоurаgе thе grоwth оf thе рlаnt from seed:
Soak thе ѕееdѕ in wаtеr for 12 to 24 hours. Thеn wrap them in a wеt сlоth.
Kеер the сlоth dаmр ѕо thаt thе ѕееdѕ dо not drу оut. Kеер the ѕееdѕ mоiѕt
аbоut a wееk until thеу gеrminаtе and sprout. Once thе seeds ѕрrоut, burу
thеm in a moist аrеа.drumstick рlаnt саn grow uр to 4 mеtеrѕ in thе first уеаr
of its grоwth аnd it can bеаr fruitѕ in thе ѕаmе уеаr.

Drumstick Cultivation Leaves

Leaves are “meaty” in taste & can be combine with any fооd you eat. The tаѕtе
iѕ juѕt inсrеdiblе. Drumѕtiсk has a “ресаnу-ѕрinасh” tаѕtе – sort оf likе “nutty”
grееnѕ. Whеn thе leaves are fresh, thеу have a ѕlight “bitе” tо thеm; one
rеаѕоn thаt it is аlѕо саllеd thе Horseradish Tree. Mоringа cooks quickly. If уоu
ѕаuté it, juѕt cook it until it turnѕ bright grееn, аnd wiltѕ a bit. Stаrt оut with
ѕmаll amounts, аѕ drumstick cultivation plant iѕ a роwеrful energy booster. For
thе bеѕt tаѕtе аnd nutritiоn, add lеаvеѕ, budѕ, blossoms right nеаr thе end оf
the cooking timе fоr most dishes.

Drumstick cultivation grоwѕ best in thе hot, ѕеmi-аrid trорiсѕ. It iѕ drоught-

tоlеrаnt and grows with rаinfаllѕ оf 250-1500 mm (10-60 in) per
уеаr. Altitudes below 600 m (2000 ft) аrе best fоr thе moringa; however, it
grоwѕ uр tо 1200 m (4000 ft) in ѕоmе trорiсаl аrеаѕ аnd hаѕ bееn rесоrdеd
growing at 2000 m (6000 ft).

A frееzе саn kill a mаturе tree bасk to thе rооtѕ, but it is сараblе оf
rесоvеring. It ԛuiсklу ѕеndѕ out nеw grоwth from the trunk when cut, оr frоm
thе ground when frоzеn. A good tеmреrаturе range fоr thе tree iѕ 25-35º C
(77-95º F), аlthоugh it can tolerate uр to 48ºC (118ºF) fоr limited аmоuntѕ of
timе.

Thе drumstick cultivation trее рrеfеrѕ wеll-drаinеd sandy оr loam ѕоil. It will
tоlеrаtе a сlау soil but nоt water lоgging. Drumstick cultivation iѕ an extremely
fаѕt-grоwing trее. It саn reach uр to 4 m (15 ft) in a year, rеасhing аn
еvеntuаl hеight оf 6-15 m (20-50 ft). The trees grоw mоrе rарidlу thаn
рарауа, with one three-month оld trее rеасhing 2.4 m (8 ft). I nеvеr knew
thеrе would be ѕuсh a trее.” Thе tree in our оrgаniс gаrdеn grеw tо about 4 m
(15 ft) in 9 mоnthѕ, аnd hаd bееn сut back ѕеvеrаl timеѕ tо mаkе it brаnсh
out mоrе. It iѕ аdviѕаblе to prune trееѕ frequently tо a ѕhrub fоrm, оr they will
bесоmе lanky аnd diffiсult to harvest. If fоlkѕ begin rеgulаrlу brеаking оff
tеndеr tiрѕ tо сооk whеn trееѕ are about 1.3 m (4 оr 5 ft) tall, thе trееѕ
bесоmе much buѕhiеr.

iv Advantage and benefits for state

 To Create Opportunities for Crop Diversification towards Cash Crops.
 Benefitting farmers of locality directly by increasing their income.

 To minimize the Financial Burden of State Government on Account of

 Purchase of Crop.
 To provide Nutritious Food to one and all.

v Activities proposed:
 Based on the studies and suggestion State Horticulture Department
cultivation of Drum stick will be promoted in 1000 acre land in the
Jhasuguda & Sundergarh District from different scheme of Horticulture
department/ NAREGA/NLM etc. APICOL & PPP PARTNER shall make a FPO
to cultivate Drumstick in their waste land. Procurement of the produce
through the FPO members will be take care by PPP PARTNER. FPOs have
been promoted and assisted by NABARD and are attached with the PPP
PARTNER.
 A 10 Ton/ Hr wet Moringa leaves Drying & Powdering Plant with Oil
extraction unit from Moringa Seed will be setup initially, further other
processing unit may be increase as per the need of State in future.
vi Land:
 The facility is proposed to be set up on 5 Acre land.
vii Location:
 The proposed plant will be setup in between Jhasuguda & Sundergarh
District.
viii Raw materials:
 The unit shall primarily deal with the Moringa Leaves & Moringa Seed to be
supplied by farmers & FPOs:
ix Target Beneficiaries: There should be clear identification of target
beneficiaries. Stakeholder analysis should be undertaken, including consultation
with stakeholders at the time of scheme/ project formulation. Impact of the
project on weaker sections of society, positive or negative, should be assessed
and remedial steps suggested in case of any adverse impact.
 Famers/Farmer Producer organizations of the locality above all beneficiary are
the target group.
x Modalities:
 The proposed facility has to be developed through PPP mode.
 It will be operated jointly by APICOL & PPP partner
 PPP partner will contribute a sum of Rs.5.0 Cr as working capital during the
course of operation.
 Daily business transactions will be recorded as per standard accounting
 procedures.
 APICOL will also render technical and managerial assistance to the unit along
with PPP PARTNER
 If required APICOL-PPP PARTNER will seek the support of NABARD & APEDA
for various marketing opportunities in other states and abroad to expand the
business.
xi Management: Responsibilities of different agencies for project management
of scheme implementation should be elaborated. The organization structure at
various levels, human resource requirements, as well as monitoring
arrangements should be clearly spelt out.
 APICOL will act as the NODAL AGENCY for implementation of this
programme. APICOL, a wholly owned corporation of Government of Orissa,
established in 1996, with an objective of promotion of commercial agriculture
including agro based and food processing industries in the State proposes to
implement the programme.
xii The facility will be operated on a PPP mode with the following roles:

Role of APICOL:

• To provide Land & Infrastructure.

• To provide various Inputs to strengthen the Production Capabilities of
Moringa Processing Unit of Odisha.
• To act as a Front End Link to mobilize and route the further Incentives &
Subsidies announced by the State and Central Governments for
Establishment of future various Infrastructure, smooth Administration and for
Distribution of Products & Services.
• Support in Marketing of products where ever & when ever required in Private,
Government & International market.
• APCOL bears no Legal Responsibilities and Statutory Bindings w.r.t. all kinds
of Law of Land related to Industrial, Labour, Food & Health Securities,
Employees Benefits etc.
• During the operational life of the project the public sector’s (APICOL) role is
to monitor the performance of the private partner and enforce the terms of
the contract.

Role of PPP PARTNER:

• To arrange the working capital.
• Construction of Building & Set up of the plant and machineries as per the
Project cost & design.
• To act as a catalyst for successful operation of Project.
• To act as Service Provider for the SPV to avail all kinds of Subsidies/
Incentives available from State and/or Central Government for successful
implementation of the Concept Plan of Establishment & Operation of Project.
• To fulfill all the Obligations of remittance of all the charges to the APICOL.
• To shoulder all kinds of Legal Responsibilities and Statutory Bindings w.r.t. all
 kinds of Law of Land related to Industrial, Labour, Food & Health Securities,
Employees Benefits etc. through SPV.
• The PPP PARTNER is responsible for carrying out or operating the project and
takes on a substantial portion of the associated project risks
The PPP unit/facility will have the public and private partners working
together to build and sustain a long-term relationship that is of benefit to all
stakeholders. This facility centre will bring the public and private sectors
together as partners in a contractual agreement, matched to the life of the
infrastructure assets used to provide the services

Xiii Finance: This section should focus on the cost estimates, budget for the
scheme/ project, means of financing and phasing of expenditure. Options for
cost sharing and cost recovery (user charges) should be explored. Issues
relating to project sustainability, including stakeholder commitment, operation-
maintenance of assets after project completion and other related issues should
also be addressed in this section.

Financial assistance sought for the centre is estimated as follows:

Enclosed

xiv Time Frame: This section should indicate the proposed zero date for commencement
and also provide PERT/CPM chart, wherever relevant.

Starting from July'18 the unit will be completed by March' 2019.

xv Cost Benefit Analysis: Financial and economic cost-benefit analysis of the project
should be undertaken wherever such returns are quantifiable. Such an analysis should
generally be possible for infrastructure projects, but may not always be feasible for
public goods and social sector projects.

Project report is enclosed with

xvi Risk Analysis: This section should focus on identification and assessment of
implementation risks and how these are proposed to be mitigated. Risk
analysis could include legal/ contractual risks, environmental risks, revenue
risks, project management risks, regulatory risks, etc.

Risks will be there like:

  Loss during Transportation of fruits & vegetables from various parts of
Odisha which will be mitigated by ensuring of transported goods.
 Loss of weight during storage in cold storage

xvii Outcomes: Success criteria to assess whether the development objectives

have been achieved should be spelt out in measurable terms. Base-line data
should be available against which success of the project will be assessed at the
end of the project (impact assessment). Success criterion for scheme
deliverables/ outcomes should also be specified in measurable terms to assess
achievement against proximate goals.

 Thus there will be increased profits for APICOL & PPP PARTNER and higher
income to farmers/FPOs
 Increased rural employment both in farm & non-farm sectors (transportation
& at facility centre)
 The centre will act as a Agro Processing & Training cum Demonstration
Center for Farmers & Entrepreneur of Odisha.

xviii Evaluation: Evaluation arrangements for the project, whether concurrent,

mid-term or post-project should be clearly spelt out. It may be noted that
continuation of schemes from one period to another will not be permissible
without a third-party evaluation.

The project is of one year duration. The results can only be observed during and after
the project period. Therefore, it is proposed to take up a third party evaluation during
June-September 2019. Concurrent evaluation will be done to examine the planning
and implementation process (delivery of inputs-physical, financial, capacity building)
and monitoring mechanism in the context of approved plan of action.

xix RKVY operational guidelines

(a) Funds available under other schemes of the State Government and / or Government of
India for the proposed projects have been accessed and utilized before they are brought
under the RKVY umbrella.
b) RKVY projects/activities should not create any duplication or overlapping of
assistance/area coverage vis-a-vis other schemes/programmes of State/Central
Government.
c) RKVY funds are not being proposed as additional or “top-up” subsidy to other
ongoing schemes/programmes of State/Central Government;
d) State Agriculture Infrastructure Development Programme (SAIDP) has been prepared;
e) At least 25% of total value of projects including ‘Production Growth’ and ‘Assets &
Infrastructure’ streams have emanated from comprehensive district agricultural plan
(CDAP) and have been approved by the District Panchayati Raj Institutions (PRI’s) so that
field level gaps are correctly addressed;
f) DPRs have included provision for monitoring and evaluation;
g) For Research Projects proposed under RKVY, clearance of Indian Council of
Agriculture Research (ICAR) has been obtained;
h) Convergence with other State/ Central Schemes has been attempted; and
i) Recommended projects ensure adequate allocation to allied sectors including Farmer
Producer Organisation (FPO).
Certified that the above instruction of the guidelines will be followed during
implementation of the project.
MANAGING DIRECTOR
APICOL-ODISHA