The fate of as many as 37 project proposals under eight Agri Export Zones (AEZ) is in doldrums. According to sources, the government is not likely to approve these projects despite all required formalities being completed by Agriculture and Processed Foods Export Development Authority of India (APEDA).

These proposals with an investment outlay of Rs 471.54 crore have been obtained and forwarded to Ministry of Commerce for consideration by APEDA. The government’s take is that the AEZ scheme has not proved very fruitful during past four years. These are not performing up to the mark as envisaged by the government to attract investments and to boost exports of agriculture produce and processed food products.

The government had reviewed about 25 AEZs for evaluating the performance of sanctioned projects. It was found that very few were performing well while some registered marginal growth.

Over the past five years, the government had sanctioned around 60 such projects envisaging an investment of Rs 1,717.95 crore and exports of Rs 11,821.47 crore. But the the AEZs have underperformed to the extent of around 50 per cent - investment of Rs 811.18 crore and exports of Rs 5316.31 crore.

Speaking to The Indian Express, deputy general manager, APEDA, Harpal Singh said, “AEZs are not old wine in new bottle. They are a conversion of schemes. We have completed all the formalities for those 37 projects proposals under eight AEZs. But the government may not approve those projects considering performance of existing AEZs.”