Laying the foundation stone near here, the Chief Minister said the project was aligned to his vision for the state's rapid industrialisation to create jobs for the youth and boost revenue for the state.
Being set up over 52 acres at an estimated cost of Rs 521 crore, the vegetable processing plant will have a processing capacity of 80,000 metric tonnes per annum, with the eventual investment expected to touch Rs 1,000 crore.
The project, which will create 2,500 direct and indirect jobs, will also help boost farm income as the plant will procure 15,000 metric tonnes of raw vegetables directly from the local farmers within a radius of 150 kilometres, said the Chief Minister.
The project will have facilities to process a wide range of individual quick freezing vegetables like broccoli, cauliflower, carrot, green peas and corn, and to process potatoes to manufacture french fries and potato snacks.
Commercial production is likely to start in 2020.
It will bring Spanish know-how in the agri-sector to India and will boost overall infrastructure within the agro economic ecosystem.
The company will provide training to the farmers in the new and modern techniques of farming and will work closely with farmers to provide them information on using new techniques, seeds, pesticides, balance fertilization, and crop rotation leading to increase in farm productivity and quality of agri-produce.
Pointing out that the state's new industrial policy has been received extremely well, Amarinder Singh said the revival of the Mandi Gobindgarh industrial belt has seen 600 exiting units restore operations, with 40 new units also investing in the region.
The government has inked 299 pacts worth Rs 51,969 crore with companies.
He said 650 new projects worth Rs 46,902 crore, with a proposed employment of 167,309 people, have come up during the tenure of his government.
( With inputs from IANS )