Section 12 in The Karnataka Oil Palm (Regulation of Cultivation, Production and Processing) Act, 2013
12. Declaration of factory zone.
(1)The Project Management Committee may notify any area as factory zone for the purpose of supply of Fresh fruit bunches, to the factory specified for the purpose or for purchase of oil palm Fresh fruit bunches and any other oil palm product by the factory.(2)Where any particular area is notified as factory zone under sub section (1), the Oil Palm Growers in that area shall supply oil palm Fresh fruit bunches from the oil palm plantations grown in that area only to the factory to which the factory zone is attached.(3)Where a particular factory zone is notified under sub-section (1) the oil palm Entrepreneur/Occupier of the factory in the concerned factory zone shall buy all the oil palm fresh fruit bunches produced by the Oil Palm Growers in that factory zone as are offered for sale by them, at a price fixed by the Price Fixation Committee under this Act.(4)The entrepreneur shall establish their oil palm processing unit within three years of allotment of the area and shall keep the Oil Palm Commissioner informed about the action taken in setting up of the mill. In case the entrepreneur does not commence the processing of oil extraction unit, within the time limit, the entrepreneur shall supposed to purchase Fresh Fruit Bunches in their allotted area as per the rates fixed by the Price Fixation Committee and arrange for processing without loss in weight of Fresh Fruit Bunches and the entrepreneur shall be subjected to actions as per the terms and conditions stipulated by the Memorandum of Agreement.
