Cloud kitchen clusters to be set up by Delhi government in industrial areas

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Cloud kitchen clusters to be set up by Delhi government in industrial areas
Cloud kitchen clusters to be set up by Delhi government in industrial areas

Setting up of cloud kitchen clusters in industrial areas can provide access to industrial power tariff, which is lower than the commercial rates, and possible exemption from dine-in regulations

Cloud kitchen clusters may be set up by the Delhi government in already existing industrial areas. Dialogue and Development Commission (DDC) of Delhi, in the first stakeholder consultation with the representatives of cloud kitchens and food delivery aggregators to seek their inputs for creating a roadmap for growing the cloud kitchen segment, mooted the idea of using the city’s industrial areas for the purpose.

According to officials, setting up of cloud kitchen clusters in industrial areas can provide access to industrial power tariff, which is lower than the commercial rates, and possible exemption from dine-in regulations. “As the setting up of such cloud kitchen clusters will not require change of land use, they may be exempt from conversion charges as well,” DDC said.

Officials said, with the allocated spaces being equipped with several plug-and-play features like power connection, PNG connection, effluent treatment and common facilities like shared cold storage and parking space; such cloud kitchen clusters can significantly ease the process of setting up the cloud kitchens.

The Delhi government said in a statement that chief minister Arvind Kejriwal’s decision was welcomed by the participants with enthusiasm to recognise cloud kitchens as an industry and to bring out a dedicated ‘cloud kitchen policy’ and also gave several practical inputs to ensure the initiative becomes successful.

To boost cloud kitchens, the proposal was first unveiled recently as part of the Kejriwal government’s employment-focused ‘Rozgar Budget’ 2022-23 that plans to create 20 lakh jobs in the next five years in Delhi.

“The Delhi government is very hopeful about the growth potential of the concept of cloud kitchens as an industry as its model is low-risk, cost effective and scalable, allowing for high profit margins even for players with less capex,” DDC vice-chairman Jasmine Shah said.

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