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“There is no scheme in the Ministry of Food Processing Industries (MoFPI) for upgradation, modernization and revival of sick food processing units in the country,” said the Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti in a written reply in Lok Sabha.
However, the minister added that a scheme for Technology Upgradation / Establishment / Modernization of Food Processing Industries was being implemented under National Mission on Food Processing (NMFP), during the 12th Plan w.e.f. April 1, 2012 through State/UT Governments for providing financial assistance for creation of new processing capacity and up-gradation of existing processing capabilities in food processing sector.
Under the scheme, the eligible organizations to which grant-in-aid is provided are all implementing agencies/ organizations such as Government/ Public Sector Units/ Joint Ventures /Non-Government Organizations/ Cooperatives/ Self Help Groups/ Private Sector/ individuals engaged in establishment/ upgradation/ modernization of food processing units. Eligible Food Processing Sectors under the scheme are fruits and vegetables, milk/meat/poultry/fish products, cereal/other consumer food products, rice/ flour/ pulse/ oil milling and such other agri-horti sectors including food flavours, colours, oleoresins, spices, coconut, mushrooms, wines and hops.
The pattern of assistance under the scheme was as follows:
• 25% of the cost of Plant & Machinery and technical civil works, subject to a maximum of Rs 50 lakhs in general areas.
• 33.33% of the cost of Plant & Machinery and technical civil works, subject to a maximum of Rs 75 lakhs in difficult areas (i.e. Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands and Lakshadweep) and Integrated Tribal Development Project (ITDP) areas.
• 50% of the cost of Plant & Machinery and technical civil works, subject to a maximum of Rs100 lakhs for North-Eastern States including Sikkim.
However, Sadhvi Niranjan Jyoti further said that the National Mission on Food Processing and consequently the above scheme being a part of it has been delinked from the central government support with effect from April 1, 2015 in view of increased resource allocation to States resulting from the recommendations of 14th Finance Commission and presently, the scheme is at the disposal of State/Union Territories Governments.