Govt implementing schemes for setting up of new food processing industries

11 March 2015 | News | By Bureau Report

The Government is implementing various schemes to encourage setting up of new food processing industries and cold storages/cold chains. Central Sector Scheme of Cold Chain, Value Addition & Preservation Infrastructure is being implemented by the Ministry of Food processing Industries which aims at providing integrated and complete cold chain and preservation facilities without any break from the farm gate to the consumer.

Sharing this information to a question in Lok Sabha, the Minister of State for Food Processing Industries, Sadhvi Niranjan Jyoti said that the admissible grant for Cold Chain project is in the form of grant-in-aid @ 50% the total cost of plant, machinery and technical civil works in general areas and 75% for difficult areas (North-East States including Sikkim and J&K, Himachal Pradesh, Uttarakhand) subject to a maximum of Rs 10 crore.

Scheme of Cold Chain, Value Addition & Preservation Infrastructure (for Non-Horticultural Products) as a component of the Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) is also being implemented by the State/UT Governments since April 1, 2012.

Department of Agriculture & Cooperation is implementing Mission for Integrated Development of Horticulture (MIDH) for development of Horticulture in the country which includes assistance for creation of post-harvest infrastructure including establishment of cold storage, processing units, pack houses, pre-cooling units, controlled atmosphere storage, reefer vans and setting up of ripening chambers. Under Post harvest component credit linked back ended subsidy @ 35% of the project cost in general areas and 50% in case of hilly and schedule areas is available.

Under the Agricultural Marketing Infrastructure (AMI) sub scheme of the integrated Scheme for Agricultural Marketing being implemented by Department of Agriculture and Co-operation, subsidy is available for construction of Cold storages when created as part of Integrated Value Chain (IVS) Projects @ 33.33% in case of North-Eastern (NE) States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly areas, Registered FPOs, Panchayats, Women, SC/ST entrepreneurs and their cooperatives and Self-help groups. Subsidy is @ 25 % for all other categories of beneficiaries.

Under its XII Plan Scheme, APEDA provides 90% grant-in-aid to State Government agencies for setting up of cold storage facilities for common use for exports. Assistance to private exporters is also provided up to 40% as subsidy with a ceiling of Rs. 7.5 lakhs to Rs. 75.00 lakhs for different components of Cold Chain.

Department of Economic Affairs (DEA) also has Scheme for Support of Public Private Partnerships in Infrastructure which is available for capital investment in the creation of modern storage capacity including cold chains and post-harvest storage.

Government has established the National Centre for Cold-chain Development (NCCD). NCCD provides technical guidance, conducts knowledge dissemination activities and addresses industry concerns on development matters.

To promote setting up of new food processing units as well as technological up-gradation and expansion of existing food processing units in the country, a Central Sector Scheme of Technology Up-gradation/Establishment/Modernisation of Food Processing Industries is being implemented by Ministry of Food Processing Industries. The scheme envisages financial assistance @ 25% of the cost of Plant & machinery and technical civil works, subject to a maximum of Rs 50 lakh in general areas, @33.33% of the cost of Plant & machinery and technical civil works, subject to a maximum of Rs 75 lakh in difficult areas (i.e. Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands and Lakshadweep) and Integrated Tribal Development Project (ITDP) areas and @50% of the cost of Plant & machinery and technical civil works, subject to a maximum of Rs 100 lakh for North-Eastern States including Sikkim. This scheme has been subsumed in the National Mission on Food Processing (NMFP) with effect from 1st April, 2012 which is being implemented through State/ UT Governments. Under the Mission, State Governments are empowered to receive the applications, sanction and release the grants-in-aid to the eligible beneficiaries. Mission provides flexibility to States / UTs in the selection of beneficiaries and location of projects etc. as per their specific requirement and priorities so as to better ensure the development of food processing sector.

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