FOOD PROCESSING INDUSTRIES - INCENTIVES

The Ministry of Food Processing Industries had been operating several plan schemes for the development of processed food sector in the country since the Inception of Eighth Plan Period (1992-97).

Taking into account the recommendations of the Working Group of Planning Commission, the constraints faced by Industry, the need to accelerate growth of this sector, and the priority status accorded to it by Government, the Ministry of Food Processing Industries proposes to operate the following Plan schemes during the Ninth Plan, commencing in 1997.

SCHEME FOR DEVELOPMENT OF INFRASTRUCTURAL FACILITIES

The scheme aims to support for creation of infrastructural facilities in various sectors of food processing industries. It has the following 3 components:

Component –1

Establishment Of Post-Harvest Infrastructure And Cold – Chain Facilities For Food Processing And Integrated Projects Of Mushrooms, Hops, Gherkins And Baby Corn

Objectives

a. Provide / develop post harvest infrastructure like establishment of cold storage and cold chain facilities etc.

Under the Scheme of Infrastructure facilities, assistance for setting up of cold storage will be limited to :

i. Setting up of modified / controlled atmospheric cold storage.

ii. Cold storage, which is an integral part of processing activities .

iii. Cold storage, which is a part of setting up food parks

iv. Or commodities other than horticulture produce.

b. Build up efficient post harvest handling system right from the farm to retail marketing.

c. Develop setting up pre-cooling facilities, refrigerated transportation system and refrigerated retail outlets.

d. Develop cold storage system etc. (major ports and airports for foot products meant for export).

Pattern of Assistance
PSUs Joint sector NGOs /Cooperatives  50% of the cost of capital equipment and technical civil worksupto Rs. 50 lakhs Grant
Private sector 25% of the cost of capitalequipment andtechnical civil worksupto Rs. 50 lakhs Grant

Component –2

Establishment of Food Processing Industrial Estates / Food Parks

Objective

To help establish Food Processing Industrial Estates / Parks by providing assistance for common facilities such as Uninterrupted Power supply, Water supply, cold storage / ice plant / warehousing facilities, effluent treatment plant, quality control and analytical laboratory and major processing facilities like Fruit concentrate / pulp making unit etc.

Pattern of Assistance
PSUs/Joint/ Assisted/ Private Sector /NGOs /Cooperatives Upto Rs. 4 crores for creation of common facilities Grant

Component –3

Infrastructural Facilities For Preservation And Processing Of Fish

 

Objectives

The main objectives are to create additional facilities for preservation and processing of fish so that the benefits of the same are available to traditional fisherpersons.

Pattern of Assistance
NGOs/ Cooperatives

50% of the cost of capital  equipment and technical civil works upto Rs. 25 lakhs

 Grant
PSUs

50% of the cost of capital equipment and technical civil works upto Rs. 50 lakhs in difficult areas

  Grant

Private sector

25% of the cost of capital equipment and technical civil works upto Rs. 50 lakhs

 Grant

 

SCHEME FOR SETTING UP / EXPANSION / MODERNISATION OF FOOD PROCESSING INDUSTRIES

The Scheme has the following three components :

Component –1

Setting Up / Expansion / Modernization Of Food Processing Units

Objectives

Provision of assistance for setting up of food processing units including those of spices, coconut, walnut and cashew nut or upgradation and expansion of such units. This will also include establishment of infrastructural facilities for mushroom cultivation and processing consisting of :

(i) Composed pasteurization units

(ii) Spawn lab

(iii) Other processing facilities

(iv) Marketing support etc.

In the case of setting up of hops processing plants, procurement of pipes and supported structures, support for cultivation practice etc. would qualify for assistance.

Pattern of Assistance
Private Sector / NGOs / Cooperatives 25% of the cost of capital equipment and technical civil works upto Rs. 25lakhs  Grant
Joint Sector 25% of the cost of capital equipment and technical civil works upto Rs. 25 lakhs in difficult areas Grant
PSUs 50% of the cost of capital equipment and technical civil works upto Rs. 25 lakhs in difficult areas Grant

Component –2

Scheme for Modernization OF Pulse Milling Units

Objectives

Installation of dryers and dust control system for drying of pulses / control of dust during processing for achieving productivity and efficiency.

Pattern of Assistance

PSUs/Joint/Assisted / Private Sector / NGOs / Cooperatives

 50% of the cost of Dryer and Dust  Control System upto Rs. 2.75 lakhs Grant

Terms & Conditions

The implementing agencies are required to produce copies of bills from the equipment supplier as well as proof of having installed them.

Component –3

Dissemination Of Low Cost Preservation Technology

Objectives

To encourage setting up units using low cost preservation technology developed by National Institutions.

Pattern of Assistance
PSUs / NGOs/ Cooperatives Actual cost of technology  (charged by CFTRI / other national R&D institutes) and plant and equipment upto Rs. 5 lakhs Grant