Lok Sabha Question No. 5165 (UNSTARRED), answered on 2018-03-27
Subject: Financial Crisis in Food Processing Projects
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: FAGGAN SINGH KULASTE

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION No. 5165

ANSWERED ON 27 TH  MARCH, 2018

## FINANCIAL CRISIS IN FOOD PROCESSING PROJECTS

## †5165.  SHRI FAGGAN SINGH KULASTE:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether  food  processing  entrepreneurs  in  several  States  are  facing  acute  financial  crisis  due  to shifting of National Mission on Food Processing to the States and if so, the details thereof;
- (b) the number of projects sanctioned under the National Mission on Food Processing throughout the country as on 31st March, 2015 and the amount of funds sanctioned by the Union Government for these  projects  alongwith  the  amount  of  fund  allocation  made  by  the  State  Governments  in their budget for the said scheme during the last three years, year and State-wise;
- (c) the number of food processing projects in operation after the shifting of the scheme to the States including the number of projects discontinued and the number of projects which have not taken off, State-wise;
- (d) whether  the  Government  has  received  memoranda  on  the  issue  from  various  States  and entrepreneurs and if so, the details thereof; and
- (e) the  steps  being  taken  by  the  Government  for  redressal  of  the  problems  /  grievances  of  the financially affected entrepreneurs so that food processing units do not get closed?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SADHVI NIRANJAN JYOTI)

(a): The  Ministry  has  launched  a  Centrally  Sponsored  Scheme  (CSS)  -  National  Mission  on  Food Processing  (NMFP)  w.e.f.  01.04.2012  which  was  implemented  through  States  /  UTs  Govt.  However, NMFP has been de-linked  from  Central  Govt.  support  w.e.f.  01.04.2015  in  view  of  increased  resource devolution  to  states  as  per  the  recommendations  of  14 th Finance  Commission.  Accordingly,  the  State Govts. have been requested to take a decision regarding continuation of NMFP.

In addition,  Ministry of Food  Processing  Industries is  providing grants  to  Food  Processing entrepreneurs  under  different  categories  under  Pradhan  mantra  Kisan  SAMPADA  Yojana  launched  in May, 2017.

(b)  &  (c): National  Mission  on  Food  Processing  (NMFP)  was  a  Centrally  Sponsored  Scheme  (CSS) wherein  Ministry  of  Food  Processing  Industries  used  to  place  funds  at  the  disposal  of  respective  State Governments.  State  Level  Empowered  Committee  (SLEC)  chaired  by  Chief  Secretary  of  the  State  had been  vested  with  all  the  powers  of  approving  /  sanctioning  of  the  applications  received  under  NMFP. Details of the funds allocated and released state-wise / UT-wise as central share under NMFP in the year 2012-13, 2013-14 and 2014-15 are at Annexure-I .

(d) & (e): Representations in respect of delinking of NMFP from Central Government Support are received by the Ministry of Food Processing. In this regard, Ministry of Food Processing Industries had requested Ministry of Finance to allocate committed liabilities of Central Government Share under CSSNMFP as State Governments are claiming the liabilities and that applicant under the scheme are largely small entrepreneurs. The Ministry of Finance is of the view that the scheme has been delinked from Central Government as a consequence of higher devolution of funds to states.

*****

ANNEXURE-I REFERRED TO IN REPLY TO PART (b) OF THE LOK SABHA UNSTARRED QUESTION NO.  5165  ANSWERED  ON  27.03.2018  REGARDING  FINANCIAL  CRISIS  IN  FOOD  PROCESSING PROJECTS.

Statement indicating State / UT-wise allocation and funds released to State / UT Governments by Govt. of India (GOI) for implementation of CSS-NMFP during 2012-13 to 2014-15 (31.03.2015) before de-linking of CCS-NMFP from central government support

(Rs. in Crore)

| S. No.              | 2012-13    | 2012-13            | 2013-14    | 2013-14            | 2014-15    | 2014-15            |
|---------------------|------------|--------------------|------------|--------------------|------------|--------------------|
| S. No.              | Allocation | GOI share released | Allocation | GOI share released | Allocation | GOI share released |
| 1 Andhra Pradesh    | 14.24      | 10.68              | 11.58      | 0.00               | 14.60      | 14.60              |
| 2 Bihar             | 11.42      | 8.565              | 9.07       | 2.29               | 6.608294   | 0.00               |
| 3 Chhattisgarh      | 7.88       | 5.91               | 5.91       | 0.00               | 5.94       | 5.226              |
| 4 Goa               | 3.66       | 2.745              | 2.15       | 0.00               | 1.55617    | 0.00               |
| 5 Gujarat           | 11.15      | 8.3625             | 8.83       | 0.62               | 8.89       | 8.51               |
| 6 Haryana           | 5.92       | 4.44               | 4.16       | 4.16               | 12.00      | 12.00              |
| 7 Himachal Pradesh  | 5.09       | 3.8175             | 3.42       | 0.00               | 3.43       | 1.69               |
| 8 Jammu and Kashmir | 9.00       | 6.75               | 6.91       | 0.00               | 5.03041    | 0.7474             |
| 9 Jharkhand         | 7.09       | 5.3175             | 5.20       | 0.00               | 3.785474   | 1.5318             |
| 10 Karnataka        | 11.11      | 8.3325             | 8.79       | 8.225              | 8.84       | 8.84               |
| 11 Kerala           | 6.23       | 4.6725             | 4.44       | 2.22               | 3.228148   | 0.3613             |
| 12 Madhya Pradesh   | 14.27      | 10.7025            | 11.61      | 0.00               | 11.69      | 7.89               |
| 13 Maharashtra      | 16.51      | 12.3825            | 13.61      | 3.53               | 13.71      | 13.71              |
| 14 Orissa           | 9.24       | 6.93               | 7.12       | 0.00               | 7.16       | 5.8                |
| 15 Punjab           | 6.16       | 4.62               | 4.37       | 0.00               | 4.39       | 1.94               |
| 16 Rajasthan        | 14.77      | 11.0775            | 12.06      | 0                  | 12.15      | 11.82              |
| 17 Tamil Nadu       | 10.40      | 7.80               | 8.16       | 0.00               | 5.942398   | 0.4405             |
| 18 Telangana        | 0.00       | 0.00               | 0.00       | 0.00               | 4.88       | 2.39               |
| 19 Uttar Pradesh    | 20.03      | 15.0225            | 16.75      | 0.00               | 12.21051   | 5.51               |
| 20 Uttarakhand      | 5.23       | 3.9225             | 3.54       | 0.00               | 2.56949    | 0.994              |
| 21 West Bengal      | 10.60      | 10.82              | 8.33       | 3.945              | 8.39       | 5.58               |
| Total               | 200.00     | 152.87             | 156.00     | 24.99              | 157.00089  | 109.611            |

## (b) North Eastern States:

(Rs. in Crore)

| S. No.   | State             | 2012-13    | 2012-13            | 2013-14    | 2013-14            | 2014-15    | 2014-15            |
|----------|-------------------|------------|--------------------|------------|--------------------|------------|--------------------|
| S. No.   | State             | Allocation | GOI share released | Allocation | GOI share released | Allocation | GOI share released |
| 1.       | Arunachal Pradesh | 4.20       | 3.15               | 2.70       | 1.35               | 2.35       | 0.5150             |
| 2.       | Assam             | 5.47       | 4.1025             | 3.97       | 0.00               | 2.98       | 2.35               |
| 3.       | Manipur           | 3.79       | 2.8425             | 2.29       | 0.00               | 2.14       | 3.8406             |
| 4.       | Meghalaya         | 3.80       | 2.85               | 2.30       | 1.15               | 2.15       | 0.8208             |
| 5.       | Mizoram           | 3.71       | 2.7825             | 2.21       | 1.105              | 2.11       | 0.00               |
| 6.       | Nagaland          | 3.71       | 2.7825             | 2.21       | 0.00               | 2.11       | 6.11               |
| 7.       | Sikkim            | 3.58       | 3.06               | 2.08       | 0.00               | 2.04       | 0.62               |
| 8.       | Tripura           | 3.74       | 2.805              | 2.24       | 1.12               | 2.12       | 0.7392             |
|          | Total             | 32.00      | 24.375             | 20.00      | 4.725              | 18.00      | 14.9956            |

## (c) UTs:

| S. No.   | UTs                         | 2012-13     | 2012-13            | 2013-14     | 2013-14            | 2014-15     | 2014-15            | 2015-16     | 2015-16            |
|----------|-----------------------------|-------------|--------------------|-------------|--------------------|-------------|--------------------|-------------|--------------------|
|          |                             | Allocat ion | GOI share released | Allocati on | GOI share released | Allocati on | GOI share released | Allocatio n | GOI share released |
| 1.       | Andaman and Nicobar Islands | 2.64        | 1.98               | 1.77        | 0.00               | 1.41        | 0.705              | 2.24        | 1.12               |
| 2.       | Chandigarh*                 | 2.28        | 0.00               | 1.06        | 0.00               | 0.00        | 0.00               | 0.00        | 0.00               |
| 3.       | Dadra and Nagar Haveli*     | 2.28        | 0.00               | 1.06        | 0.00               | 0.00        | 0.00               | 0.00        | 0.00               |
| 4.       | Daman and Diu*              | 2.26        | 0.00               | 1.02        | 0.00               | 0.00        | 0.00               | 0.00        | 0.00               |
| 5.       | Delhi                       | 2.73        | 2.0475             | 1.97        | 0.00               | 1.53        | 0.00               | 2.58        | 0.00               |
| 6.       | Lakshadweep                 | 2.25        | 1.6875             | 1.01        | 0.00               | 1.00        | 0.00               | 1.01        | 0.00               |
| 7.       | Pondicherry                 | 2.30        | 1.725              | 1.11        | 0.00               | 1.06        | 0.00               | 1.17        | 0.9742             |
| Total    | Total                       | 16.74       | 7.44               | 9.00        | 0.00               | 5.00        | 0.705              | 7.00        | 2.0942             |

(Rs. in Crore)