Lok Sabha Question No. 306 (UNSTARRED), answered on 2017-07-18
Subject: Food Processing Units in Jammu and Kashmir
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: JUGAL KISHORE SHARMA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION No. 306 ANSWERED ON-18 TH  JULY, 2017

## FOOD PROCESSING UNITS IN JAMMU AND KASHMIR

## 306. SHRI JUGAL KISHORE :

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

- (a)   whether the Government has worked out any action plan for promoting and processing of the dry fruits and fruits in Jammu and Kashmir;
- (b) if so, the details thereof;
- (c) Whether  the  Government  proposes  to  provide  any subsidy for setting  up  food processing units for dry fruits and fruits; and
- (d) if so, the details thereof?

## ANSWER

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

(a) to (b): For promoting and processing of agricultural and horticultural produce including the  dry  fruits  and  fruits  in  all  States  in  the  country,  the    Ministry  of  Food  Processing Industries had implemented a Scheme namely Scheme for Technology Upgradation/Establishment/Modernization of Food Processing Industries.  The said scheme is,  however, now delinked from Government of India's assistance w.e.f. 01.04.2015 except UTs.  The said scheme for UT Governments also got delinked from Government of India's assistance w.e.f. 2016-17 onwards.

Under this scheme, the Ministry had provided financial assistance in the form of grants-in-aid to entrepreneurs for setting up, technology upgradation and modernization of food processing industries, which also included industries involved in processing of dry fruits and fruits in all States/UTs including Jammu and Kashmir.

The quantum of financial assistance admissible under the scheme was at the rate of 25% of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 50 lakhs in case of General areas and for difficult areas including Jammu & Kashmir, the same was at rate of 33.33% of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 75 lakhs.

As  a  part  of  the  Committed/Spillover  liabilities  of  11 th Plan  period,  Ministry  of  Food Processing Industries has been releasing grant-in-aid during the 12 th Plan period and now also to  the  eligible  industries  under  the  Scheme  for  Technology  Upgradation/Establishment /Modernization of Food Processing Industries, which include industries involved in processing of dry fruits and fruits.

The  details  regarding  food  processing  units,  including  units  involved  in  processing  of  dry fruits and fruits, assisted in Jammu and Kashmir under Fruit & Vegetable Sector of the said scheme during last two years, are shown below:

| 2015-16                 | 2015-16         | 2016-17                 | 2016-17         |
|-------------------------|-----------------|-------------------------|-----------------|
| No. of cases sanctioned | Amount (in Cr.) | No. of cases sanctioned | Amount (in Cr.) |
| 2                       | 0.53            | 2                       | 0.82            |

(c) to (d):  The  Government of India  has approved a new Central Sector Scheme namely  KISAN  SAMPADA  YOJANA  (KSY)  for  the  period  2016-20  coterminous  with  the  14 th Finance  Commission  cycle  to  be  implemented  by  Ministry  of  Food  Processing  Industries. Under KSY, a new Scheme is for Creation/Expansion of Food Processing and Preservation Capacities (CEFPPC).  This scheme envisages release of financial assistance in the  form of grants-in-aid to food processing units, which include the units involved in processing of dry fruits  and  fruits  under  Fruit  and  Vegetable  Processing  Sector.    The  quantum  of  assistance eligible under this scheme is 35% of the eligible project cost subject to a maximum of Rs. 5 Crore  in  case  of  General  Areas.    In  case  of  North  Eastern  States  including  Sikkim  and difficult areas including Himalayan States (Himachal Pradesh, J&K and Uttarakhand), State Notified  ITDP  areas  and  islands,  the  said  financial  assistance  is  upto  50%  of  the  eligible project cost subject to a maximum of Rs. 5 Crores.

The  organizations  eligible  for  financial  assistance  under  this  scheme  include  Central  and State PSUs/Joint Ventures/Farmers Producers Organizations (FPOs)/N GOs/Cooperatives/SHG's/Public and Private  Companies/Limited Liability Partnerships, corporate entity/ proprietorship firms/Partnership firms.

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