Lok Sabha Question No. 5003 (UNSTARRED), answered on 2019-07-23
Subject: Assessment Regarding PMKSY
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Hemant Patil

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 5003

ANSWERED ON 23 RD  JULY, 2019

## ASSESSMENT REGARDING PMKSY

## 5003.  SHRI HEMANT SRIRAM PATIL:

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

- (a) whether  the  Government  has  conducted  any assessment regarding  works  and performance of PMKSY during the last three years and if so, the details thereof;
- (b) whether the Government has developed a central monitoring system to implement its schemes properly and if so, the details thereof;
- (c) the  steps  taken/being  taken  by  the  Government  for  better  development  of  food processing industry in the country; and
- (d) the details of the percentage of agriculture budget spent on food processing during each of the last three years since 2014, State-wise?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

(a): The  Ministry  of  Food  Processing  Industries  is  closely  monitoring  the  financial  and physical  progresses  of  the  constituent  component  schemes  of  the  PMKSY  for  optimum utilization of funds allocated under PMKSY and creation of different infrastructural/logistic/processing/preservation  facilities  to  be  created  under the  Scheme  for promotion of food processing industries.  However, no assessment has since been made on the impact of PMKSY as the implementation period of PMKSY is 2016-20.

(b): The Ministry has developed an electronic platform in tune with India's Digital India programme to make all processes related to submission of proposals under various schemes and release of grants-in-aid simple, easy and transparent through Scheme Management System. The  system  facilitates  online  submission  of  application,  document  uploading  and  its  status tracking on real time basis.  At any stage when the status of proposal gets changed, the system generates automated email alerts and forwards it to concerned stakeholder's email account.  The system also provides facilities for queries and reports for monitoring and decision making.  The application is hosted on Government of India Cloud Servers to provide fast access of information to stakeholders on 24X7 basis.  There is, thus, hardly any human interface in the whole processes of submission of application and release in grants-in-aid to beneficiaries of the Schemes of PMKSY. Further, the Ministry has created a Dashboard to review Ministry's schemes  through  their  key  performance  indicators  namely  number  of  ongoing  projects, pendency at different levels, delays at various levels, and the like.  The dashboard provides ata-glance  views  of  key  performance  indicators  of  all  the  schemes  included  in  the  scope  of Scheme Management System.

- (c): In addition to implementation of various Central Sector Schemes under PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY) for overall promotion and development of  food  processing  sector  in  the  country  and  to   attract  investment  create  employment opportunities in the sector, Government has taken a number of policy initiatives/measures/steps  to  attract  investment  in  the  sector  to  generate  employment  like permitting 100% FDI through automatic route in manufacturing of food products and 100% FDI under Government approval route for trading, including through ecommerce, in respect of food products produced and/or manufactured in India, Creation of a special fund of ₹ 2000 crores  in  National  Bank  for  Agriculture  and  Rural  Development  (NABARD)  to  provide affordable credit to food processing industries, classification of food & agro-based processing units and cold chain infrastructure as agricultural activity for Priority Sector Lending (PSL), lower Goods & Services Tax (GST) rates for majority of food products, 100% exemption of income tax on profit for new food processing units, 100 percent income tax exemption from profit derived by FPOs having annual turnover up to Rs.100 crore for activities such as postharvest value addition to agriculture,  100% deduction of expenditure incurred on investment on establishment and operation of cold chain/warehousing facility for storage of agricultural produce,  concessional  import  duty  for  plant  and  machinery  under  project  imports  benefit scheme, import duty exemption on import of raw material under advance authorization scheme.

(d): The Ministry of Food Processing Industries has separate budget of its own.   A total allocation of Rs.2192.73 crore has been made for food processing during 2016-17 to 201819.  The year-wise allocation of funds and expenditure is as follows:

|         |   Allocation |   ( ₹ in Crore) |
|---------|--------------|-----------------|
| 2016-17 |       688.56 |          677.16 |
| 2017-18 |       633.84 |          605.58 |
| 2018-19 |       870.33 |          591.38 |

*****