Lok Sabha Question No. 359 (UNSTARRED), answered on 2019-02-05
Subject: Foreign Investment in FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: PARASURAMAN K.

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 359

ANSWERED ON 05 TH  FEBRUARY, 2019

## FOREIGN INVESTMENT IN FPI

## 359. SHRI K. PARASURAMAN:

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

- (a) whether  the  Government  has  invited  foreign  investment  for  the  development  of  Food Processing industries across the country;
- (b) if so, the details thereof;
- (c) whether  the  Government  has  also  initiated  programme  for  setting  up  of  medium processing units with the financial assistance of the Union Government; and
- (d) if  so,  the details thereof and the total number of units have been established during the last three years, State/UT-wise?

## ANSWER

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

(a)  &  (b):  Government  has  allowed  100%  Foreign  Direct  Investment  (FDI)  in  the  food processing sector through automatic route subject to applicable laws/sectoral rules/regulations/security  conditions.  Also,  100%  FDI  with  Government  approval  for  retail trading, including through e-commerce, has been allowed for food products manufactured and/or produced in India.

(c) & (d):      The Ministry of Food Processing Industries (MoFPI) is implementing a Central Sector Scheme for Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for setting up/expansion of food processing units in the country. Under the scheme, grants-in-aid @ 35% of the eligible project cost is provided in General Areas and 50% of the eligible project cost in North Eastern States including Sikkim and Difficult areas including Himalayan States  (Himachal Pradesh, J&K  &  Uttarakhand), State  notified Integrated Tribal Development  Project  (ITDP)  areas  and  Islands  subject  to  a  maximum  of  Rs.5.00  crore.  The  units assisted  are  mostly  of  medium  size  keeping  in  view  the  quantum of investment in  the  plant  and machinery.    The  State-wise  total  147  number  of  units  approved  for  financial  assistance  since launching of the scheme in 2017-18 is at Annexure .

*****

ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PART (c) AND (d) OF LOK SABHA UNSTARRED QUESTION  NO.  359  FOR  ANSWERED  ON  05 TH   FEBRUARY,  2019  REGARDING  FOREIGN INVESTMENT IN FPI

Statement  Referred  to  in  Reply  to  Parts  (c)&(d)  of  the  Lok  Sabha  Unstarred  Question  No.359 answered on 05.02.2019 Regarding Foreign Investment in FPI

State-wise Approved Projects for Food Processing Units under Scheme for Creation/Expansion of Food Processing & Preservation Capacities as on 31.01.2019

| Sl.No.   | Name of the State   |   Number of Units |
|----------|---------------------|-------------------|
| 1        | Assam               |                 2 |
| 2        | Chhattisgarh        |                 2 |
| 3        | Gujarat             |                11 |
| 4        | Haryana             |                10 |
| 5        | Himachal Pradesh    |                 8 |
| 6        | Jammu &Kashmir      |                11 |
| 7        | Karnataka           |                 8 |
| 8        | Kerala              |                 4 |
| 9        | Madhya Pradesh      |                 6 |
| 10       | Maharashtra         |                19 |
| 11       | Manipur             |                 1 |
| 12       | Mehgalaya           |                 1 |
| 13       | Mizoram             |                 1 |
| 14       | Nagaland            |                 4 |
| 15       | Odisha              |                 2 |
| 16       | Punjab              |                 4 |
| 17       | Rajasthan           |                 7 |
| 18       | Tamil Nadu          |                17 |
| 19       | Tripura             |                 1 |
| 20       | Uttar Pradesh       |                20 |
| 21       | Uttarakhand         |                 5 |
| 22       | West Bengal         |                 3 |
| Total    | Total               |               147 |