Lok Sabha Question No. 433 (STARRED), answered on 2019-07-23
Subject: Financial Assistance in FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Annpurna Devi, Giridhari Yadav

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## STARRED QUESTION NO. † *433

ANSWERED ON 23 RD  JULY, 2019

## FINANCIAL ASSISTANCE IN FPI

## †*433. MS. ANNPURNA DEVI: SHRI GIRIDHARI YADAV:

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

- (a) whether the assistance for food processing industries and setting up/ expansion of cold storage is badly delayed due to corruption;
- (b) if so, the reaction of the Government thereto;
- (c) the  proposals  received  for  the  assistance  for  setting  up/expansion  of  food  processing industry/cold storage during the last three years;
- (d) the number of proposals out of these for which assistance has been provided within six months and the details of the assistance provided to them; and
- (e) the number of cases in which the action has been taken after six months during the said period?

## ANSWER

THE MINISTER OF FOOD PROCESSING INDUSTRIES (SMT. HARSIMRAT KAUR BADAL)

- (a) to (e):  A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA STARRED  QUESTION  NO. † *433 ANSWERED  ON  23 RD JULY, 2019 REGARDING FINANCIAL ASSISTANCE IN FPI

(a)&(b): No complaint alleging corruption has been received in respect of assistance for setting up/expansion  of  food  processing  industries  in  the  Ministry  of  Food  Processing  Industries (MoFPI). The release of financial assistance under various schemes of the Ministry is contingent upon  compliance  of  conditions  and  submission  of  documents  by  the  eligible  applicants.  The funds under the schemes are released in more than one installments depending on the physical and financial progress of the projects. The time frame for release of first installment varies from scheme to scheme ranging from six months to eight months from the date of approval of the project.  There  is  hardly  any  human  interface  in  the  submission  of  application  and  document uploading which are done online. The online system has provision of status tracking on real time basis. Moreover, a system of Committee of Independent Monitors (CIM) is working in MoFPI to redress  grievances  of  the  applicants  whose  proposals  are  rejected  on  various  grounds  on deficiencies.

The Ministry of Food Processing Industries (MoFPI) does not set up stand-alone cold storage projects nor assists for their expansion. However, under the scheme of 'Integrated Cold Chain and Value Addition Infrastructure' of Pradhan Mantri Kisan Sampada Yojana (PMKSY) there is component for cold storage facility. No complaints of delay has since been received under cold chain  scheme.  Department  of  Agriculture,  Cooperation  &  Farmers  Welfare  (DAC&FW)  and National  Horticulture  Board  (NHB),  DAC&FW,  assist  for  the  establishment  of  cold  storages. They have informed that they have not received any complaints of delay in sanctioning of cold storage projects.

(c) to (e): A statement indicating scheme-wise number of proposals received in the Ministry of Food Processing Industries for setting up / expansion of food processing industries, the number of proposals approved for assistance along with amount of assistance approved during the last 3 years is at Annexure .

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ANNEXURE REFERRED TO IN REPLY TO PART (c) TO (e) OF LOK SABHA STARRED QUESTION NO. †*433 ANSWERED ON 23RD JULY, 2019 RAISED BY MS.  ANNPURNA  DEVI  AND  SHRI  GIRIDHARI  YADAV,  MPs  REGARDING FINANCIAL ASSISTANCE IN FPI

Details of Project Proposals Received/Approved with amount of assistance approved for Setting Up of Food Processing Industries

| Scheme                                                              |   Number Proposal received during the last 3 years |   of Number Proposals found Ineligible |   of Number of Eligible Proposals approved within six months |   Total Amount of Grant/ Assistance Approved (Rs. in crore) |
|---------------------------------------------------------------------|----------------------------------------------------|----------------------------------------|--------------------------------------------------------------|-------------------------------------------------------------|
| Mega Food Parks                                                     |                                                 69 |                                     55 |                                                           14 |                                                      300    |
| Cold Chain Infrastructure                                           |                                                523 |                                    360 |                                                          163 |                                                     1301.22 |
| Agro-Processing Clusters                                            |                                                161 |                                    122 |                                                           39 |                                                      336.07 |
| Creation / Expansion of Food Processing and Preservation Capacities |                                                792 |                                    612 |                                                          180 |                                                      661.61 |
| Creation of Backward and Forward Linkages                           |                                                191 |                                    127 |                                                           64 |                                                      188.06 |