Lok Sabha Question No. 1363 (UNSTARRED), answered on 2018-12-18
Subject: NBFCs for FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: RAKSHA NIKHIL KHADSE, C. MAHENDRAN, KIRIT SOMAIYA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1363

ANSWERED ON 18 TH  DECEMBER, 2018

## NBFCs FOR FPI

## 1363.  SHRIMATI RAKSHATAI KHADSE: SHRI C. MAHENDRAN: DR. KIRIT SOMAIYA:

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

- (a) whether the Government proposes to set up a non-banking financial company (NBFC) with  Rs.  2,000  crore  to  fund  food  processing  industries  as  a  boost  in  this  sector  and double farmer's income and if so, the details thereof;
- (b) whether  this  would  be  a  Government  institution  or  a  private  company  with  some Government shareholding and if so, the details thereof;
- (c) whether the rate of interest to be charged by the company will be lower than prevailing bank interest rates and if so, the details thereof and the time by which all formalities will be over and the company will be functional;
- (d) whether  the  Government  also  proposes  to  provide  subsidy  for  setting  up  of  mini  food parks near agriculture cluster and if so, the details thereof;
- (e) whether the Government is of the opinion that food processing sector is 'golden sector' and if so, the details thereof; and
- (f) whether  India  has  the  potential  to  become  world  food  factory  and  if  so,  the  details thereof?

## ANSWER

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

(a) to (c): In pursuance to the Budget announcement for financial year 2018-19, this ministry has drafted a new Central Sector Scheme to promote establishment of 'Specialized Agro Processing Financial  Institutions'  as  a  Non-Banking  Finance  Company  (NBFC)  with  20  %  equity  of Government of India subject to a maximum of Rs 400 crore. The approval process for the same is under way.

(d): Ministry  is  implementing  scheme  for  Creation  of  Infrastructure  for  Agro  Processing Clusters under the PRADHAN MANTRI KISAN SAMPADA YOJANA to incentivize the setting up of 100 agro processing clusters in the country.

The scheme aims at development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach. These clusters will help in reducing the wastage of the surplus produce and add value to the horticultural / agricultural produce which will result in increase of income of the farmers and create employment at the local level.

TheSchemeenvisagesgrants-in-aid@  35%  of  eligible  project  cost  in  general  areas  and @50%  of  eligible  project  cost  in  the  North  East  States  including  Sikkim  and  difficult  areas namely  Himalayan  States  (i.e.  Himachal  Pradesh,  Jammu  &  Kashmir  and  Uttarakhand),  State notified ITDP areas & Islands subject to max. ofRs. 10.00 crore per project.Till date, 32 AgroProcessing Clusters has been approved in the country under the scheme.

(e) & (f):  There is a vast scope for growth of food processing industries in the country as India has huge diversified production base.

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