Lok Sabha Question No. 1948 (UNSTARRED), answered on 2020-03-03
Subject: FPIs in AP
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Margani Bharat

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 1948

ANSWERED ON 03 RD  MARCH, 2020

## FPIs IN AP

## 1948.  SHRI MARGANI BHARAT:

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

- (a) whether  it  is  true  that  nearly  200  food  processing  units  have  come  up  in  Andhra Pradesh (AP) in the last two years attracting an investment of Rs.4,000 crore;
- (b) whether Andhra Pradesh is fast emerging as food processing hub in the country;
- (c) if  so,  the  steps  taken  by  the  Ministry,  APEDA and MPEDA to further promote food processing sector in Andhra Pradesh;
- (d) whether major performers in the State are East and West Godavari districts;
- (e) if  so,  the  special  emphasis  being  given  by  the  Ministry  to  these  districts  in  food processing sector and also for promoting for the setting up of food parks; and
- (f) the manner in which the Ministry is helping entrepreneurs to get collateral-free loan for setting up of food parks in Andhra Pradesh?

## ANSWER

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

(a)  &  (b):  As  per  the  latest  available  Annual  Survey  of  Industries  estimates,  the  number  of registered Food Processing unit/factories operating in Andhra Pradesh has increased from 4572 in 2014-15 to 4702 in 2016-17. The net addition to investment in fixed capital in 2016-17 over 2014-15 is Rs.3601 crores. In 2016-17, Andhra Pradesh has the highest number of registered food processing units/factories accounting for about 15% of the total such units/factories in the country.

(c) to (e): For overall growth and development of food processing industries by ensuring robust modern infrastructure along the entire value/supply chain of food processing, the Ministry of Food Processing Industries (MoFPI) has been implementing Central Sector Umbrella SchemePRADHAN SAMPADA MANTRI KISAN YOJANA (PMKSY) with an allocation of Rs.6000 crore for the period up to 2019-20 co-terminus with 14th Finance Commission Cycle. PMKSY has eight components viz; (i) Mega Food Parks, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Infrastructure for Agro-processing Clusters, (iv) Creation of Backward and Forward Linkages (v) Creation / Expansion of Food Processing & Preservation Capacities, (vi) Food Safety and Quality Assurance Infrastructure and (vii) Human Resources and Institutions and (viii) Operation Greens. These schemes are demand-driven and implemented all across the country  including  in  the  State  of  Andhra  Pradesh  and  the  East  and  West  Godabari  districts under  it  without  any  special  treatment  to  any  State  or  area.  Under  the  schemes  financial assistance in the form grants-in-aid is provided to farmers, entrepreneurs, organizations such as Central and State PSUs /Joint Ventures /Farmer Producer Organizations (FPOs) /NGOs / Cooperatives / SHGs / Public and Private Companies etc. to set up food processing industries/projects/units. Financial assistance is provided to the eligible applicant as per the Scheme guidelines and against the Expression of Interest issued by the  Ministry  from  time  to  time.  The  MoFPI  has  approved  27  food  processing  projects/units with a total grants-in-aid of Rs. 347.93 crore in Andhra Pradesh as under:

& Preservation Capacities

| Scheme Number of                                   | Scheme Number of                                   |   Project Approved |   Total Grants-in- aid Approved (Rs. In Crore) |
|----------------------------------------------------|----------------------------------------------------|--------------------|------------------------------------------------|
| Mega                                               | Food Parks                                         |                  3 |                                         150    |
| Integrated Infrastructure                          | Cold Chain and Value Addition                      |                 15 |                                         130.63 |
| Creation / Expansion of Food Processing Capacities | Creation / Expansion of Food Processing Capacities |                  2 |                                           8.48 |
| Infrastructure for Agro-processing Clusters        | Infrastructure for Agro-processing Clusters        |                  3 |                                          23.74 |
| Creation of Backward and Forward Linkages          | Creation of Backward and Forward Linkages          |                  1 |                                           4.5  |
| Food                                               | Testing Laboratories                               |                  2 |                                           8.77 |
| Operation Green                                    | Operation Green                                    |                  1 |                                          48.81 |

Of  the  27  projects  approved  in  Andhra  Pradesh,  9  belong  to  the  East  and  West  Godavari districts the details of which are at Annexure .

Also, Agricultural and Processed Food  Products Export Development  Authority ( APEDA )  and  Marine  Products  Development  and  Export  Authority  (MPEDA)  under  the Ministry of Commerce & Industry, provide financial assistance to the exporters in the country including the exporters in the State of Andhra Pradesh for the promotion and development of APEDA  and  MPEDA  scheduled  products  both  fresh  and  processed  for  their  exports.  The schemes of APEDA and MPEDA are also implemented on all India basis. Of the 90 processing plants registered with MPEDA, 27 processing plants belong to West Godavari and 12 belong to East Godavari.

(f): The Ministry does not have any scheme for collateral-free loan for setting up of food parks  in  the  country  including  the  State  of  Andhra  Pradesh.  The  Government  has  set  up  a special  food  processing  fund  of  Rs.2000  crore  with  National  Bank  for  Agriculture  and  Rural Development (NABARD) for affordable credit to Mega Food Parks (MFPs), Agro-processing Clusters (APCs) and other Designated Food Parks (DFPs) and food processing units set up in these Parks.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PARTS  (C)  TO  (E)  OF  LOK  SABHA  UNSTARRED QUESTION NO.1948 FOR ANSWER ON 03 RD  MARCH, 2020  REGARDING 'FPIs IN AP'.

Details of Project Approved in the East & West Godavari Districts State of Andhra Pradesh under various Scheme Components of PMKSY (as on 29.02.2020)

## 1. Mega Food Park Scheme

(Rs. in Crore)

|   Sl. No | Project Name                                     |   Project Cost |   Grant Approved |   Grant Released |   Total Expenditure | Status      |
|----------|--------------------------------------------------|----------------|------------------|------------------|---------------------|-------------|
|        1 | Godavari Mega Aqua Park Pvt. Ltd., West Godavari |          122.6 |               50 |            44.53 |              130.77 | Operational |

## 2. Integrated Cold Chain and Value Addition Infrastructure Scheme

(Rs.in Crore)

|   Sl. No. | Project                                     | Sector           |   Project Cost |   Grant Approved |   Grant Released | Status    |
|-----------|---------------------------------------------|------------------|----------------|------------------|------------------|-----------|
|         1 | Nekkanti Sea Food Ltd., East Godavari       | Seafood          |          48.32 |            10    |            10    | Completed |
|         2 | Devi Aqua Tech Pvt. Ltd., East Godavari     | Fishery          |          63.7  |            10    |            10    | Completed |
|         3 | Sandhya Marines Ltd., West Godavari         | Fishery          |          13.43 |             4.22 |             4.22 | Completed |
|         4 | Mourya Aquex Pvt. Ltd. West Godavari        | Marine           |          44.54 |             9.83 |             2.46 | Ongoing   |
|         5 | Sandhya Aqua ExportsPvt. Ltd. East Godavari | Marine           |          55.04 |            10    |             0    | Ongoing   |
|         6 | Apex frozen Foods Ltd. East Godavari        | Marine           |          48.73 |            10    |             0    | Ongoing   |
|         7 | Three seasons Exim Limited, East Godavari   | Marine & Fishery |          86    |            10    |             2.5  | Ongoing   |
|         8 | N K Marine Exports LLP, West Godavari       | Marine           |          52.5  |            10    |             2.5  | Ongoing   |

## 3. Infrastructure for Agro Processing Clusters

(Rs. In crore)

|   Sl. No. | Name of the Project Execution Agency (PEA)            | Location of the                                                                   |   Project |   Project cost |   Grant approved Grant Released | Status   |
|-----------|-------------------------------------------------------|-----------------------------------------------------------------------------------|-----------|----------------|---------------------------------|----------|
|         1 | M/s Association of Lady Entrepreneurs of India (ALEI) | Balabhadrapuram Village, Bikkavolu Mandal, East Godavari District, Andhra Pradesh |     24.93 |         6.6132 |                               0 | Ongoing  |