Lok Sabha Question No. 4421 (UNSTARRED), answered on 2021-03-23
Subject: Setting up of Food Processing Industries
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Umesh G. Jadhav

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 4421

ANSWERED ON 23 RD  MARCH, 2021

## SETTING UP OF FOOD PROCESSING INDUSTRIES

## 4421.  DR. UMESH G. JADHAV:

Will the Minister of Food Processing Industries be pleased to state:

- (a) whether any steps are being taken to promote setting up of food processing industries at locations other than mega food park locations;
- (b) if so, the details thereof; and
- (c) the  proposal  for  providing  capital  subsidy  to  food  processing  industries  at  locations other than mega food park locations?

## ANSWER

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

- (a)  &  (b):  The  Ministry  of  Food  Processing  industries  (MoFPI)    is  implementing  a  Central Sector umbrella scheme- Pradhan Mantri Kisan Sampada Yojana (PMKSY) with 8 component schemes for overall growth and development of food processing sector with an outlay of Rs. 6000 Crore for the period 2016-17 to 2019-20.  The period has since been extended to FY 202021.

Under  the  component  schemes  of  PMKSY,  MoFPI  provides  mostly  credit  linked financial assistance (capital subsidy) in the form of grants-in-aid to entrepreneurs for setting up of food processing / preservation industries. There is no restriction for projects to be located inside Mega Food Parks in the component schemes of PMKSY, except  in the scheme 'Creation /Expansion of Food Processing & Preservation Capacities (CEFPPC)'. However, the project proposals, having 100% stake from SC/ST promoter(s) and having eligible project cost of Rs. 1 crore or more, are also considered for approval under CEFPPC scheme irrespective of their locations in the country.

- (c): Financial  assistance  provided  in  the  form  of  Grant-in-Aid  for  setting  up  of  food processing  industries  varies  under  the  different  components  of  the  scheme.  The  details  are placed at Annexure .

*****

## ANNEXUR REFERRED TO IN PART (c) OF REPLY TO THE  LOK SABHA UNSTARRED QUESTION NO. 4421 FOR ANSWER ON 23 RD  MARCH, 2021 REGARDING 'SETTING UP OF FOOD PROCESSING INDUSTRIES'

## Grants for setting up of Food Processing Industries under component schemes of PMKSY

| S.No.   | Component Scheme                                              | Criterion of Grant                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Criterion of Grant                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| S.No.   | Component Scheme                                              | General Area                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | SC/ST/NER and Difficult areas.                                                                                                                                                                                                                                               |
| 1.      | Mega Food Parks                                               | Grant-in-aid @ 50% in general area, and [Subject to maximum of Rs.50.00 crores per project] @75% of eligible project cost in Region and Difficult Areas. [Subject to maximum of                                                                                                                                                                                                                                                                                                                               | NE Rs.50.00                                                                                                                                                                                                                                                                  |
| 2.      | Cold Chain and Value Addition Infrastructure                  | Grant-in-aid for storage infrastructure such as ripening chamber, pack houses, pre- cooling units @35% for general area Grant-in-aid for value addition & processing infra including frozen storage @50% for general area . Grant-in-aid for irradiation facilities @50% for general area. such as pre-cooling States. processing storage Region.                                                                                                                                                             | crores per project] Grant-in-aid for storage infrastructure ripening chamber, pack houses, units @50% for NE/HS Grant-in-aid for value addition & infra including frozen @75% for NE/HS States. Grant-in-aid for irradiation facilities @75%ofeligible project cost in NE/HS |
| 3.      | Creation/Expansion of FoodProcessing& Preservation Capacities | Grant-in-aid @35% of cost of Plant &Machinery and technical civil works in General Area [subject to maximum of Rs.5.00 crores per project] Grants-in-aid @50% of eligible cost in the North East States Sikkim and difficult areas ITDP areas, Islands and SC/ST subject to max. of Rs. 5.00                                                                                                                                                                                                                  | project including State notified entrepreneurs crore per project. Technical civil works                                                                                                                                                                                      |
| 4.      | Infrastructure for Agro-processing Clusters                   | Grant-in-aid @35% of eligible project cost in General Area [Subject to maximum of Rs.10.00 crores per project]                                                                                                                                                                                                                                                                                                                                                                                                | Grants-in-aid @50% of eligible project cost in the North East States including Sikkim and difficult areas State notified ITDP areas, Islands and SC/ST entrepreneurs subject to max. of Rs. 10.00 crore per project. Technical civil works                                   |
| 5.      | Creation of Backward and Forward Linkages                     | Grant-in-aid @35% of eligible project cost in General area [Subject to maximum of Rs.5.00 crores per project]                                                                                                                                                                                                                                                                                                                                                                                                 | Grant-in-aid @50% of eligible project cost in NE/HS States respectively. [Subject to maximumof Rs.5.00 crs per project]                                                                                                                                                      |
| 6.      | Food Safety and Quality Assurance Infrastructure              | Set up/Up-gradation of Quality Control /Food Testing Laboratories- Grant in aid of 100% for Central/ State Govt. organizations; 70% for Other implementing agencies. HACCP/ISO Standards/Food Safety/Quality Management SystemsGrant in aid of @50% [maximum of Rs.17L/22L] States                                                                                                                                                                                                                            | @75% of eligible project cost in general area and NE/HS                                                                                                                                                                                                                      |
| 7.      | Operation Greens                                              | Grants-in-aid @50% of eligible project cost subject to max. of Rs. 50.00 crore per project for Long term infrastructure creation component and subsidy @50% of cost of transportation and/or storage of notified F&V for short term price stabilization measures. Grants-in-aid 70% for FPO/SC/ST eligible project cost subject to Rs. 50.00 crore per project for term infrastructure component and subsidy@50%of of transportation and/or storage notified F&V for short term price stabilization measures. | of max. of Long creation cost of                                                                                                                                                                                                                                             |