Lok Sabha Question No. 1714 (UNSTARRED), answered on 2024-08-01
Subject: Agro Industrial Corridors in Tamil Nadu
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Thiru Dayanidhi Maran

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO: 1714

ANSWERED ON 01 ST  AUGUST, 2024

## AGRO INDUSTRIAL CORRIDORS IN TAMIL NADU

## 1714.     THIRU DAYANIDHI MARAN :

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

- (a)          the specific financial support proposed by the Union Government provide for the agroindustrial corridor in the Cauvery delta districts and whether there are any additional funds or subsidies available for the development of food parks in Theni, Manapparai, and Tindivanam, if so, the details thereof;
- (b) the manner in which the Union Government would assist in developing the necessary infrastructure for these agro-industrial projects and the role being played by Union agencies in ensuring the timely support for these projects;
- (c)       the initiatives being planned to incorporate advanced technologies in the food processing units  and  the  manner  in  which  the  Government  would  support  research  and  development  to enhance food processing techniques and productivity;
- (d)        the measures proposed to be taken to help MSMEs and small-scale producers to access national and international markets; and
- (e)      whether there are any plans or policies being implemented by the Ministry in collaboration with educational institutions to provide specialized courses in food processing and related fields and if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH)

- (a) The Ministry of Food Processing Industries (MOFPI) has been implementing Mega Food Park Scheme (MFPS), a component scheme under the Pradhan Mantri Kisan Sampada Yojana (PMKSY), to create modern infrastructure for the food processing sector along the value chain from farm to market. The Ministry does not set up Mega Food Parks on its own and rather the scheme  is  demand  driven  wherein  proposals  are  invited  through  Expression  of  Interest  from eligible  entities  as  per  scheme  guidelines.  Under  the  Mega  Food  Park  scheme,  MOFPI  has sanctioned one project to Tamil Nadu State Agricultural Marketing Board (TNSAMB) for setting up of Mega Food Park at Tirunelveli District of Tamil Nadu. Details of the project are at Annexure I .  Further,  a  proposal  from  M/s  State  Industries  Promotion  Corporation  of  Tamil  Nadu  with proposed location at Upparapatti, Theni District had been received during EOI where last date was 10.03.2021, but the same could not be sanctioned due to lower marks scored as per evaluation criteria  of  scheme  guidelines.  There  is  no  proposal  pending  in  the  Ministry  from  Theni, Manapparai and Tindivanam districts of Tamil Nadu for setting up of Mega Food Park project. The scheme has been discontinued by the Government with effect from 01.04.2021 with provision for  committed  liabilities  for  ongoing  projects  only.  Since,  the  scheme  is  discontinued,  hence, setting up of new Mega Food Park cannot be supported anywhere in the country.
- (b)        The Mega Food park scheme is discontinued w.e.f. 01/04/2021. However, Ministry under its ongoing Scheme for Creation of Infrastructure for Agro Processing Clusters (APC Scheme)

which  is  also  a  part  of  umbrella  scheme  of  Pradhan  Mantri  Kisan  Sampada  Yojana,  aims  at development  of  common  infrastructure  such  as  cold  storage,  ripening  chamber,  silos,  IQF, warehouse, internal roads, boundary wall, ETP/  STP,  water supply, etc. to encourage entrepreneurs  to  set  up  food  processing  units  based  on  cluster  approach.  For  setting  up  APC project, at least 10 acres of land (5 acres in urban areas) for the project is required to be arranged by the Project Implementing Agency (PIA) either by purchase or on lease of at least 50 years. Minimum 5 food processing units with aggregate investment of minimum Rs. 25 crore are required to be set up in the approved APC.

Scheme envisages financial assistance @35% of eligible project cost in general areas and @50% of eligible project cost in difficult areas, SC/ST, FPOs and SHGs subject to maximum of Rs.10.00 Crores per project. The scheme is demand driven and applications under the scheme are invited online from potential investors / entrepreneurs against Expression of Interest (EoI) issued by the Ministry from time to time depending on the availability of funds.

As on 30.06.2024, Ministry has approved 76 projects with total project cost of Rs. 2460 Crore involving grants-in-aid of Rs. 658.83 Crore under APC scheme. Out of this 12 projects have been approved in the state of Tamil Nadu, their details are at Annexure II .

(c)      The Ministry is currently implementing Research and Development Scheme which is a part of Human Resource & Institutions Scheme under the umbrella scheme of Pradhan Mantri Kisan Sampada Yojana (PMKSY). The Objective of the scheme is that end product/outcome/findings of R&D work should benefit food processing industry in terms of product and process development, efficient technologies, improved packaging, value addition etc. with commercial value along with standardization  of  various  factors  viz.  additives,  colouring  agents,  preservatives,  pesticide residues,  chemical  contaminants,  microbiological  contaminants  and  naturally  occurring  toxic substances within permissible limits.

Under the scheme, financial assistance is provided to various Universities, IITs, Central/ State Government Institutions, Government funded organizations to promote and undertake demand driven  R&D  work  in  food  processing  sector  for  product  &  process  development,  design  and development of equipment, improved storage, shelf-life, packaging etc.

R&D projects of Government organizations/ Institutions are eligible for 100% grant-in-aid for the cost of equipment, consumables and expenditure related to Research Fellows, etc. whereas Private organizations/universities/institutions/R&D  laboratories  and  CSIR  recognized  R&D  units  in private sector are eligible to the tune of 50% of equipment cost in general areas and 70% in difficult areas.

(d)       Ministry is already providing support to Farmer Producer Organizations (FPOs)/ Self Help Groups  (SHGs)/  Cooperatives  or  SPV  of  micro  food  processing  enterprises  for  developing  a common packaging & branding with provision for quality control, standardization, and adhering to food safety parameters for consumer retail sale under Branding and Marketing component of the  Centrally  Sponsored  Scheme  of  Pradhan  Mantri  Formalisation  of  Micro  Food  Processing Enterprises (PMFME).

Further,  the  Union Cabinet in its meeting on 31.03.2021 approved the Central Sector Scheme-  'Production  Linked  Incentive  Scheme  for  Food  Processing  Industry  (PLISFPI)'  to support  creation  of  global  food  manufacturing  champions  commensurate  with  India's  natural resource endowment and support Indian brands of food products in the international markets. The Scheme is  being  implemented  over  a  six-year  period  from  2021-22  to  2026-27.  The  Scheme Objectives are to support food manufacturing entities with stipulated minimum Sales and willing to  make  minimum  stipulated  investment  for  expansion  of  processing  capacity  and  Branding abroad to incentivize emergence of strong Indian brands.

A component of the Scheme relates to incentivizing production of Innovative/ Organic products of SMEs in four major food products segments, viz. Ready to Cook/ Ready to Eat (RTC/ RTE)

foods  including  Millets  based  products,  Processed  Fruits  &  Vegetables,  Marine  Products  and Mozzarella Cheese, including Free Range - Eggs, Poultry Meat, Egg Products.

Another component of the Scheme relates to providing support to companies for branding and marketing abroad to incentivize emergence of strong Indian brands for in-store Branding, shelf space renting and marketing. The Ministry also took the initiative to encourage the use of Millets in RTC/RTE products and incentive them under the PLI Scheme (PLISMBP) to increase usage of millets in food products and promote value addition and sales.

(e)          MoFPI has already established two Institutes of National Importance i.e. National Institute of  Food  Technology  Entrepreneurship  and  Management  (NIFTEM)  located  each  at  Sonipat (Haryana) and Thanjavur (Tamil Nadu). These Institutes have premier education and research capabilities in food technology and provides services to different segments of the food processing sector, spanning innovation, consultancy, incubation, quality testing, outreach and awareness with excellent national and international networking. NIFTEMs not only provide specialized courses in  food  processing  and  related  fields  but  also  provide  training  to  the  microenterprises  and entrepreneurs in Food domain and offers technical assistance for the StartUps.

*****

## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 1714 FOR REPLY ON 01.08.2024 REGARDING AGRO INDUSTRIAL CORRIDORS IN TAMIL NADU.

## Details of Mega Food Park Projects of Tamil Nadu

| SPV/ IA Name                                  | District    | Date of Final Approval   |   Project Cost (INR in Cr) |   Amount of grant approved (INR in Cr) |   Amount of grant released (INR in Cr) | Status   |
|-----------------------------------------------|-------------|--------------------------|----------------------------|----------------------------------------|----------------------------------------|----------|
| Tamil Nadu State Agricultural Marketing Board | Tirunelveli | 23.06.2021               |                     77.024 |                                  23.64 |                                  12.22 | Ongoing  |

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 1714 FOR REPLY ON 01.08.2024 REGARDING AGRO INDUSTRIAL CORRIDORS IN TAMIL NADU.

## Details of APC projects of Tamil Nadu

| S. No.   | Name of the Project Execution Agency (PEA)   | District                 | Date of approval   |   Project cost (In Cr.) |   Grant Approved (in Cr.) |   Total Grant released (in Cr.) | Status                                                   |
|----------|----------------------------------------------|--------------------------|--------------------|-------------------------|---------------------------|---------------------------------|----------------------------------------------------------|
| 1.       | M/s JFK International                        | Coimbatore               | 01.08.2019         |                 16.71   |                    4.1921 |                         2.8566  | Core processing& Basic enabling infrastructure completed |
| 2.       | M/s P Duraisamy Maharaja Rice Mills Pvt Ltd  | Tirupur                  | 03.10.2019         |                 26.83   |                    8.7682 |                         6.2284  | Ongoing                                                  |
| 3.       | M/s Tiruvannamalai Market Committee          | Tiruvannamalai29.04.2020 |                    |                 25.506  |                    5.7487 |                         1.81084 | Ongoing                                                  |
| 4.       | M/s Salem Market Committee                   | Salem                    | 29.04.2020         |                 25.252  |                    5.9753 |                         1.88222 | Ongoing                                                  |
| 5.       | M/s Theni Market Committee                   | Theni                    | 29.04.2020         |                 26.308  |                    5.9955 |                         1.88858 | Ongoing                                                  |
| 6.       | M/s Dharmapuri Market Committee              | Krishnagiri              | 29.04.2020         |                 26.826  |                    5.8937 |                         1.85651 | Ongoing                                                  |
| 7.       | M/s Madurai Market Committee                 | Madurai                  | 29.04.2020         |                 32.066  |                    5.7912 |                         1.82423 | Ongoing                                                  |
| 8.       | M/s Dindigul Market Committee                | Dindigul                 | 29.04.2020         |                 29.018  |                    6.7357 |                         2.12174 | Ongoing                                                  |
| 9.       | M/s Cuddalore Market Committee               | Cuddalore                | 29.04.2020         |                 25.002  |                    5.9793 |                         1.88348 | Ongoing                                                  |
| 10.      | M/s Delta Foods                              | Pudukkottai              | 08.06.2020         |                 24.3125 |                    7.472  |                         5.25282 | Core processing& Basic enabling infrastructure completed |
| 11.      | M/s Vamsi RS Industrial Zone                 | Erode                    | 17.11.2021         |                 33.167  |                    9.1351 |                         0       | Ongoing                                                  |
| 12.      | M/s Integrated Service Point Pvt. Ltd.       | Thiruvallur              | 28.02.2024         |                 42.635  |                   10      |                         0       | Ongoing                                                  |
|          |                                              |                          | Total              |                333.63   |                   81.68   |                        27.6     |                                                          |