Lok Sabha Question No. 2697 (UNSTARRED), answered on 2015-12-15
Subject: Employment in FPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: NISHIKANT  DUBEY, MAHEISH GIRRI, PRALHAD VENKATESH JOSHI, R. PARTHIPAN, RAJAN BABURAO  VICHARE

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2697

ANSWERED ON 15 TH  DECEMBER, 2015

## EMPLOYMENT IN FPI

2697 . SHRI NISHIKANT DUBEY: SHRI MAHEISH GIRRI: SHRI PRALHAD JOSHI: SHRI R. PARTHIPAN:

SHRI RAJAN VICHARE:

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

- (a)   whether there is immense  employment  opportunity in  the Food  Processing  Industry (FPI) in the country and if so , the details  thereof;
- (b)   whether the Government has carried out any study to identify the manpower required to cater to the increasing demand in the food processing sector and if so, the details and the outcome  thereof;
- (c)   the details of job-oriented training  programmes and centres in the country for capacity  building and skill development  for operation of food processing  industries and Mega Food Parks (MFPs) in the  country  and  the  number  of  persons  who  got  training    for the  purpose  during  each  of  the  last three years  and the current year, State wise;
- (d)  the details of  incentives provided to food processing entrepreneurs for setting up of FPIs and MFPs  and  strengthening  existing capacity of food processing units during the said period; and
- (e)    whether  the  Government  has  evolved  a  strategy  to  improve  infrastructure  and  coordination between the Center and the States for expansion of food processing industries in the country and if so, the details thereof?

## ANSWER

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

- (a):   As per the latest Annual Survey of Industries (ASI) for 2012-13, the total number of persons engaged  in  registered  Food  Processing  Sector  is  16.89  lakhs.  Unregistered  food  processing  sector supports employment to 47.89 lakhs workers as per the National Sample Survey Office (NSSO) 67 th Round, 2010-11.
- (b):   This Ministry has not carried out any such studies to identify the manpower required to cater to the  increasing  demand  in  the  food  processing  sector.    However,  as  per  the  study  conducted  by KPMG  for  National  Skill  Development  Corporation  (NSDC)  on  'Human  Resource  and  Skill Requirements  in  the  Food  Processing  Sector  (2013-17,  2017-22)',  the  projected  human  resource requirement in Food Processing Sector is 11.38 million persons.  Food processing sector is having a

major potential for employment generation and is one of the top sectors in respect of requirement of human resources.

(c):    (i)  Ministry  of  Food  Processing  Industries  has  been  implementing  the  Human  Resources Development  Scheme.  This  scheme  aims  at  augmenting  the  supply  of  trained  manpower  and personnel at all  levels  such  as  entrepreneurs,  managers  and  skilled  workers.  During  the  12 th Plan, this  scheme  has  been  subsumed  in  the  newly  launched  Centrally  Sponsored  Scheme-  National Mission on Food Processing (NMFP)  w.e.f 01.04.2012. Accordingly, all the States/  UT Governments  have  been  empowered  to  receive  new  applications  and  sanction  as  well  as  release funds under the above scheme of the mission during 12 th Plan. Ministry does not maintain the data of trained  manpower,  however  the  details  of  Food  Processing  Training  Centres  (FPTCs)  which  also provided hands on training to the participants sanctioned by the Ministry as per committed liabilities of 11 th plan and FPTCs sanctioned under NMFP during 12 th Plan, State-wise, during each of the last three years and the current year is enclosed at Annexure-I.

(ii)  Presently,  the  Ministry  does  not  operate  any  specific  scheme  for  skill  development. However,  there are  two  academic-cum-research  Institutions viz. National Institute  of  Food Technology  Entrepreneurship  and  Management  (NIFTEM)  at  Kundli,  Sonepat,  Haryana  and  the Indian  Institute  of  Crop  Processing  Technology  (IICPT)  at  Thanjavur,  Tamil  Nadu,  which  offer academic  programmes  at  Bachelor's,  Master's  and  Ph.D.  in  food  processing.  These  institutes  are also  conducting  short-term  training  in  food  processing  at  NIFTEM,  IICPT,  Thanjavur  and  its Regional Centre at Guwahati. The details are enclosed at Annexure-II.

(iii)  The  Ministry  of  Skill  Development  &  Entrepreneurship  has  recently  launched  the scheme of Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to provide outcome based skill training in various sectors including food processing in which the Ministry of Food Processing Industries is associating  along  with  the  concerned  Sector  Skill  Council  i.e  Food  Industry  Capacity  &  Skill Initiative (FICSI) under FICCI. The details of Training Centres state wise and trainees assessed till 30.11.15 are enclosed at Annexure-III.

(iv)  Under  Mega  Food  Park,  some  of  the  Mega  Food  Parks  in  their  Central  Processing Centres (CPCs) have made provisions for job-oriented training programmes and centres for capacity building and skill development  for operation of Food  Processing  Industries.  However,  on completion, each Mega Food Park is expected to generate employment to 6000 farmers/ producers directly and 25000-30000 farmers indirectly.

(d):    The  various  major  incentives  being  provided  by  the  Ministry  under  different  schemes  is  as follows:-

(i) Scheme of National Mission on Food Processing (NMFP) -  In  order  to  enhance  the existing / installed capacities of food processing industries (FPIs) in the country, Ministry of Food Processing Industries has been implementing the Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) in 12 th Plan (2012-17) through State/UT Governments. The Scheme of Technology Up gradation / Establishment / Modernization of Food Processing Industries was being implemented  under  NMFP.  Under  the  above  scheme  of  the  Mission,  all  the  eligible  Small  and Medium entrepreneurs interested to set up food processing units are provided financial assistance as follows:-

General areas, 25 %of the cost of Plant & Machinery and Technical Civil Works subject to maximum of Rs. 50 lakhs.

Difficult  areas  (i.e.  Jammu  &  Kashmir,  Himachal  Pradesh,  Uttarakhand,  Andaman  & Nicobar Islands and Lakshadweep) and Integrated Tribal Development Project (ITDP) areas, 33.33 %of the  cost of  Plant  &  Machinery  and  Technical  Civil  Works  subject  to  a  maximum  of  Rs.  75 lakhs.

For  North-Eastern  States  including  Sikkim,  50  %of  the  cost  of  Plant  &  Machinery  and Technical Civil Works subject to a maximum of Rs.100 lakhs.

The applications for the above scheme of the Mission are received, sanctioned and funds are released by the respective State/UT Governments, for setting up of Food Processing Units.

In  the  Union  Budget  (2015-16)  presented  on  28.02.2015,  Government  of  India  (GoI)  has announced the de-linking of NMFP  from  support  from Central Govt. Accordingly, State Governments  may  decide  to  continue  (or  not)  NMFP  scheme  out  of  their  increased  resources resulting from the recommendation of the 14 th Finance Commission.

Statement indicating the state-wise details of proposals sanctioned and grants-in-aid released to food processing units under the scheme of Technology Up-gradation/Modernization/ Establishment  of  FPI  of  Centrally  Sponsored  Scheme  -  National  Mission  on  Food  Processing (NMFP) during 2012-13, 2013-14 and 2014-15 of 12 th Five Year Plan to improve the infrastructure in Food Processing Sector is at Annexure-IV

.

(ii) Scheme of Cold Chain, Value Addition and Preservation Infrastructure - In order to reduce wastage of  horticulture  &  non-horticulture  produce and providing  integrated and complete cold chain and preservation infrastructure facilities from the farm gate to the consumer or from the production  site  to  the  market,  Ministry  of  Food  Processing  Industries  is  implementing  a  Central Sector Scheme of Cold Chain, Value Addition and Preservation Infrastructure since 2008-09. The scheme is primarily private sector driven wherein  financial assistance  @ 50% of the total cost of plant & machinery and technical civil works in general areas and 75% for NE region and difficult areas  (North  Eastern  states,  Sikkim,  J&K,  Himachal  Pradesh  and  Uttarakhand)  subject  to  a maximum  grant-in-aid  of  Rs  10  Crore  per  project  is  provided  for  setting  up  the  cold  chain infrastructure in the country. Integrated cold chain and preservation infrastructure can be set up by individuals,  groups  of  entrepreneurs,  cooperative  societies,  Self  Help  Groups  (SHGs),  Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc. Ministry  has approved 138  Cold Chain projects in the country to reduce the cold chain gap.

Further,  National  Horticulture  Mission  (NHM),  National  Horticulture  Board  (NHB),  and National Cooperative Development  Corporation (NCDC)  under  Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture & Farmers Welfare and Agricultural and Processed Food Products Export Development Authority (APEDA) under Department of Commerce,  Ministry  of  Commerce  and  Industries,  Government  of  India  are  also  providing assistance  for  setting  up  cold  storages  under  their  respective  schemes.    State-wise  and  year-wise funds released under the  scheme of Cold  Chain, value addition and Preservation Infrastructure at Annexure-V.

(iii) Mega Food Park Scheme The scheme envisages a capital grant @ 50% of the eligible project cost in general areas and @ 75% of eligible project cost in difficult and hilly areas i.e. North East Region including Sikkim, J&K, Himachal Pradesh, Uttarakhand and ITDP notified areas of the States subject to a maximum of Rs. 50 Crores per project. The status of Implementation of 39 Mega Food Park Projects as on 10.12.2015 is at Annexure-V

- (iv) Various other fiscal incentives for food processing sector provided by the Government is placed at Annexure-VI.
- (e):   (i) To improve the infrastructure in Food Processing Sector the following are under taken by the Ministry,
1. In  order  to  enhance  the  existing  /  installed  capacities  of  food  processing  industries (FPIs)  in the country, Ministry of Food Processing Industries has been implementing the Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) in 12th Plan (2012-17) through State/UT Governments. The Scheme of Technology Up gradation  /  Establishment  /  Modernization  of  Food  Processing  Industries  was  being implemented  under  NMFP.  Under  the  above  scheme  of  the  Mission,  all  the  eligible Small and Medium entrepreneurs interested to set up food processing units are provided financial assistance. However, in the Union Budget (2015-16) presented on 28.02.2015, Government of India (GOI) has announced the de-linking of NMFP from support from Central Govt. Accordingly, State Governments may decide to continue (or not) NMFP scheme out of their increased resources resulting from the recommendation of the 14 th Finance  Commission.  Details  of  state-wise  proposals  sanctioned  and  grants-in-aid released is placed at Annexure-VII.
2. Scheme for Setting up/ Modernization of Abattoirs -  Ministry  of  Food  Processing Industries is implementing the scheme for Setting up/ Modernization of Abattoirs under which  assistance  in  the  form  of  grant-in-aid  is  provided  to  local  bodies  (Municipal Corporations and Panchayats) / Public Sector Undertakings / Co-Operatives / Boards under Government. The Scheme has flexibility for involvement of private investor on PPP basis.

The  scheme  was  transferred  to  the  State  Governments  for  implementation  under  the Centrally  Sponsored  Scheme  of  National  Mission  on  Food  Processing  (NMFP)  with effect from 1.04.2014. Proposals received up to 31.03.2014 are being processed by the Ministry under the Central Sector Scheme. Fresh proposals with effect from 01.04.2014 are to be submitted to State Governments. However, the Centrally Sponsored Scheme of NMFP has been delinked from Central support from BE 2015-16.

Under this scheme grant-in-aid to 40 projects for setting up / modernisation of abattoirs has been approved. Out of these, 5 projects have been completed and grant-in-aid to the tune of Rs. 59.51 Crore has been released for these projects.

3. Scheme of Setting up / up gradation of Food Testing Laboratory - Ministry of Food Processing Industries, under the Scheme for Quality Assurance, Codex Standards and Research &  Development and Other Promotional Activities provides financial assistance  in  the  form  of  grant-in-aid  for  Setting  up  /  Up  gradation  of  Food  Testing Laboratories  so  as  to  ensure  compliance  of  domestic  and  international  standards  on food  in  case  of  domestic  manufacture,  imports  as  well  as  exports,  to  establish  a surveillance system for monitoring the quality and composition of food and to analyse the  samples  received  from  processing  industry  and  other  stakeholders.  This  will ultimately help Food Processing Sector.

Eligible Organisations are Central/State Government and their organizations/ Government  universities  (including  Government  owned  deemed  universities)  and  all other implementing agencies/private sector organizations/universities (including deemed universities).

The implementation of the Food Testing Laboratory (FTL) Scheme has been entrusted to Indian Council of Agricultural Research (ICAR) under the Ministry of Agriculture & Farmer's Welfare, Department of Agricultural Research & Education (DARE) during the 12 th Plan with effect from 01.04.2012.

Under this Scheme, as on 30-11-2015, 42 Food Testing Labs assisted by the Ministry for setting up / up gradation of Food Testing Laboratories have been completed.

- (ii) The State Governments have been asked to constitute a Co-ordination Committee under the chairmanship of District Collector at the District level, where Mega Food Parks are situated, for speedy settlement of the issues which  may  arise  during  the  project implementation.  State Governments  have  also  asked  to  set  up  a  Coordination  Committee  at  State  level.  The  concerned States are represented in the meeting of Technical Committee (TC) and Inter-Ministerial Approval Committee (IMAC) constituted under the scheme for selection of projects.

(iii)  In  case  of  cold  chain  projects  though  the  State  Government  representatives  are  not permanent members of IMAC, they are invited when the projects of respective State are in IMAC agenda.

(iv) The States and NMFP directorates are requested to monitor and inspect randomly the FPI units assisted by the Ministry and under NMFP.

****

## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (c)  OF  LOK  SABHA  UNSTARRED  QUESTION  NO.2697  FOR  15 TH DECEMBER, 2015 REGARDING EMPLOYMENT IN FPI

STATEWISE DETAILS OF COMMITTED LIABILITIES OF 11 th  PLAN OF FOOD PROCESSING TRAINING CENTRES (FPTCs) ASSISTED DURING 12th PLAN and FPTCs ASSISTED UNDER NMFP DURING 12 TH  PLAN

(Figures in lakhs)

| S. No   | Name of the State   | 2012-13        | 2012-13   | 2013-14        | 2013-14   | 2014-15        | 2014-15   | 2015-16 till Nov.'15 (Upto Nov,2014)   | 2015-16 till Nov.'15 (Upto Nov,2014)   |
|---------|---------------------|----------------|-----------|----------------|-----------|----------------|-----------|----------------------------------------|----------------------------------------|
| S. No   | Name of the State   | No. of Units** | Amount*   | No. of Units** | Amount*   | No. of Units** | Amount*   | No. of Units**                         | Amount*                                |
| 1       | Andaman Nicobar     | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 2       | Andhra Pradesh      | 0              | 0         | 0              | 6         | 0              | 0         | 0                                      | 4.00                                   |
| 3       | Arunachal Pradesh   | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 4       | Assam               | 2              | 20.69     | 0              | 1.86      | 0              | 0         | 0                                      | 0                                      |
| 5       | Bihar               | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 6       | Delhi               | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 7       | Gujarat             | 0              | 0         | 1              | 4         | 0              | 0         | 0                                      | 0                                      |
| 8       | Haryana             | 5              | 19.63     | 1              | 4         | 0              | 2.00      | 0                                      | 0                                      |
| 9       | Himachal            | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 100     | J&K                 | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 11      | Karnataka           | 1              | 11        | 1              | 15.96     | 0              | 0         | 0                                      | 0                                      |
| 12      | Jharkhand           | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 12      | Kerala              | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 13      | Maharashtra         | 0              | 4         | 0              | 0         | 0              | 2.67      | 0                                      | 0                                      |
| 14      | Madhya Pradesh      | 5              | 41        | 1              | 4         | 0              | 0         | 0                                      | 2.00                                   |
| 15      | Manipur             | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 16      | Mizoram             | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 17      | Meghalaya           | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 18      | Nagaland            | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 19      | Orissa              | 0              | 0         | 6              | 38        | 0              | 0         | 1                                      | 4.00                                   |
| 20      | Punjab              | 1              | 3         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 21      | Puducherry          | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 22      | Rajasthan           | 0              | 0         | 0              | 0         | 0              | 2.00      | 0                                      | 0                                      |
| 23      | Sikkim              | 0              | 0         | 2              | 10        | 0              | 0         | 0                                      | 0                                      |
| 23      | Tamil Nadu          | 2              | 6         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 24      | Tripura             | 0              | 0         | 0              | 0         | 0              | 0         | 0                                      | 0                                      |
| 26      | West Bengal         | 5              |           | 0              |           | 1              | 3.92      | 0                                      | 1.61                                   |
|         |                     |                | 27        |                | 0         |                |           |                                        |                                        |
| 27      | Uttarakhand         | 0              | 0         | 1              | 3.5       | 0              | 1.96      | 0                                      | 0                                      |
| 28      | Chhattisgarh        | 7              | 28        | 0              | 0         | 0              | 0         | 0                                      | 2.00                                   |
|         | Total:              | 28             | 160.32    | 13             | 87.32     | 1              | 14.55     | 1                                      | 13.61                                  |

## ANNEXURE-II

## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (c)  OF  LOK  SABHA  UNSTARRED QUESTION NO.2697 FOR 15 TH  DECEMBER, 2015 REGARDING EMPLOYMENT IN FPI

| Name of the Institution & Name of the Training Centre   | 2012-2013        | 2012-2013              | 2013-2014        | 2013-2014              | 2014-2015        | 2014-2015              | 2015-2016        | 2015-2016              |
|---------------------------------------------------------|------------------|------------------------|------------------|------------------------|------------------|------------------------|------------------|------------------------|
|                                                         | No. of Trainings | No. of persons Trained | No. of Trainings | No. of persons Trained | No. of Trainings | No. of persons Trained | No. of Trainings | No. of persons Trained |
| NIFTEM                                                  | -                | -                      | 2                | 975                    | 12               | 3753                   | 2                | 507                    |
| IICPT at Thanjavur & Guwahati                           | 201              | 2379                   | 316              | 4873                   | 368              | 4673                   | 249              | 2278                   |

## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (c)  OF  LOK  SABHA  UNSTARRED QUESTION NO.2697 FOR 15 TH  DECEMBER, 2015 REGARDING EMPLOYMENT IN FPI

- I. Name of the Sector Skill Council: - Food Industry Capacity & Skill Initiative (FICSI).
- II. List of Job Roles on which the Training is/ had been conducted is as under;
- a. Craft Baker
- b. Mixing Technician
- c. Baking Technician
- d. Plant Biscuit Production Specialist
- e. Grain Mill Operator
- f. Pickle Making Technician
- g. Butter & Ghee Processing Technician
- h. Ice Cream Processing Technician

## III. List of approved Centers and State wise numbers of Training Centers (TCs) is as under;

| SR. No.   | State            |   Approved TCs No. |
|-----------|------------------|--------------------|
| 1         | Andhra Pradesh   |                  3 |
| 2         | Assam            |                  1 |
| 3         | Bihar            |                 14 |
| 4         | Chandigarh       |                  3 |
| 5         | Chhattisgarh     |                  1 |
| 6         | Delhi            |                  1 |
| 7         | Gujarat          |                  2 |
| 8         | Haryana          |                  2 |
| 9         | Himachal Pradesh |                  6 |
| 10        | Jammu &Kashmir   |                  2 |
| 11        | Jharkhand        |                  1 |
| 12        | Karnataka        |                  3 |
| 13        | Kerala           |                  0 |
| 14        | Madhya Pradesh   |                  5 |
| 15        | Maharashtra      |                  7 |
| 16        | Meghalaya        |                  1 |
| 17        | Odisha           |                  1 |
| 18        | Puducherry       |                  1 |
| 19        | Punjab           |                  2 |
| 20        | Rajasthan        |                  1 |
| 21        | Tamil Nadu       |                 30 |
| 22        | Telengana        |                  7 |
| 23        | Tripura          |                  1 |
| 24        | Uttar Pradesh    |                 22 |
| 25        | Uttarakhand      |                  1 |
| 26        | West Bengal      |                  2 |
|           | Total            |                120 |

## IV. State wise total number of Students assessed till 30 th Niovember,2015 is as under;

| State Wise Students Assessed Till 30 th November, 2015   | State Wise Students Assessed Till 30 th November, 2015   | State Wise Students Assessed Till 30 th November, 2015   |
|----------------------------------------------------------|----------------------------------------------------------|----------------------------------------------------------|
| SR. No.                                                  | State                                                    | No. of Students                                          |
| 1                                                        | Andhra Pradesh                                           | 60                                                       |
| 2                                                        | Assam                                                    | 19                                                       |
| 3                                                        | Bihar                                                    | 777                                                      |
| 4                                                        | Chandigarh                                               | -                                                        |
| 5                                                        | Chhattisgarh                                             | -                                                        |
| 6                                                        | Delhi                                                    | -                                                        |
| 7                                                        | Gujarat                                                  | -                                                        |
| 8                                                        | Haryana                                                  | 87                                                       |
| 9                                                        | Himachal Pradesh                                         | -                                                        |
| 10                                                       | Jammu &Kashmir                                           | 79                                                       |
| 11                                                       | Jharkhand                                                | -                                                        |
| 12                                                       | Karnataka                                                | -                                                        |
| 13                                                       | Kerala                                                   | -                                                        |
| 14                                                       | Madhya Pradesh                                           | 30                                                       |
| 15                                                       | Maharashtra                                              | 142                                                      |
| 16                                                       | Meghalaya                                                | 58                                                       |
| 17                                                       | Odisha                                                   | -                                                        |
| 18                                                       | Puducherry                                               | 90                                                       |
| 19                                                       | Punjab                                                   | -                                                        |
| 20                                                       | Rajasthan                                                | -                                                        |
| 21                                                       | Tamil Nadu                                               | 1678                                                     |
| 22                                                       | Telengana                                                | -                                                        |
| 23                                                       | Tripura                                                  | -                                                        |
| 24                                                       | Uttar Pradesh                                            | 796                                                      |
| 25                                                       | Uttarakhand                                              | -                                                        |
| 26                                                       | West Bengal                                              | -                                                        |

## ANNEXURE-IV

## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (d)  OF  LOK  SABHA  UNSTARRED QUESTION NO.2697 FOR 15 TH  DECEMBER, 2015 REGARDING EMPLOYMENT IN FPI

Statement indicating the state-wise details of proposals sanctioned and grants-in-aid released to food processing units under the scheme of Technology Up-gradation/Modernization/ Establishment of FPI of Centrally Sponsored Scheme - National Mission on Food Processing(NMFP) during 2012-13, 201314 and 2014-15 of 12 th Five Year Plan

(Rs. in crore)

|         |                             | 2012-13                    | 2012-13           | 2012-13         | 2013-14                    | 2013-14           | 2013-14         | 2014-15                    | 2014-15           | 2014-15         |
|---------|-----------------------------|----------------------------|-------------------|-----------------|----------------------------|-------------------|-----------------|----------------------------|-------------------|-----------------|
| Sl. No. | State Name                  | No. of Sanctioned Projects | Amount Sanctioned | Amount Released | No. of Sanctioned Projects | Amount Sanctioned | Amount Released | No. of Sanctioned Projects | Amount Sanctioned | Amount Released |
| 1       | ANDAMAN AND NICOBAR ISLANDS | 3                          | 0.61              | 0.61            | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 2       | ANDHRA PRADESH              | 6                          | 2.38              | 2.38            | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 3       | ARUNACHAL PRADESH           | 7                          | 1.51              | 1.51            | 3                          | 1.00              | 0.81            | 0                          | 0                 | 0               |
| 4       | ASSAM                       | 8                          | 2.61              | 1.76            | 19                         | 1.56              | 0.57            | 4                          | 0.25              | 0               |
| 5       | BIHAR                       | 3                          | 0.58              | 0.13            | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 6       | CHANDIGARH                  | 0                          | 0                 | 0               | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 7       | CHHATTISGAR H               | 2                          | 1.00              | 0.75            | 0                          | 0                 | 0               | 9                          | 3.50              | 2.25            |
| 8       | DADRA AND NAGAR HAVELI      | 0                          | 0                 | 0               | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 9       | DAMAN AND DIU               | 0                          | 0                 | 0               | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 10      | DELHI                       | 0                          | 0                 | 0               | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 11      | GOA                         | 0                          | 0                 | 0               | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 12      | GUJARAT                     | 51                         | 18.56             | 14.09           | 23                         | 8.94              | 3.58            | 1                          | 0.50              | 0               |
| 13      | HARYANA                     | 9                          | 3.87              | 3.72            | 4                          | 1.78              | 1.78            | 9                          | 4.14              | 3.05            |
| 14      | HIMACHAL PRADESH            | 5                          | 1.35              | 0.85            | 12                         | 4.59              | 3.26            | 4                          | 1.35              | 0.62            |
| 15      | JAMMU AND KASHMIR           | 10                         | 4.54              | 3.68            | 4                          | 1.71              | 0.84            | 8                          | 3.10              | 0.60            |
| 16      | JHARKHAND                   | 0                          | 0                 | 0               | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 17      | KARNATAKA                   | 36                         | 13.92             | 13.80           | 14                         | 4.71              | 4.47            | 14                         | 4.48              | 2.24            |
| 18      | KERALA                      | 7                          | 2.59              | 2.52            | 14                         | 5.88              | 4.82            | 2                          | 1.00              | 0.38            |
| 19      | LAKSHADWEEP                 | 0                          | 0                 | 0               | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 20      | MADHYA PRADESH              | 20                         | 6.26              | 5.83            | 23                         | 8.56              | 7.96            | 0                          | 0                 | 0               |
| 21      | MAHARASHTR A                | 58                         | 19.75             | 17.89           | 27                         | 8.29              | 4.14            | 4                          | 1.07              | 0.54            |
| 22      | MANIPUR                     | 37                         | 2.08              | 1.11            | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 23      | MEGHALAYA                   | 3                          | 0.35              | 0.35            | 9                          | 2.24              | 0.52            | 1                          | 0.30              | 0.15            |
| 24      | MIZORAM                     | 2                          | 0.35              | 0.35            | 2                          | 0.40              | 0.15            | 7                          | 1.16              | 0.69            |
| 25      | NAGALAND                    | 7                          | 0.89              | 0.89            | 0                          | 0                 | 0               | 0                          | 0                 | 0               |
| 26      | ODISHA                      | 11                         | 4.50              | 4.35            | 12                         | 4.64              | 4.26            | 9                          | 2.33              | 1.83            |

| 27   | PUDUCHERRY    |   3 |   1.41 |   1.41 |   0 |     0 |     0 |   0 |     0 |     0 |
|------|---------------|-----|--------|--------|-----|-------|-------|-----|-------|-------|
| 28   | PUNJAB        |   3 |   1.27 |   0.99 |   5 |  0.89 |  0.56 |   1 |  0.5  |  0.5  |
| 29   | RAJASTHAN     |   9 |   3.23 |   2.73 |  39 | 14.17 | 14.17 |  31 | 11.91 | 11.91 |
| 30   | SIKKIM        |   0 |   0    |   0    |   0 |  0    |  0    |   1 |  1    |  0.2  |
| 31   | TAMILNADU     |   5 |   1.75 |   0.87 |   0 |  0    |  0    |   0 |  0    |  0    |
| 32   | TELANGANA     |   3 |   1    |   0.25 |   0 |  0    |  0    |   0 |  0    |  0    |
| 33   | TRIPURA       |   1 |   0.75 |   0.75 |   1 |  0.99 |  0.99 |   1 |  1    |  0.5  |
| 34   | UTTAR PRADESH |  39 |  15.13 |  12.71 |   7 |  0.61 |  0    |   0 |  0    |  0    |
| 35   | UTTARAKHAND   |   4 |   1.35 |   0.12 |   1 |  0.75 |  0.75 |   0 |  0    |  0    |
| 36   | WEST BENGAL   |  10 |   3.95 |   3.95 |  36 | 16.26 | 12.71 |  21 |  9.57 |  2.48 |
|      | Total:        | 362 | 117.54 | 100.35 | 255 | 87.97 | 66.34 | 127 | 47.16 | 27.94 |

( Source: Data entered by State / UT Governments in NMFP MIS portal)

Note: Govt. of India has de-linked CSS-NMFP from Central Government support w.e.f. 01.04.2015.

## ANNEXURE-V

## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (d)  OF  LOK  SABHA  UNSTARRED QUESTION NO.2697 FOR 15 TH  DECEMBER, 2015 REGARDING EMPLOYMENT IN FPI

State-wise and year-wise funds released under the scheme of Cold Chain, value addition and Preservation Infrastructure.

(Rs in Crore)

| Name of the state   |   2012-13 |   2013-14 |   2014-15 |   2015-16 (30.11.2015) |
|---------------------|-----------|-----------|-----------|------------------------|
| Andhra Pradesh      |    0      |      0    |     0     |                  4     |
| Arunachal Pradesh   |    0      |      0    |     0     |                  0     |
| Assam               |    0      |      0    |     6.54  |                  0.295 |
| Bihar               |    0      |      0    |     0     |                  0     |
| Chhattisgarh        |    0      |      0    |     0     |                  0     |
| Gujarat             |    6.99   |      3.49 |    12.05  |                  6.44  |
| Haryana             |   21.5906 |     21.69 |    19.35  |                 10.28  |
| Himachal Pradesh    |    2.458  |      6.7  |     6.57  |                 18.02  |
| Jammu &Kashmir      |    0      |      0    |     4.8   |                 16.06  |
| Jharkhand           |    0      |      0    |     0     |                  0     |
| Karnataka           |    1.6812 |      2.08 |     7.38  |                  1.27  |
| Kerala              |    6.7    |     10.85 |     0     |                  0     |
| Madhya Pradesh      |    0      |      2.37 |     5.5   |                  2.37  |
| Maharashtra         |   17.134  |      9.97 |    27.66  |                 34.66  |
| Manipur             |    2.5    |      5    |     2.45  |                  0     |
| Meghalaya           |    0      |      0    |     0     |                  0     |
| Mizoram             |    1.515  |      8    |     2.49  |                  0     |
| Nagaland            |    0      |      0    |     0     |                  0     |
| Odisha              |    0      |      0    |     0.566 |                  0     |
| Punjab              |    4.95   |     13.67 |    10.32  |                 11.67  |
| Rajasthan           |    0      |      0    |     2.02  |                  6.76  |
| Sikkim              |    0      |      0    |     0     |                  0     |
| Tamil Nadu          |    0      |      0    |     0     |                  0     |
| Telangana           |    0      |      0    |     0     |                  0     |
| Tripura             |    0      |      0    |     0     |                  0     |
| Uttar Pradesh       |    4.132  |      6.87 |     7.5   |                 10.69  |
| Uttarakhand         |    1.536  |      2.25 |    37.43  |                 11.45  |
| West Bengal         |    6.67   |      7.26 |     0.433 |                  3.64  |
| Andaman &Nikobar    |    0      |      0    |     0     |                  0     |
| Chandigarh          |    0      |      0    |     0     |                  0     |
| Dadar &Nagar Haveli |    0      |      0    |     0     |                  0     |
| Damn and Diu        |    0      |      0    |     0     |                  0     |
| Lakshadweep         |    0      |      0    |     0     |                  0     |
| Delhi               |    3.2    |      3.38 |     0.244 |                  0.256 |
| Puducherry          |    0      |      0    |     0     |                  0     |
| Total               |   81.0568 |    103.58 |   153.303 |                137.861 |

## ANNEXURE-VI

## ANNEXURE REFERRED IN REPLY TO PART (d) OF LOK SABHA UNSTARRED QUESTION NO.2697 FOR 15 TH  DECEMBER, 2015 REGARDING EMPLOYMENT IN FPI

Status of Implementation of 39 Mega Food Park Projects as on 10.12.2015

|   S. No | Project Name                                                                      | State             | Date of In- principle Approval   | Date of Final Approval   |   Project Cost |   Grant released | Status             |
|---------|-----------------------------------------------------------------------------------|-------------------|----------------------------------|--------------------------|----------------|------------------|--------------------|
|       1 | Andhra Pradesh Industrial Infrastructure Corporation (APIIC), Krishna             | Andhra Pradesh    | 31.03.2015                       | -                        |         152.16 |             0    | In-principle       |
|       2 | Srini Food Park Pvt. Ltd., Chittoor                                               | Andhra Pradesh    | 16.12.2008                       | 27.03.2009               |         121.1  |            49.52 | Operational        |
|       3 | Godavari Mega Aqua Park Pvt. Ltd., West Godavari                                  | Andhra Pradesh    | 21.09.2012                       | 16.12.2013               |         122.6  |             5    | Under Construction |
|       4 | North East Mega Food Park Ltd., Nalbari                                           | Assam             | 16.12.2008                       | 27.03.2009               |          80.85 |            40    | Operational        |
|       5 | Mums Mega Food Park Pvt. Ltd., Buxar                                              | Bihar             | 31.03.2015                       | -                        |         136.98 |             0    | In-principle       |
|       6 | Pristine Mega Food Park Pvt. Ltd., Khagaria                                       | Bihar             | 21.09.2012                       | 06.08.2014               |         127.64 |             5    | Under Construction |
|       7 | JVL Mega food Park Pvt. Ltd., Rohtas                                              | Bihar             | 19.12.2013                       | 10.08.2015               |         114.21 |             0    | Under Construction |
|       8 | Indus Best Mega Food Park Pvt. Ltd., Raipur                                       | Chhattisgarh      | 06.09.2012                       | 04.06.2014               |         124.5  |             0    | Under Construction |
|       9 | Adani Ports and Special Economic Zone Ltd., Kutch                                 | Gujarat           | 31.03.2015                       | -                        |         168.6  |             0    | In-principle       |
|      10 | Gujarat Agro Infrastructure Mega Food Park Pvt. Ltd., Surat                       | Gujarat           | 21.09.2012                       | 22.05.2014               |         117.87 |             5    | Under Construction |
|      11 | Haryana State Industrial& Infrastructure Development Corporation Limited, Sonipat | Haryana           | 31.03.2015                       | 06.11.2015               |         177.59 |             0    | Under Construction |
|      12 | Continental Warehousing Corporation (NhavaSeva) Limited, Panipat                  | Haryana           | 30.11.2015                       | -                        |         157.46 |             0    | In-principle       |
|      13 | Cremica Food Park Pvt. Ltd., Una                                                  | Himachal Pradesh  | 21.09.2012                       | 06.08.2014               |          99.7  |             5    | Under Construction |
|      14 | RFK Greens Food Park Pvt. Ltd., Pulwama                                           | Jammu And Kashmir | 21.09.2012                       | 19.02.2014               |          79.43 |             0    | Under Construction |
|      15 | Jharkhand Mega Food Park Pvt. Ltd., Ranchi                                        | Jharkhand         | 16.12.2008                       | 27.03.2009               |         114.74 |            43.78 | Under Construction |
|      16 | Integrated Food Park Pvt. Ltd., Tumkur                                            | Karnataka         | 03.08.2010                       | 27.03.2011               |         144.33 |            45    | Operational        |
|      17 | Kerala State Industrial Development Corporation Limited (KSIDC), Alappuzha        | Kerala            | 31.03.2015                       | 27.11.2015               |         129.15 |             0    | Under Construction |
|      18 | Kerala Industrial Infrastructure Development Corporation (KINFRA), Palakkad       | Kerala            | 31.03.2015                       | 27.11.2015               |         119.02 |             0    | Under Construction |
|      19 | Avantee Mega Food Park Pvt. Ltd. (formerly RuchiAcroni Industries                 | Madhya Pradesh    | 31.03.2015                       | -                        |         150.37 |             0    | In-principle       |
|      20 | Indus Mega Food Park Pvt. Ltd., Khargoan                                          | Madhya Pradesh    | 10.10.2011                       | 27.08.2012               |         127.7  |            45    | Under Construction |
|      21 | Jain Agro Trading Company Private Limited, Wardha                                 | Maharashtra       | 31.03.2015                       | -                        |          88.73 |             0    | In-principle       |

(Rs. in Crore)

|   22. | VinayTiwari Agro Estates &Farms Pvt. Ltd., Ahmednagar                              | Maharashtra   | 31.03.2015   | -          |   119.08 |   0.00 | In-principle       |
|-------|------------------------------------------------------------------------------------|---------------|--------------|------------|----------|--------|--------------------|
|    23 | Paithan Mega Food Park Ltd., Aurangabad                                            | Maharashtra   | 01.04.2011   | 08.03.2013 |   124.56 |   5    | Under Construction |
|    24 | Satara Mega Food Park Pvt. Ltd., Satara                                            | Maharashtra   | 21.09.2012   | 06.08.2014 |   139.33 |  15    | Under Construction |
|    25 | Zoram Mega Food Park Pvt. Ltd., Aizawl                                             | Mizoram       | 19.12.2013   | 10.06.2015 |    75.2  |   5    | Under Construction |
|    26 | Odisha Industrial Infrastructure Development Corporation (IDCO), Khurda            | Odisha        | 31.03.2015   | 06.11.2015 |   134.13 |   0    | Under Construction |
|    27 | MITS Mega Food Park Ltd., Rayagada                                                 | Odisha        | 29.04.2011   | 16.04.2012 |    80.17 |  15    | Under Construction |
|    28 | Punjab Agro Industries Corporation Ltd., Ludhiana                                  | Punjab        | 31.03.2015   | 27.11.2015 |   117.61 |   0    | Under Construction |
|    29 | The Sukjhit Starch &Chemical Limited, Kapurthala                                   | Punjab        | 31.03.2015   | 06.11.2015 |   123.72 |   0    | Under Construction |
|    30 | International Mega Food Park Ltd. , Fazilka                                        | Punjab        | 03.08.2010   | 25.05.2011 |   130.38 |  45    | Operational        |
|    31 | Greentech Mega Food Park Pvt. Ltd., Ajmer                                          | Rajasthan     | 21.09.2012   | 19.02.2014 |   113.57 |   5    | Under Construction |
|    32 | 3F Industries Ltd., Krishnagiri                                                    | Tamil Nadu    | 31.03.2015   | -          |   127.78 |   0    | In-principle       |
|    33 | Andhra Pradesh Industrial Infrastructure Corporation (Telangana Division), Khammam | Telangana     | 31.03.2015   | -          |   154.42 |   0    | In-principle       |
|    34 | RaagaMayuriAgrovet Pvt. Ltd., Mahboobnagar                                         | Telangana     | 31.03.2015   | -          |   112.05 |   0    | In-principle       |
|    35 | Smart Agro Industries Corporation Pvt. Ltd., Nizamabad                             | Telangana     | 19.12.2013   | 10.06.2015 |   108.95 |   0    | Under Construction |
|    36 | Sikaria Mega Food Park Pvt. Ltd., West Tripura                                     | Tripura       | 29.04.2011   | 30.11.2011 |    87.45 |  20.79 | Under Construction |
|    37 | Patanjali Food &Herbal Park Pvt. Ltd., Haridwar                                    | Uttarakhand   | 16.12.2008   | 27.03.2009 |    95.08 |  50    | Operational        |
|    38 | Himalayan Food Park Pvt. Ltd., Udham Singh Nagar                                   | Uttarakhand   | 21.09.2012   | 23.01.2014 |    99.96 |  15    | Under Construction |
|    39 | Jangipur Bengal Mega Food Park Ltd., Murshidabad                                   | West Bengal   | 16.12.2008   | 16.03.2010 |   132.7  |  45    | Under Construction |

## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (e)  OF  LOK  SABHA  UNSTARRED QUESTION NO.2697 FOR 15 TH  DECEMBER, 2015 REGARDING EMPLOYMENT IN FPI

## Fiscal Incentives for Food Processing Sector

From time to time, Government of India has announced a number of fiscal incentives for promoting investment in food processing sector. The major incentives given by the Government as under:-

## Income Tax: Deduction in Expenditure:

Under Section 35-AD of the Income tax Act 1961, deduction for expenditure incurred on investment is  allowed  if  this  investment  is  wholly  and  exclusively  for  the  purpose  of  any  specified  business (Details  given  below).  However,  this  deduction  is  allowed  only  for  the  investment  made  in  the previous year and prior to commencement of its operations.

-  Businesses allowed 150% deduction (provided the taxpayer has commenced its business on or after 01.04.2012)
-  Setting up and operating a cold chain facility
-  Setting up and operating warehousing facility for storage of agricultural produce

## Business allowed 100% deduction

-  Bee-keeping and production of honey and beeswax
-  Setting up and operating a warehousing facility for storage of sugar
-  For generating more employment, an amendment regarding eligibility threshold of minimum 100 workmen is proposed to be reduced to fifty is made in the provisions of section 80JJAA of the Income-tax act

## Deduction of Tax from profit:

Under  Section  80  IB(11A)  of  the  Income  Tax  Act,  1961,  new  units  (i.e.  not  formed  by splitting up or by way of reconstruction of an existing business) in the business of processing, preservations and packaging of fruits or vegetables, meat & meat product, poultry, marine or dairy products are permitted to claim deduction from Income tax.

This tax incentive is available as 100% tax exemption for the first 5 years' of operation, and after  that,  at  the  rate  of  25%  of  the  profits  being  exempted  from  tax;  30%  in  case  of  a company.  This  benefit  is  available  only  for  ten  years  provided  that  such  business  had commenced on or after 1.04.2001.

If  any  business relating to meat, meat products, poultry,  marine products or dairy products has  started  after  1.4.2009,  the  above  benefits  would  be  available,  but  not  to  the  units operating in such business before 01.04.2009.

## Service Tax

## Negative List:

Under Finance Act, 1994, Service Tax is not leviable on items contained in the Negative List. These services are as follow:

Services including processes carried out at an agricultural farm including tending, pruning, cutting,  harvesting,  drying,  cleaning,  trimming,  sun  drying,  fumigating,  curing,  sorting, grading, cooling or bulk packaging and such like operations which do not alter the essential characteristics of agricultural produce but make it only marketable for the primary market.

## Exempted Category:

Ministry of Finance vides notification dated 20th June 2012 has given exemption of Service Tax for following services:-

-  Construction,  Erection,  Commissioning  or  installation  of  original  works  pertaining  to post-harvest  storage  infrastructure  for  agricultural  produce  including  Cold  storages  for such purposes.
-  Mechanized  Food  grain  handling  system,  machinery  or  equipment  for  units  processing agricultural produce as food stuff excluding alcoholic beverages; and
-  Services of Loading, unloading, packing, storage or warehousing of agricultural produce.
-  Services  of  pre-conditioning,  pre-cooling,  ripening,  waxing,  retail  packing,  labeling  of fruits and vegetables are being exempted.
-  Services by way of transportation by rail or a vessel and by a goods transport agency used for transportation of agricultural produce and food stuff including flours, rice, pulses, tea, coffee,  jaggery,  sugar,  milk,  milk  products,  salt  and  edible  oil,  excluding  alcoholic beverages.

## Customs Duty

Government has extended Project Imports' benefits to the following projects:

-  Projects for the installation of mechanized food grain handling systems and pallet racking systems in 'Mandis' and Warehouses for food grains and sugar;
-  Cold storage, cold room (including  for farm  level pre-cooling) or industrial projects for preservation,  storage  or  processing  of  agricultural,  apiary,  horticultural,  dairy,  poultry, aquatic and marine produce and meat.

Consequently,  all  goods  related  to  Food  Processing,  imported  as  part  of  the  project, irrespective of their tariff  classification,  would  be  entitled  to  uniform  assessment  at concessional basic customs duty.

Customs  duty  on  Hazelnuts  has  been  reduced  from  30%  to  10%.  (Ref.  Notification  No 12/2013-Customs dated 1.3.2013)

-  Customs  Duty  on  De-hulled  Oat  grains  has  been  reduced  from  30%  to  15%.  (Ref. Notification No 12/2013-Customs dated 1.3.2013)

## Central Excise Duty

## Food Products:

In  order  to  promote  food  processing  industry,  the  Government  has  given  concessions  in Central Excise Duty from time to time. Duty structure of some of the processed food items are as under:-

-  Nil  Duty  in  Milk,  Milk  Products  (Chapter  4),  Vegetables  (Chapter  7),  Nuts  and  Fruits, fresh & Dried (Chapter 8).
-  As  against  standard  excise  rate  of  12%,  Processed  Fruits  &  Vegetables  (Chapter  20) carries a merit rate of 2% without CENVAT or 6% with CENVAT.
-  Soya  Milk  Drinks,  Flavoured  Milk  of  Animal  origin  also  carries  a  duty  of  2%  without CENVAT or 6% with CENVAT.

## Food Processing Machineries:

-  All refrigeration machineries and Parts used for installation of cold storage, cold room or refrigerated vehicle,  for the preservation, storage, transport or processing of agricultural, apiary,  horticultural,  dairy,  poultry,  aquatic  and  marine  produce  and  meat  are  exempted from Excise Duty.
-  Pasteuring,  drying,  evaporating,  etc  machinery  used  in  Dairy  sector  is  exempted  from Excise Duty.
-  Excise duty on machinery for the preparation of meat, poultry, fruits, nuts or vegetables and on presses, crushers and  similar  machinery  used  in  the  manufacture  of  wine,  cider, fruit juices or similar beverages and on packing machinery is reduced from 10% to 6%.

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