Lok Sabha Question No. 79 (STARRED), answered on 2016-03-01
Subject: National Mission on Food Processing
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: RODMAL NAGAR, DUSHYANT CHAUTALA

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## STARRED QUESTION NO. *79 ANSWERED ON 1 ST  MARCH, 2016

## NATIONAL MISSION ON FOOD PROCESSING

- *79. Shri NAGAR RODMAL: SHRI DUSHYANT CHAUTALA:

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

- (a) whether the Government had launched a Centrally Sponsored Scheme of National Mission on  Food  Processing  (NMFP)  for  the  promotion  of  food  processing  sector  through  the  State Governments;
- (b) if so, the details of the salient features thereof;
- (c) whether  financial  assistance  has  been  provided  to  the  small  and  medium  entrepreneurs interested to set up food processing units in the country;
- (d) if so, the details thereof and the number of entrepreneurs provided assistance and the number of food processing projects approved during the current Five Year Plan, year-wise and State-wise; and
- (e) whether NMFP has not achieved its goal due to inadequate flow of funds and lack of focus on skill development in the food processing sector and if so, the details thereof and the steps taken by the Government to achieve the goals of NMFP successfully?

## ANSWER

THE MINISTER OF FOOD PROCESSING INDUSTRIES (SMT. HARSIMRAT KAUR BADAL)

- (a) to (e):  A Statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED  QUESTION  NO.  79  FOR  ANSWER  ON  1 ST   MARCH,  2016  REGARDING NATIONAL MISSION ON FOOD PROCESSING.

(a) Yes,  Madam.  Ministry  of  Food  Processing  Industries  (MoFPI)  had  launched  a  Centrally Sponsored  Scheme  -  National  Mission  on  Food  Processing  (CSS-NMFP)  through  State  /  UT Governments during 12 th Five  Year  Plan  (2012-17)  w.e.f. 01.04.2012  to promote  food processing sector through the States and UTs Governments.

However, in the Union Budget (2015-16) presented on 28.02.2015, Government of India (GoI) announced delinking of the scheme from GoI support w.e.f 01.04.2015. State Governments have the option to continue, or not, the CSS-NMFP scheme out of their increased resources resulting from the recommendations of the 14 th Finance Commission. However, GoI is providing financial support to Union Territories (UTs) for implementation of the scheme.

(b) The salient features of the scheme were as follows:

- I. CSS-NMFP was implemented with funding pattern of  75:25  (Govt.  of  India  :  States), 90:10 (Govt. of India : North Eastern States);
- II. All  the  Union  Territories  (UTs)  were  funded  by  Government  of  India  on  100%  grant basis;
- III. All the State / UT Governments had been empowered under the Mission to receive the applications, sanction and release grant-in-aid to the eligible beneficiaries.
- IV. State  Level  Empowered  Committee  (SLEC)  was  responsible  for  selection  of  projects, administration, implementation and monitoring of CSS-NMFP.
- V. The schemes  under CSS-NMFP  were  -  Scheme  for  Technology  Up-gradation  / Establishment / Modernisation of Food Processing  Industries, Scheme  for Cold Chain, Value Addition and Preservation Infrastructure for Non Horticultural Products, Scheme for  setting  up  /  modernisation  /  expansion  of  Abattoirs,  Scheme  for  Human  Resource Development (HRD) which had subcomponents of (a) Creation of Infrastructure facilities for  running  Degree/Diploma/Certificate  Courses  in  Food  Processing  Technology.  (b) Entrepreneurship  Development  Program  (EDP).  (c)  Food  Processing  Training  Centre (FPTC)  and  (d)  Training  at  recognised  Institutes  and  sensitization  cum  awareness programme, Scheme for Promotional Activities, Scheme for Creating Primary Processing Centers  /  Collection  Centers  in  Rural  Areas  and  Scheme  for  Modernisation  of  Meat Shops and Scheme for Reefer Vehicles.

(c) Yes, Madam. The Scheme of Technology Upgradation / Establishment / Modernization of Food  Processing  Industries  under  CSS-NMFP  was  primarily  aimed  at  providing  assistance  to  the entrepreneurs including small and medium entrepreneurs.

(d) A  year-wise  and  State-wise  statement  indicating  the  projects  assisted  for  food  processing units  by  State  /  UT  Governments  under  the  CSS-NMFP  Scheme  for  Technology  Up-gradation  / Establishment / Modernisation of Food Processing Industries during its period of operation as a CSS scheme  i.e  2012-15  is  at Annexure-I. As  per  scheme  guidelines,  Government/Public  Sector Undertakings/Joint Ventures/Non-Government Organisations/Cooperatives/Self-Help Groups/Private  Sector/Individuals  engaged  in  establishment/upgradation/modernisation  of  food processing units were eligible for financial assistance under the Scheme.

(e) CSS-NMFP  was  launched  in  12 th Plan  and  the  States  had  started  receiving  considerable response from various sectors of food processing. During the period of its implementation i.e. from 2012 to 2015, GoI share of Rs. 339.72 crores was released to the States/ UTs. Of this, Rs. 17.49 crores was released by the States/ UTs for skill development under Scheme for Human Resources Development. In view of increased devolution of funds to the States based on recommendations of 14 th Finance  Commission,  CSS-NMFP  was  de-linked  from  GoI  support  three  years  after  its inception. To achieve the goals of CSS-NMFP, State Governments have been advised to decide on its continuation out of their increased State resources.

Annexure

## ANNEXURE REFERRED TO IN REPLY TO PART (d) OF THE LOK SABHA STARRED QUESTION NO. *79 FOR ANSWER ON 1 ST MARCH, 2016 REGARDING NATIONAL MISSION ON FOOD PROCESSING

( Year-wise and State-wise statement indicating the projects assisted for food processing units by  State / UT  Governments under the CSS-NMFP Scheme for Technology  Up-gradation /  Establishment / Modernisation  of Food  Processing  Industries during its  period  of  operation  as  a  CSS scheme i.e 2012-15)

(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 Sanctio ned | Amount Released | No. of Sanctioned Projects | Amount Sanctioned | Amount Release d | No. of Sanctioned Projects | Amount Sanctioned | Amount Released |
| 1       | ANDAMANAND 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       | CHHATTISGARH               | 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       | DAMANAND 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               |

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

| Sl. No.   | State Name     | 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 Sanction ed | Amount Released | No. of Sanctioned Projects | Amount Sanctioned | Amount Release d | No. of Sanctioned Projects | Amount Sanctioned | Amount Released |
| 20        | MADHYA PRADESH | 20                         | 6.26               | 5.83            | 23                         | 8.56              | 7.96             | 0                          | 0                 | 0               |
| 21        | MAHARASHTRA    | 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                          | 0.50              | 0.50            |
| 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                          | 1.00              | 0.20            |
| 31        | TAMIL NADU     | 5                          | 1.75               | 0.87            | 0                          | 0                 | 0                | 0                          | 0                 | 0               |
| 32        | TELANGANA      | 3                          | 1.00               | 0.25            | 0                          | 0                 | 0                | 0                          | 0                 | 0               |
| 33        | TRIPURA        | 1                          | 0.75               | 0.75            | 1                          | 0.99              | 0.99             | 1                          | 1.00              | 0.50            |
| 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           |