Press Information Bureau
Government of India
Ministry of Food Processing Industries
22-November-2010 16:33 IST
Financial Assistance to States
The Ministry of Food Processing Industries (FPI) extends financial assistance in the form of grant-in-aid to implementing agencies/entrepreneurs @ 25% of the cost of plant and machinery and technical civil works subject to a maximum of Rs.50 lakh in general areas and 33.33% subject to a maximum of Rs.75 lakhs in difficult areas under the Scheme of Technology Upgradation / Establishment / Modernisation of food processing industries.

Setting up of food processing industries results in value addition hence, the farmers are benefited. Apart from above, in the 11th Plan, the Ministry has approved new scheme to establish 30 Mega Food Parks with a view to provide state-of-the-art infrastructure for food processing sector in the country on a pre-identified cluster basis with a strong backward and forward linkage and to provide value addition of agricultural commodities including poultry, meat, dairy, fisheries etc. in a demand driven manner. Financial assistance up to 50% of project cost excluding land component in general areas and 75% in difficult areas, subject to a maximum of Rs.50 crore is provided for setting up of Mega Food Parks.

To encourage setting up of cold chain facilities and backward linkages in the country, MFPI has a plan scheme for cold chain, value addition and preservation infrastructure during the 11th Plan to provide financial assistance to project proposals received from public/private organisations for cold chain infrastructure development. The scheme envisages financial assistance in the form of grant-in-aid @ 75% for North Eastern Region and difficult areas subject to a maximum of Rs.,10.00 crore. For the benefit of farmers in the food processing sector, no separate data regarding financial assistance provided by the MFPI is centrally maintained.

This information was given by Shri Subodh Kant Sahai, Minister of Food Processing Industries, in the Lok Sabha today in a written reply.