THE MINISTER OF STATE OF THE MINISTRY OF FOOD PROCESSING INDUSTRIES(SHRI SUBODH KANT SAHAI)
(a) to (f): The Government does not set up food processing
units on its own for production or sale of processed food
items. However, in order to promote food processing
industries, Plan schemes have already been formulated to
provide financial assistance for establishment and
modernization of food processing units, creation of
infrastructure, support for Research & Development, human
resource development besides other promotional measures to
encourage development of food processing industries in the
country. Processed food is normally retailed in packaged form
including in can form. The rate of assistance for
establishment /modernization of food processing units is 25% of
the project cost of plant & machinery and technical civil works
subject to a maximum of Rs. 50 lakh in general areas and 33.33%
of the project cost subject to a maximum of Rs. 75 lakh in
difficult areas. An amount of Rs. 180 crore has been allocated
in BE 2005-06 for expenditure under various schemes including
the scheme for technology upgradation/establishment/expansion
of food processing industries. Hundred percent FDI is already
permitted in food processing sector except in food retailing,
plantation and alcoholic beverages.