(a) whether the Government proposes to attract private entrepreneurs to make food processing industry commercially and economically viable by processing and canning the fruits for domestic as well as international market;
(b) if so, the details of incentives proposed to the private
enterprises in this regard; and
(c) the details of the centres identified for setting up of
processing and canning the fruits in the country during 2006-07 and
2007-08 so far, State-wise?
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI SUBODH KANT SAHAI)
(a) & (b): The Ministry of Food Processing Industries (MFPI) has
been implementing various schemes to attract private entrepreneurs
for setting up of new food processing industry including canning of
fruits and vegetables. For promotion of fruits and vegetables
processing industries, financial assistance is provided by Ministry
of Food Processing Industries in the form of grant under the scheme
of Technology Upgradation/ Modernisation / Establishment of food
processing industries for setting up of new unit or for expansion /
modernisation of existing fruits & vegetables processing unit
including canning unit. Under this Scheme, MFPI extends financial
assistance to food processing units in the form of grant-in-aid @
25% of the cost of Plant and Machinery and Technical Civil Works
subject to maximum of Rs. 50.00 lakhs in general areas or 33.33%
subject to maximum of Rs. 75.00 lakhs in difficult areas. In order
to ensure speedy disbursement of the financial assistance, the
Ministry has decided to decentralize the disbursement procedure
through banks under the Scheme of setting up / modernization /
expansion of food processing industries w.e.f. 01.04.07. Now the
applicants will be able to avail of grant / assistance through the
neighbourhood banks which have already appraised the project and
provided loans to them.
Government has already exempted fruits & vegetable products
from payment of excise duty. The Government has allowed, a
deduction of 100% of profit under Income Tax Act, for five years
and 25% of profits for the next five years in case of new agro
processing industries set up to process, preserve and package
fruits and vegetables.
(c): The Ministry of Food Processing Industries schemes are project
oriented. Any proposal, which is financially viable and technically
feasible for setting up / expansion / modernization of food
processing unit including canning of fruits, is eligible for
availing grant from Ministry of Food Processing Industries. Grants
released for fruits & vegetables processing units state-wise during
2006-07 and 2007-08 (upto 27/11/07) is enclosed (Annexure).