(a) whether the Government propose 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 markets; and
(b) if so, the details of incentives proposed to the
private enterprises in this regard?
THE MINISTER OF STATE OF THE MINISTRY OF FOOD PROCESSING INDUSTRIES (SHRI SUBODH KANT SAHAI)
(a) & (b): Financial assistance is provided for
establishment, modernization and expansion of food
processing units @ 25% and 33.33% of costs of plant and
machinery and technical civil works subject to a maximum of
Rs. 50 lakhs and Rs. 75 lakhs in general and difficult areas
respectively. In order to give boost to growth of food
processing industries, the Government has announced on 8th
July, 2004 in Parliament to allow under Income Tax Act, a
deduction of 100% of profit 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.