Question : Financial Crisis in Food Processing Projects

(a) whether food processing entrepreneurs in several States are facing acute financial crisis due to shifting of National Mission on Food Processing to the States and if so, the details thereof;

(b) the number of projects sanctioned under the National Mission on Food Processing throughout the country as on 31st March, 2015 and the amount of funds sanctioned by the Union Government for these projects alongwith the amount of fund allocation made by the State Governments in their budget for the said scheme during the last three years, year and State-wise;

(c) the number of food processing projects in operation after the shifting of the scheme to the States including the number of projects discontinued and the number of projects which have not taken off, State-wise;

(d) whether the Government has received memoranda on the issue from various States and entrepreneurs and if so, the details thereof; and

(e) the steps being taken by the Government for redressal of the problems / grievances of the financially affected entrepreneurs so that food processing units do not get closed?

THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SADHVI NIRANJAN JYOTI)

(a): The Ministry has launched a Centrally Sponsored Scheme (CSS) - National Mission on Food Processing (NMFP) w.e.f. 01.04.2012 which was implemented through States / UTs Govt. However, NMFP has been de-linked from Central Govt. support w.e.f. 01.04.2015 in view of increased resource devolution to states as per the recommendations of 14th Finance Commission. Accordingly, the State Govts. have been requested to take a decision regarding continuation of NMFP.
In addition, Ministry of Food Processing Industries is providing grants to Food Processing entrepreneurs under different categories under Pradhan mantra Kisan SAMPADA Yojana launched in May, 2017.

(b) & (c): National Mission on Food Processing (NMFP) was a Centrally Sponsored Scheme (CSS) wherein Ministry of Food Processing Industries used to place funds at the disposal of respective State Governments. State Level Empowered Committee (SLEC) chaired by Chief Secretary of the State had been vested with all the powers of approving / sanctioning of the applications received under NMFP. Details of the funds allocated and released state-wise / UT-wise as central share under NMFP in the year 2012-13, 2013-14 and 2014-15 are at Annexure-I.

(d) & (e): Representations in respect of delinking of NMFP from Central Government Support
are received by the Ministry of Food Processing. In this regard, Ministry of Food Processing Industries had requested Ministry of Finance to allocate committed liabilities of Central Government Share under CSS-NMFP as State Governments are claiming the liabilities and that applicant under the scheme are largely small entrepreneurs. The Ministry of Finance is of the view that the scheme has been delinked from Central Government as a consequence of higher devolution of funds to states.

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