(a) whether the Government is providing subsidy to the food
processing units in the country;
(b) if so, the details of total subsidies provided during the
last two years State-wise;
(c) the details and numbers of such units applied for subsidy
during the above period but not yet granted subsidies; and
(d) the reasons therefor?
THE MINISTER OF FOOD PROCESSING INDUSTRIES(SHRI SUBODH KANT SAHAI)
(a) to (d) : Yes, Sir. The Ministry of Food Processing Industries
extends financial assistance in the form of grant-in-aid to
implementing agencies/entrepreneurs @ 25% of the cost of Plant &
machinery and Technical Civil Works subject to a maximum of Rs. 50
lakhs in general areas and 33.33% subject to a maximum of Rs. 75
lakhs in difficult areas under the Scheme of Setting
up/Modernization/Expansion of food processing industries.
Earlier all the applications for such grants were received by
the Ministry through the State Nodal Agencies. These applications
were then Centrally processed and grants disbursed directly by the
Ministry. From 2007-08, the receipt of applications, their
appraisal, calculation of grant eligibility as well as disbursement
of funds has been completely decentralized. Under the new procedure,
an entrepreneur/ applicant can file application with the neighborhood
Bank branch/ Financial Intuition (FI). The Bank/ FI would then
appraise the application and calculate the eligible grant amount as
per the detailed guideline given to them by the Ministry. The Banks/
FIs appraisal report and its recommendation for the release of grant
is transmitted to the Ministry through e-portal established for this
purpose. After the recommendation is received from the Bank/ FI, the
Ministry sanctions the grant and transfer the funds through the e-
portal.
Under the decentralized procedure, as the applications are
received directly by the Banks/FIs, the data for receipt of the
applications for 2007-08 and 2008-09 is not maintained centrally by
the Ministry. However, the State-wise details of the number of food
processing units to which financial assistance has been provided is
annexed. The Ministry releases the funds in the shape of grant in aid
to the agencies/ entrepreneurs depending upon the availability of
funds within the budget provision from year to year basis.