(a): whether a large number of multinational companies have entered in the business of agro-based industries;
(b): if so, the details thereof;
(c): whether the domestic agro-based industries have been adversely affected due to the entry of multinational companies; and
(d): if so, the details thereof alongwith steps taken/proposed to be taken by the Government in this regard?
MINISTER OF SMALL SCALE INDUSTRIES & AGRO AND RURAL INDUSTRIES (SHRI MAHABIR PRASAD)
(a)to(d): A statement is placed on the Table of the Sabha.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA
STARRED QUESTION NO. 296 TO BE ANSWERED ON 13.12.2005
(a)&(b): Under the Foreign Direct Investment (FDI) policy of the
Government, some multinational companies have set up agro-based
industries. These include companies like Nestle, Pepsi, Heinz,
Kellogs, etc.
(c)&(d): The entry of these companies has led to increase in
competitiveness and investment and improvement in product quality.
Government implements the following schemes for the promotion and
modernisation of the food processing industries in the country:
(i) Financial assistance for establishment, expansion and
modernisation of food processing units.
(ii) Grants for creation of infrastructure like water supply,
power, effluent treatment plant, laboratory, etc.
(iii) Scheme for quality assurance in units.
(iv) Deduction of hundred per cent of profit for five years under
the Income Tax Act for select new food processing industries.
(v) Waiver of central excise duty on processed fruits and vegetable products.
Similarly, for promotion and establishment of agro-based and
other village industries, Government implements the following schemes :
(i) Rural Employment Generation Programme (REGP) for employment
generation through the setting up of village industries.
(ii) Rural Industries Service Centre (RISC) Scheme for setting up
of common facility centres (CFCs) to provide infrastructural
support and services to such industries.
(iii) Product Development, Design Intervention and Packaging
(PRODIP) Scheme for improved design and packaging of village
industry products.
(iv) Financial assistance to village industry units for
participation in national and international level exhibitions for
market development.