THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI SUBODH KANT SAHAI)
(a) to (e): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PART (a) TO (e) OF LOK SABHA STARRED QUESTION NO.363 FOR
ANSWER ON 19-08-2010 REGARDING FPI.
(a) & (b): Yes, Sir. Food Processing Industries play a pivotal role in generating employment
and providing value addition of agricultural commodities including poultry, meat, dairy and
fisheries. Food processing has significant potential for employment generation not only
directly but across the supply chain in production of raw materials, storage of produce and
finished products and distribution of food products.
The employment intensity in the organized sector is 18 direct and 64 indirect per
Rs. 1.00 crore of investment. In unorganized sector, the employment intensity is estimated
to be approximately 100 direct per Rs. 1.00 crore of investment.
(c): Ministry of Food Processing Industries extends financial assistance in the form of
grant-in-aid to entrepreneurs @ 25% of the cost of Plant & machinery and Technical Civil Works
subject to a maximum of Rs. 50 lakhs in general areas or 33.33% subject to a maximum of Rs. 75
lakhs in difficult areas under the Scheme of Technology Upgradation/ Establishment/ Modernization
of food processing industries.
Prior to 01-04-2007, 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 eligible grant as well as disbursement of grants has been completely decentralized,
through Banks/Financial Institutions.
Under the new procedure, an entrepreneur can file application with the neighbourhood Bank
branch/Financial Intuition (FI). The Bank/FI would then appraise the application and calculate the
eligible grant amount as per the detailed guideline issued by the Ministry. The Banks / FIs
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. The details of the proposals received
from entrepreneurs of various States and approved by the Government under the scheme during last
three years, year-wise and State-wise are enclosed at Annexure-I.
(d): The proposals are considered within the budgetary allocation for the scheme from year to
year basis and accordingly the timeframe for clearance of the pending proposals will depend upon
the availability of funds.
(e): The financial assistance under the Scheme is provided to the entrepreneurs directly.
