(a) whether the Government has invited French companies to
invest to Mega Food Parks and in development of cold chains
in the country:
(b) if so, the details of proposed Mega Food Parks to be
set up in the country, State-wise; and
(c) the
details of the subsidy and other incentives being provided for the
establishment of cold
storage in different States?
THE MINISTER FOR FOOD PROCESSING INDUSTRIES (SHRI SUBODH KANT SAHAI)
(a):Yes, Sir. During my visit to France I had an opportunity to meet
the French Industry Representatives and held discussion with them
regarding business in Food Processing Sector. During the course of
my inter-action, I had invited French companies to invest in India
and also to participate in Mega Food Park Scheme. I had also
proposed that the Industry from France should open their units in
the Mega Food Park Projects in India.
Mega Food Parks are being showcased as an investment destination to
attract Foreign Direct Investment from any country including
companies from France. FDI is under 100 % automatic route for most
of the processed food items. FDI may come for setting up of Cold
Chain and Mega Food Park and/or processing units in the Mega Food
Parks. It intends to bring new technologies, processes and products
as well as O&M support.
(b):In the first phase 10 Mega Food Parks out of total 30 proposed to
be set up during 11th Plan Period are being set up
in the states of Andhra Pradesh, Assam, Jharkhand, Karnataka,
Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh, Uttarakhand and
West Bengal.
(c):To encourage setting up of cold chain facilities and backward
linkages in the country, Ministry of Food Processing Industries
(MFPI) has a Plan Scheme for Cold Chain, Value Addition and
Preservation Infrastructure during the 11th Plan to provide
financial assistance to project proposals received from public /
private organizations for cold chain infrastructure development.
The scheme envisages financial assistance in the form of grant-in-
aid @ 50% of the total cost of plant and machinery and technical
civil works in general areas and 75% for North Eastern Region and
difficult areas subject to a maximum of Rs.10.00 crore. The
initiatives are aimed at filling the gaps in the supply chain,
strengthening of cold chain infrastructure, establishing value
addition with infrastructural facilities like sorting, grading,
packaging and processing for horticulture including organic
produce, marine, dairy, poultry, etc. Other agencies of the
Government like National Horticulture Board (NHB), Agricultural and
Processing Food Products Development Authority (APEDA), National
Cooperative Development Corporation (NCDC) and State Government
also provide assistance for cold storages under their respective
schemes.
In the Union Budget 2010-11, Government has announced to allow
external commercial borrowings for cold storage or cold room
facilities including for farm level pre-cooling for preservation or
storage of agricultural and allied produce, marine products and
meat, as a part of the farm to market initiative and to promote
private sector investment in setting up of cold storages. In
addition, Government has also announced project import status at a
concessional customs duty of 5% with full exemption from service
tax to the initial setting up and expansion of cold storage, cold
room including farm pre-coolers for preservation or storage of
agriculture and related sectors produce and full exemption from
custom duty to refrigeration units required for the manufacture of
refrigerated vans or trucks.