Question : INVESTMENT IN FOOD PROCESSING SECTOR



(a) the details of proposals for investment in the food processing sector during the Eleventh Five Year Plan;

(b) whether the Government has conducted any survey to assess the estimated requirement and availability of food processing facilities in the country;

(c) if so, the details thereof;

(d) the details of proposal received by the Government seeking financial assistance during the last three years, State-wise; and

(e) the details of financial assistance provided by the Government during the last three years and the current year, State-wise?

Answer given by the minister


THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (DR. CHARAN DAS MAHANT)

(a): The Ministry of Food Processing Industries does not maintain the data on investment in Food Processing sector. However, as per the competitiveness report of the National Manufacturing Competitiveness Council there are 25, 367 registered food processing units in the country whose total invested capital is Rs. 84,094 crores.

(b) & (c): Ministry of Food Processing Industries (MFPI) has not conducted any survey in respect of estimated requirement of food processing facilities in the country and the availability of such facilities in the country.

(d) & (e): 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/ FIs 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 appraise project and its recommendation for the release of grant is transmitted to the Ministry through e- portal established for this purpose. After the recommendation and requisite documents are received from the Bank/ FIs, the Ministry sanctions the grant and transfer the funds through the e-portal. The task of maintaining and compilation of data through e-portal has been assigned to HDFC Bank

Updated data is received from HDFC Bank from time to time and the same is put on Ministry’s website in public domain. The data indicates all relevant fields including sector, state, name of applicant, amount disbursed, bank and details of installments etc. thus, making the system completely transparent. The details are given at Annexure.