Question : FPIs in AP

(a) whether it is true that nearly 200 food processing units have come up in Andhra Pradesh (AP) in the last two years attracting an investment of Rs.4,000 crore;

(b) whether Andhra Pradesh is fast emerging as food processing hub in the country;

(c) if so, the steps taken by the Ministry, APEDA and MPEDA to further promote food processing sector in Andhra Pradesh;

(d) whether major performers in the State are East and West Godavari districts;

(e) if so, the special emphasis being given by the Ministry to these districts in food processing sector and also for promoting for the setting up of food parks; and

(f) the manner in which the Ministry is helping entrepreneurs to get collateral-free loan for setting up of food parks in Andhra Pradesh?

Answer given by the minister

THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAMESWAR TELI)

(a) & (b): As per the latest available Annual Survey of Industries estimates, the number of registered Food Processing unit/factories operating in Andhra Pradesh has increased from 4572 in 2014-15 to 4702 in 2016-17. The net addition to investment in fixed capital in 2016-17 over 2014-15 is Rs.3601 crores. In 2016-17, Andhra Pradesh has the highest number of registered food processing units/factories accounting for about 15% of the total such units/factories in the country.
(c) to (e): For overall growth and development of food processing industries by ensuring robust modern infrastructure along the entire value/supply chain of food processing, the Ministry of Food Processing Industries (MoFPI) has been implementing Central Sector Umbrella Scheme- PRADHAN SAMPADA MANTRI KISAN YOJANA (PMKSY) with an allocation of Rs.6000 crore for the period up to 2019-20 co-terminus with 14th Finance Commission Cycle. PMKSY has eight components viz; (i) Mega Food Parks, (ii) Integrated Cold Chain and Value Addition Infrastructure, (iii) Infrastructure for Agro-processing Clusters, (iv) Creation of Backward and Forward Linkages (v) Creation / Expansion of Food Processing & Preservation Capacities, (vi) Food Safety and Quality Assurance Infrastructure and (vii) Human Resources and Institutions and (viii) Operation Greens. These schemes are demand-driven and implemented all across the country including in the State of Andhra Pradesh and the East and West Godabari districts under it without any special treatment to any State or area. Under the schemes financial assistance in the form grants-in-aid is provided to
farmers, entrepreneurs, organizations such as Central and State PSUs /Joint Ventures /Farmer Producer Organizations (FPOs) /NGOs / Cooperatives / SHGs / Public and Private Companies etc. to set up food processing industries/projects/units. Financial assistance is provided to the eligible applicant as per the Scheme guidelines and against the Expression of Interest issued by the Ministry from time to time. The MoFPI has approved 27 food processing projects/units with a total grants-in-aid of Rs. 347.93 crore in Andhra Pradesh as under:


Scheme
Number
of Project Approved Total Grants-in- aid
Approved (Rs. In Crore)
Mega Food Parks 3 150
Integrated Cold Chain and Value Addition Infrastructure 15 130.63
Creation / Expansion of Food Processing
& Preservation Capacities 2 8.48
Infrastructure for Agro-processing Clusters 3 23.74
Creation of Backward and Forward Linkages 1 4.5
Food Testing Laboratories 2 8.77
Operation Green 1 48.81

Of the 27 projects approved in Andhra Pradesh, 9 belong to the East and West Godavari districts the details of which are at Annexure.

Also, Agricultural and Processed Food Products Export Development Authority (APEDA) and Marine Products Development and Export Authority (MPEDA) under the Ministry of Commerce & Industry, provide financial assistance to the exporters in the country including the exporters in the State of Andhra Pradesh for the promotion and development of APEDA and MPEDA scheduled products both fresh and processed for their exports. The schemes of APEDA and MPEDA are also implemented on all India basis. Of the 90 processing plants registered with MPEDA, 27 processing plants belong to West Godavari and 12 belong to East Godavari.

(f): The Ministry does not have any scheme for collateral-free loan for setting up of food parks in the country including the State of Andhra Pradesh. The Government has set up a special food processing fund of Rs.2000 crore with National Bank for Agriculture and Rural Development (NABARD) for affordable credit to Mega Food Parks (MFPs), Agro-processing Clusters (APCs) and other Designated Food Parks (DFPs) and food processing units set up in these Parks.

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