Question : SETTING UP OF FOOD PROCESSING UNITS



(a) whether the Union Government has received proposals from various entrepreneurs/State Governments including Maharashtra, Rajasthan and Uttarakhand for setting up of Food Processing Industries (FPIs);

(b) if so, the details thereof during each of the last three years and the current year, State-wise;

(c) the details of the proposals cleared and pending for approval, State-wise;

(d) the assistance provided by the Union Government for the purpose; and

(e) the time by which the pending proposals are likely to be cleared?

Answer given by the minister


THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI HARISH RAWAT)

(a): Yes, Sir.

(b) to (d): Earlier all the applications for such grants were received by the Ministry through the State Nodal Agencies under the scheme for Technology Upgradation/Establishment/Modernization of Food Processing Industries. These applications were then Centrally processed and grants disbursed directly by the Ministry. 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 (FIs). 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 appraisal report and its 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/ FIs, the Ministry sanctions the grant and transfer the funds through the e-portal.

The details of financial assistance extended to the units and number of units assisted under the scheme for Technology Upgradation/Establishment/Modernization of Food Processing Industries in the country including that of Maharashtra, Rajasthan and Uttarakhand during last three years and current year, state wise is at Annexure-1.

(e): The clearance of the proposal under the Scheme for Technology Upgradation / Establishment/ Modernization of Food Processing Industries depends upon the availability of funds and other factors like receipt of requisite documents. Hence, it may not be possible to define a time frame for clearance of remaining applications.