Question : FPIS IN NER



(a) the number of Food Processing Industries (FPIs) set up in Assam and the North Eastern Region (NER) including Sikkim in the last three years; and

(b) the steps taken by the Government to encourage Food Processing Industries in the North Eastern Region (NER)?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF FOOD PROCESSING INDUSTRIES (SHRI SUBODH KANT SAHAI)

(a) to (b): The Ministry of Food Processing Industries (MFPI) under its Plan Schemes provides financial assistance in the form of grant-in-aid for Establishment /Upgradation/Modernization of Food Processing Industries @ 25% of the cost of Plant & Machinery and Technical Civil Work subject to a maximum of Rs. 25 lakhs for general areas and 33.33% upto maximum of Rs. 75 lakhs for difficult areas. The Ministry does not set up Food Processing Industries of its own. The Ministry has approved financial assistance of Rs.16.00 crores for 40 projects in North-Eastern Region including Sikkim during the last three years i.e. 2004- 05,2005-06, 2006-07.

For encouraging Food Processing Industries in North Eastern Region (NER), 10% of the total Plan outlay is earmarked for North Eastern Region. Further, grant-in-aid at higher rate of 33.33% of Plant & Machinery and Technical Civil Work subject to maximum of Rs. 75 lakhs is provided for difficult areas including North Eastern Region for Establishment /Upgradation/Modernization of Food Processing Industries under Plan Schemes of Ministry. Under Mini Mission IV of Technology Mission for Integrated Development of Horticulture in North Eastern States, Uttrakhand, Himachal Pradesh and Jammu & Kashmir, higher level of assistance in the form of credit linked back-ended subsidy is available to the extent of 50% of cost of Plant & Machinery and Technical Civil Work to a maximum of Rs. 4.00 crore of setting up of new units and upto Rs. 1.00 crore for Upgradation/Modernization of existing units.