DARE - Because Entrepreneurs Do

The data on Food Processing Industries/units in the country, is not centrally maintained. Ministry of Food Processing Industries extends financial assistance in the country in the form of grant-in-aid to implementing agencies/entrepreneurs @ 25% of the cost of Plant & machinery and Technical Civil Works subject to a maximum of Rs. 50 lakhs in general areas or 33.33% subject to a maximum of Rs. 75 lakhs in difficult areas under the Scheme of Technology Upgradation/ Establishment/ Modernization of food processing industries.

Since financial assistance under above schemes is project oriented, no funds have been allocated State-wise. The financial assistance is provided to the various units under the Scheme of Technology Upgradation/ Establishment/ Modernization of food processing industries.  The details of financial assistance provided to the units State-wise during last three years is annexed.

Government has formulated and is implementing several Plan Schemes to provide financial assistance for the establishment and modernization of food processing units, creation of infrastructure, support of R&D, human resource development besides other promotional measures to encourage development of food processing industries. Moreover, the Government has taken several steps like tax reduction, waiver/reduction of excise duty, reduction of custom duty on specific food items with a view to encourage the growth of Food Processing Industries and make them more competitive.  Further, the Ministry under its Plan Scheme of establishing Food Testing Labs, Implementation of Quality Systems such as Hazard Analysis Critical Control Points (HACCP), Promotion of Research and Development, Capacity Building and Human Resources Development provide assistance to food processing industries to enable them to compete in the international market.

Food Processing Industries is employment intensive. It has been estimated that for every Rs. 1 crore invested, it creates 18 jobs directly and 64 indirectly in the organized sector and 20 jobs in the unorganized sector across the supply chain. Direct employment provided during the last five years has grown from 3.9 million to 4.4 million and indirect employment has grown from 6 million to 9 million.

Annexure (Rs. in lakhs)

Name of State	2007-08		2008-09		2009-10 (As on 13.11.2009)
	Approved	Amount released	Approved	Amount released	Approved	Amount released
Andhra Pradesh	43	947.49	48	908.999	28	581.86
Andman & Nicobar	0	0	0	0	0	0
Arunachal Pradesh	0	0	1	17.67	0	0
Assam	12	442.17	17	176.79	2	22.315
Bihar	5	83.915	2	42.3	1	25.00
Chandigarh	6	138.08	0	0	0	0
Chattisgarh	0	0	10	163.725	4	54.455
Delhi	0	0	7	160.65	2	50.00
Goa	1	17.00	1	24.57	1	24.26
Gujarat	32	544.06	39	714.81	4	37.36
Haryana	19	418.72	23	349.415	34	553.34
Himachal Pradesh	12	325.09	5	152.745	9	224.52
Jammu & Kashmir	9	109.855	3	22.05	6	54.741
Jharkhand	2	9.09	0	0	3	44.09
Karnataka	34	529.62	35	629.895	17	251.375
Kerala	47	876.8	32	545.37	16	281.185
Madhya Pradesh	10	172.32	14	201.87	11	152.655
Maharashtra	95	1696.805	121	1802.633	85	1216.895
Manipur	3	61.74	3	45.51	4	79.825
Meghalaya	1	8.19	2	159.57	1	13.86
Mizoram	0	0	0	0	1	11.00
Nagaland	1	27.485	4	178.205	0	0
Orissa	6	129.41	2	38.68	4	56.72
Pondicherry	2	31.3	0	0	0	0
Punjab	32	481.45	61	841.36	12	143.055
Rajasthan	35	566.075	44	551.975	18	227.827
Sikkim	0	0	0	0	0	0
Tamil Nadu	53	951.79	36	594.355	31	471.140
Tripura	2	39.98	1	13.86	0	0
Uttar Pradesh	63	1123.425	43	875.475	18	308.320
Uttranchal	9	339.78	6	163.15	4	23.550
West Bengal	35	653.56	19	390.135	4	77.226
Total	569	10725.2	579	9765.767	320	4986.574

SOURCE: PIB

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