Sick Units in Food Processing Sector Gets Attention in Lok Sabha

Over a period of last one decade or so, Indian food processing industry is witnessing major trend of industries getting out of business or getting sick. Although there is no scheme in the Ministry of Food Processing Industries for upgradation, modernization and revival of sick food processing units in the country, however, a scheme for Technology Upgradation / Establishment / Modernization of Food Processing Industries was being implemented under National Mission on Food Processing (NMFP), during the 12th Plan w.e.f. 01.04.2012 through State/UT Governments for providing financial assistance for creation of new processing capacity and up-gradation of existing processing capabilities in food processing sector.
On this context, Minister of State, Food Processing Industries, Sadhvi Niranjan Jyoti presented a written reply in Lok Sabha and clarified her ministries action plan on this subject. Ms Jyoti highlighted, that under the aforesaid scheme, the eligible organizations to which grant-in-aid is provided are all implementing agencies/ organizations such as Govt/ PSU/ Joint Ventures /NGOs/ Cooperatives/ SHGs/ Private Sector/ individuals engaged in establishment/ upgradation/ modernization of food processing units. Eligible Food Processing Sectors under the scheme are fruits & vegetables, milk/meat/poultry/fish products, cereal/other consumer food products, rice/ flour/ pulse/ oil milling and such other agri-horti sectors including food flavours, colours, oleoresins, spices, coconut, mushrooms, wines and hops. The pattern of assistance under the scheme was as follows:

• 25% of the cost of Plant & Machinery and technical civil works, subject to a maximum of Rs. 50 lakhs in general areas.

• 33.33% of the cost of Plant & Machinery and technical civil works, subject to a maximum of Rs. 75 lakhs in difficult areas (i.e. Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Andaman & Nicobar Islands and Lakshadweep) and Integrated Tribal Development Project (ITDP) areas.

• 50% of the cost of Plant & Machinery and technical civil works, subject to a maximum of Rs.100 lakhs for North-Eastern States including Sikkim.

However, the National Mission on Food Processing and consequently the above scheme being a part of it has been delinked from the central government support with effect from 01.04.2015 in view of increased resource allocation to States resulting from the recommendations of 14th Finance Commission and presently, the scheme is at the disposal of State/UT Governments.