Food Processing Industry

The Cabinet Committee on Economic Affairs (CCEA) approved a proposal to raise allocation of plan fund from Rs.98.00 crore to Rs.295.00 crore for the Scheme of Technology Upgradation/ Modernization / Establishment of Food Processing Industry (FPI) units during the X Plan period. The enhancement will be met from within the existing X Plan allocation of the Ministry.Through this initiative more funds will become available for expenditure under the scheme so as to promote technology up gradation /modernization/ establishment of food processing units in the country.

The scheme will actively be engaged in activities covering all segments viz., fruits & vegetables, milk products, meat, poultry, fishery, oil seeds and such other agri-horticultural sectors leading to value addition and shelf life enhancement including food flavours and colours, oleoresins, spices coconut, mushroom, hops etc.

Assistance is given in the form of grant @ 25% of the project cost of plant & machinery and technical civil work subject to a maximum of Rs.50 lakh in General Areas and 33.33% up to Rs.75 lakh in Difficult Areas such as J&K, Himachal Pradesh, Uttaranchal, Sikkim, North Eastern States, Andaman & Nicobar Islands, Lakshdweep and Integrated Tribal Development Project (ITDP) areas.