Food Processing Mission: Rs 1398 Crore Invested in 737 units in Four and a Half Years

• 20 May 2023

Why In News?

According to the information provided by the Chhattisgarh Public Relations Department on May 18, 2023, under the 'Chhattisgarh State Food Processing Mission' implemented in the state, 737 new units were established in the state in the last four and a half years, with a capital investment of Rs 1397 crore 24 lakh and 6 Thousand 896 people have got employment.

Key Points

• Under the mission, a technical upgradation, establishment and modernization program of food processing units is being conducted, in which grant up to 25 percent (maximum Rs. 50 lakh) of the cost of plant and machinery and technical civil works is being given.
• Similarly, for new cold chain in horticulture and non-horticulture sectors, 35 percent (maximum Rs. 5 crore) of the cost of the project under the Value Addition and Conservation Infrastructure Development Program and up to Rs. 2 crore by banks or financial institutions for a period of 5 years. The grant of the amount is being given at the annual rate.
• Under the program for establishment of primary processing centers and collection centers in rural areas, grant up to 50 percent (maximum Rs. 2.50 crore) of the project cost is being given. On the other hand, under the Reefer Vehicle Scheme, subsidies up to 50 percent (maximum Rs. 50 lakh) of the cost of cooling are being provided to the entrepreneurs.
• It is worth mentioning that in terms of grant for setting up food processing units, the background of the applicant should be strong, that is, the net worth of the applicant should be more than 1.5 times of the grant applied for. Term loan should be availed, the term loan should not be less than 25 percent of the project cost.
• All project components for which grant is sought should be included in the project appraisal report of the bank and financial institution. The date of commercial production should not be earlier than the date of submission of application. Any 2 project components will have to be established out of the prescribed components for the scheme.
• It is noteworthy that under the Agriculture and Food Processing Policy, a new scheme 'Chhattisgarh State Food Processing Mission' is implemented in the state.
• The objective of the Food Processing Mission is to establish food processing industries, to bring more and more investment in the field of food processing in the state, to upgrade products and increase their capacity, to give economic benefits to farmers by collecting and processing agricultural products, and food security. And to improve the standards of cleanliness and to provide a better support system for the organized food processing sector.