The agro-processing policy will top the state government's agenda as it is likely to be unveiled in the first week of September. The idea is to promote agro-processing units by investors, both domestic and foreign, who will be participating in a three-day international exposition "agro-advantage Maharashtra" from November 6 to 9 in Mumbai.

Government sources told The Financial Express that the policy will offer both fiscal and non-fiscal incentives to the investors. The host of concessions will include rebate in sales tax, electricity duty, power tariff, stamp duty.

Land will be reserved for agro-processing units in prime five-star industrial estates set up by the Maharashtra Industrial Development Corporation at Mahad (Raigad), Nivli Phute (Pune), Kagal-Hatkalangade (Kolhapur), Shendgre (Aurangabad), Waluj (Aurangabad), Kusnur (Nanded), Nandgaon-Peth (Amravati) and Butibori (Nagpur). The agro-processing units along with those in floriculture, tissue culture, mushroom farming and cold chains will also be entitled for sops given in the d-zone industrial area by the state government.

The Maharashtra Agro Industries Development Corporation (MAIDC) will be the nodal agency for speedy clearance of all projects likely to come in the agro-processing and related sectors. Investors will get all clearances including pollution control, land ceiling and others through MAIDC.

The new policy will also dwell upon the possible private sector investment in the development of about 75 lakh hectares of wasteland in the state. The government proposes to give such land to the private sector on a priority basis. It will also encourage central farming to attract private sector.

Maharashtra is also a major producer of alphanso mango and seedless grapes which are grown on one lakh hectares of land each. The exports of seedless grapes, especially to the European markets, have crossed more than Rs 70 crore.

The state has spent more than Rs 125 crore on drip irrigation to cover 1,25,000 hectares of land. It plans to cover an additional five lakh hectares of land under horticulture. So far, 10 lakh hectares of land has already been covered under horticulture.

Earlier, addressing a investors meet here, state agriculture minister Radhakrishna-Vikhe Patil said the new policy will boost investments in agro-processing sector. He said the government will act as a facilitator and help remove impediments in the setting up of agri-business in the state.

The meeting was jointly organised by the Maharashtra government and the Confederation of Indian Industry (CII).

Vikhe-Patil said that "Krishi-Udyog Mitra" on the lines of "Udyog Mitra" will be soon set up to look into the problems faced by the investors.

Minister of state for agriculture Harshvardhan Patil called upon the investors to participate in "Agro-Advantage Maharashtra" in a big way. He said that Maharashtra leads in agriculture and 22 per cent of the state's income comes from agriculture.

Meanwhile, Escorts chairman Rajan Nanda and CII's agriculture committee chairman appreciated the state government's initiative for the growth of "sunrise" industry.

State agriculture secretary UC Sarangi, state animal husbandry and dairy development secretary Suresh Joshi, state agriculture commissioner SK Goyal and APFDA chairman Rajgopalan were also present on the occasion.