Food processing projects worth Rs 1,560 cr okayed

New Delhi, Jan 6: The Government approved food processing projects worth Rs 1,560 crore including Rs 456 crore of foreign investment during the calendar year 2001.

Food Processing Industries ministry approved financial assistance of Rs 47 crore to 170 projects for creating infrastructure and units, invested Rs 10 crore in research and development and given clearance for 20 food parks with assistance upto Rs four crore for each, according to the figures released by the Government.

To boost foreign investment, approval for 100 per cent foreign equity has been given for most of the processed food items. The initiatives by the food processing industry during 2001 include approvals for numerous joint ventures, industrial licences and 100 per cent export oriented units.

To enable availability of processed foods to the common-man at affordable prices excise duty for the segment has been brought down to zero per cent from 16 per cent.

The target was for an investment of Rs 1.4 lakh crore in order to increase food processing level to 10 per cent from two per cent. This will help generate direct employment of 75 lakhs and ensure better prices to farmers for their produce.

A network of food processing industrial estates and parks was being set up to enable entrepreneurs to establish a cluster of food industries in selected areas.

Efforts were also being made to bring about a synergy between food parks and agri-exports zones. A network of food laboratories were also being set up to ensure production of quality food items particularly for exports.

— PTI