In a bid to create supportive and favourable atmosphere to set up food processing industries in the state, Government of Uttar Pradesh launched its Food Processing Industry Policy-2012. The policy aims to ensure a fair and financially rewarding price of the products produced to the growers by encouraging value addition.
- To set up food processing industries across the state.
- To reduce the post harvest losses of the raw produce grown in the primary sector.
- To make varieties of products available to consumers at a cost-effective price.
- To generate new employment opportunities in the food processing sector.
- To ensure a fair return of the investment made by the investor in the said industry.
Main highlights of the policy:
- New units in this sector to get 7% reimbursement on the interest that they are paying for the loan they took to buy plant, machinery and spare parts maximum up to ₹ 50 lakh per annum for a period of 5 years.
Capital Investment Subsidy-
- Units to get 25% subsidy on the cost of plant, machinery and technical civil works for setting up, expansion and modernization/ up-gradation of the units with a maximum amount of ₹ 50 lakh.
- 50% subsidy to be given to units on the cost of plant, machinery and technical civil works for setting up of integrated cold chain and processing infrastructure for non-horticultural produce under the National Food Processing Mission with a maximum amount of ₹ 10 crore.
Research and Development Grant-
- Annual 100% grant with a maximum amount of ₹ 30 lakh to be provided to each govt./semi-govt. institution for 3 years for R&D projects related to food processing.
- Annual 100% grant with a maximum amount of ₹ 10 lakh to be provided to each govt./semi-govt. institution for 3 years for protocol development projects related to food processing industry.
Assistance on Market Development-
- Assistance is available to new units with maximum investment of ₹ 25 lakh on plant, machinery and spare parts.
- 50% reimbursement with a maximum amount of ₹ 50,000/- is provided to each beneficiary for expenses made on sending the sample of a processed food product of U.P. for test marketing in non SAARC countries. This assistance is available to only for one sample and to one country.
- 20% reimbursement of FOB value addition with a maximum amount of ₹ 2 lakh is provided to each beneficiary for 3 years on export of processed products by Air/Sea to non SAARC countries.
Assistance for Human Resource Development under National Food Processing Mission-
- Grant up to ₹ 75 lakh for expenditure for infrastructural facilities for running degree/ diploma/certificate courses in food processing in the state.
- Grant of ₹ 11 lakh for machinery, in addition to ₹ 4 lakh for seed capital/ revolving fund for multi product line Food Processing Training Centre.
- Grant up to ₹ 2 lakh for Entrepreneurship Development Programme (EDP).
Exemption from Stamp Duty-
- New food processing units to get 100% exemption on stamp duty for purchasing/leasing land anywhere in the state.
Exemption from Mandi Fee-
- New export oriented units with an investment of ₹ 5 crore and above are to get 100 exemption from Mandi fee for a period of 10 years in plant and machinery section.
- The same is offered to all new export oriented units with an investment of ₹ 10 crore or above.
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