Rajeev Chandrasekhar's official website - Member of Parliament

GOVERNMENT OF INDIA

Ministry of Food Processing Industries

 

RAJYA SABHA

UNSTARRED QUESTION NO 3353

TO BE ANSWERED ON 07.05.2007

Expansion of Food Processing Industries in Karnataka

3353.

SHRI RAJEEV CHANDRASEKHAR

 

 

 Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:-

(a)  the schemes for the expansion of Food Processing Industries in the State of Karnataka which are presently in the process of execution, scheme-wise;

(b) by when each one is likely to be completed; and

(c) the reasons for delay for those pending for over one year after the time stipulated for completion? ANSWER

 

ANSWER

THE MINISTER OF STATE OF THE

MINISTRY OF FOOD PROCESSING INDUSTRIES
(SHRI SUBODH KANT SAHAI)

(a) to (c): The Ministry of Food Processing Industries under its Plan Scheme for Technology Upgradation/Modernization/Establishment of Food Processing Industries, extends financial assistance in the form of grant- in-aid @ 25% of the cost of Plant & Machinery and Technical Civil works subject to a maximum of Rs.50 lakhs in general areas or 33.33% subject to a maximum of Rs.75 lakhs in difficult areas to implementing agencies/entrepreneurs for setting up/modernization/ technology upgradation of food processing industries in the country. During the last five years, a total of 191 applications from food processing units were received and 64 were approved for grant in respect of the State of Karnataka. The grants from this Ministry are released in two instalments. The first instalment is released after the implementing agency has utilized 50% of their contribution and 50% of Term Loan availed. Final instalment is released on full utilization of promoter contribution and Term loan and after unit has started commercial production. The Ministry processes applications for financial assistance and sanctions grants under various Plan Schemes on the basis of the applicant units fulfilling the required criteria and furnishing of relevant documents. Delay in receipt of required documents/information from the applicant units is one of the major reasons for delay in approval of projects and release of sanctioned grant.