Economy

Centre Approves 7 Projects for Boosting Infrastructure of Agro-Processing Cluster

The Union Minister of Food Processing Industries, Shri Narendra Singh Tomar, headed the Inter-Ministerial Approval Committee (IMAC) meeting through video conference on Tuesday. The meeting agenda was to consider the proposals received under the Scheme for Creation of Infrastructure for Agro-Processing Cluster (APC). APC is a part of Pradhan Mantri Kisan Sampada Yojana (PMKSY). 

In the meeting, the IMAC approved seven proposals of Food Processing Projects worth Rs.234.68 crore on Tuesday. The promoters of these projects were also present in the video conference meeting. The total project cost of the seven proposals is Rs.234.68 crore, which includes grants-in-aid of Rs.60.87 crore in the States/UTs of Gujarat, Karnataka, Madhya Pradesh, Meghalaya and Maharashtra. The approved food processing projects are expected to generate employment for around 7,750 persons in the country. It is also likely to procure private investments of Rs.173.81 crore. 

The APC is a scheme under the PMKSY to incentivise the setting up of agro-processing clusters in the country. This scheme got an approval on 3rd May 2017. This scheme aims to develop modern infrastructure for encouraging entrepreneurs to establish food processing units based on a cluster approach. 

The cluster approach will help to add value to the agricultural or horticultural produce and reduction in wastage of the surplus produce. Food processing units established based on the cluster approach will result in creating employment opportunities at the local level and increment in the income of the farmers.

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Earlier, in a meeting held on 21.11.2020, the IMAC approved 28 food processing projects worth Rs.302.33 crore. This meeting was headed by The Union Minister of Food Processing Industries, Shri Narendra Singh Tomar. These 28 food processing projects have the support of the grant of Rs.107.42 crore by the Ministry of Food Processing Industries. The IMAC approved these projects under the Scheme of Creation/Expansion of Food Processing and Preservation Capacities (CEFPPC) (Unit Scheme) under the PMSKY. 

These 28 projects are spread over ten states and expected to generate employment for around 10,000 people. They are spread across the states of Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh, Karnataka, Jammu and Kashmir, Tamil Nadu, Assam, Uttarakhand and Manipur. Out of the 28 projects, six projects belong to the North Eastern States which have a project cost of Rs.48.87 crore supported with a grant from the Ministry of Food Processing Industries of Rs.20.35 crore. 

The approval of these food processing projects under the APC scheme will encourage and provide support to entrepreneurs for establishing more food processing units. The establishment of these units will create more employment opportunities on the one hand and will improve the economy by generating income to farmers on the other hand. These units will boost the economic growth of India and also increase agricultural production across the country.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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