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Chapter-4

PLAN SCHEMES FOR FOOD PROCESSING SECTOR

4.1 GENERAL (a) Mega Food Parks

A strong and dynamic food processing sector plays a (b) Cold Chain, Value Addition and
significant role in diversification of agricultural activities, Perseveration Infrastructure
improving value-addition opportunities and creating
surplus for export of agro-food products. This requires (c) Setting up / Modernization of Abattoirs
policies and plans for improvement of food processing approved in 11th Plan.
infrastructure including up-gradation of technology,
enforcement of quality standards and promoting (The scheme has been subsumed under the
investment in food processing. Food Processing adds National Mission on Food Processing w.e.f.
value, enhances shelf-life and reduces wastage. It provides 01.04.2014)
remunerative prices to the farmers, generates employment
opportunities and provides convenience to consumers. II. Strengthening of Institutions
Food Processing has tremendous potential for enabling
the farmer to add value to their produce both in terms of (a) National Institute of Food Technology
quantity and quality to meet the requirements and standards Entrepreneurship & Management
of the market at all stages of value chain, processing and
retailing. Considerable investments are required in rural (b) Indian Institute of Crop Processing Technology
infrastructure and in components of the supply chain by
way of grading and packing centres, controlled atmosphere (c) Indian Grape Processing Board
facilities, reefer vans, cold storage for perishable cargo at
port/airport/ railway stations, a chain of testing laboratories (d) National Meat & Poultry Processing Board
to meet international quality standards, etc., which are not
likely to come from private sources. Significant public III. Quality Assurance, HACCP and R&D and
investments would, therefore, be required to create suitable Promotional Activities
infrastructural facilities to develop a sustainable supply
chain linking farmers to processing centres. The Ministry 4.2.2 Working Group has also recommended for a
of Food Processing Industries has been supporting a range new Centrally Sponsored Scheme in the form of
of initiatives for the growth of food processing industry. “National Mission on Food Processing” proposed
to have 8 components. Five components, namely,
4.2 12th PLAN PROPOSALS: (i) Technology up-gradation/ establishment/
modernization of food processing industries, (ii)
4.2.1 Working Group on Food Processing Industries for Human Resource Development, (iii) Construction
the 12th Plan has recommended for continuation of & Modernization of Abattoirs (iv)Promotional
following schemes as Central Sector Schemes during Activities and (v) Cold Chain, Value Addition &
the 12th Plan period:- Preservation Infrastructure for non-horticulture
produce were included in the first phase of
I. Infrastructure Development Scheme the Scheme. Four new activities, namely, (i)
Modernization of Meat Shops, (ii) Reefer vehicles,

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(iii) Creation of Primary Processing Centres (PPCs)/ production of various agricultural crops and
Collections Centres (CCs) in Rural Areas and (iv) allied products. However, the post-harvest
Old Food Parks were added as new components. management, preservation, transportation and
value addition are not adequate in the Indian
4.2.3 Working Group has also recommended for two new farm sector. This results in huge wastage at each
central sector schemes namely, (I) Venture Capital stage of the supply chain.
Fund Scheme and (II) Innovation Fund Scheme.
But, these schemes could not be taken up due to fund (ii) Post-harvest losses can be minimized to a
constraints. greater extent by creation of uninterrupted
cold chain infrastructure linking the farm gate
4.3 THE SALIENT FEATURES OF THE PLAN to the retail outlet. Efficient and adequate
SCHEMES: storage and transportation facilities will not
only result in more income to the farmers but
4.3.1 Scheme for Infrastructure Development also in steady supply of food products at retail
outlets. The current scenario reveals that there is
The Ministry of Food Processing Industries is a tremendous scope for the development of cold
implementing the Scheme for Infrastructure development chain and preservation facilities.
which has 3 components, namely Mega Food Parks,
Integrated Cold Chain and Setting up/Modernization of (iii) In this backdrop, the Ministry launched the
Abattoirs. scheme of cold chain, value addition and
preservation infrastructure in year 2008 with
4.3.1.1 Mega Food Park Scheme: an objective to provide integrated cold chain,
value addition, and preservation infrastructure
Mega Food Park Scheme, being implemented since facilities without any break from the farm gate
2008, aims to create a modern food processing infrastructure to the consumer.
for the processing units based on a cluster approach and on
a hub and spoke model in a demand driven manner. The (iv) Under the scheme, the cold chain infrastructure
scheme intends to facilitate establishment of an integrated can be set up by individuals, groups of
value chain, with food processing at the core and supported entrepreneurs, cooperative societies, Self Help
by requisite forward and backward linkages. The central Groups (SHGs), Farmer Producer Organizations
processing centre is networked with the primary processing (FPOs), NGOs, Central/State PSUs, etc. with
centers and collection centers located at the farm-gate in business interest in cold chain solutions and also
production areas. The broader idea behind the scheme by those who manage supply chain.
is to bring together farmers, processors and retailers and
link agricultural production to the market so as to ensure (v) The implementation schedule for the project is
maximization of value addition, minimization of wastages 24 months in general areas and 30 months in
and improving farmers’ income. The Time schedule for case of NE region and difficult areas from the
completion and successful operationalization of project is date of the approval of each project. Programme
30 months from the date of issue of final approval letter. Management Agency (PMA) has also been
engaged to assist Ministry in implementation
4.3.1.2 Scheme for Cold Chain, Value Addition and and monitoring the cold chain projects as well
Preservation Infrastructure as scrutiny and appraisal of the proposals.

(i) India has made significant achievement in

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4.3.1.3 Scheme for Setting up / Modernization of MODERNIZATION OF FOOD PROCESSING
Abattoirs. INDUSTRIES

During 11th Plan, the Ministry had launched a Ministry has been implementing the Scheme of
comprehensive scheme for modernization of abattoirs Technology Up gradation/ Establishment/ Modernization
across the country. The scheme provides for induction of of Food Processing Industries since 9th Plan. Under this
private capital, better technology, backward and forward Scheme, Ministry extended financial assistance to food
linkages. Financial assistance is provided, subject to processing units including fruits and vegetables units in
necessary approval, at 50% and 75% of the cost of Plant & the form of grants-in-aid to the implementing agencies/
Machinery and Technical Civil Work in general and difficult entrepreneurs @ 25% of the cost of Plant & Machinery and
areas respectively, subject to a maximum of Rs. 15 crore for Technical Civil Work Subject to maximum of Rs. 50 lakhs
each project. Difficult areas include North Eastern States in general areas and 33.33% up to a maximum of Rs. 75
including Sikkim, Jammu & Kashmir, Himachal Pradesh, lakhs in difficult areas.
Uttarakhand and ITDP notified areas of the States.
At the beginning of 12th Plan (as on 01.04.2012), there
The scheme provides for implementation of was a committed liability of Rs. 740 crore for 3168 cases.
projects with the involvement of local bodies (Municipal The Scheme of Technology Up-gradation/ Establishment/
Corporations and Panchayats)/Public Sector Undertakings/ Modernization of food Processing Industries was subsumed
Co-operatives/ Boards under Government and has the in centrally sponsored scheme – National Mission on Food
flexibility for involvement of private investors on PPP basis. Processing (NMFP) during 12th Plan for implementation
Regulatory functions continue to be discharged through through State/ UT Governments w.e.f. 01.04.2012.
local bodies. This enables the local bodies to participate However, the NMFP has since been de-linked from Central
in the venture and also be assured of a stream of income. Government Support with effect from 01.04.2015, except
for UTs (upto 31.03.2016). However, committed liabilities
A proposal for upscaling of the scheme has are being discharged under this scheme.
been approved for setting up of 25 new abattoirs and
modernization of 25 existing abattoirs at a total project cost 4.3.3 SCHEME FOR QUALITY ASSURANCE,
of Rs 330.84 crore, inclusive of committed liabilities in CODEX STANDARDS AND RESEARCH
respect of the on- going projects of 11th Plan. & DEVELOPMENT AND OTHER
PROMOTIONAL ACTIVITIES:
The scheme was implemented in the central sector
for the first two years of the 12th Five Year Plan i.e. 2012- The scheme has three components as under:-
13 and 2013-14. The Scheme was transferred to State
Governments for implementation through National Mission (A) Setting Up/Up-gradation of Quality Control/ Food
on Food Processing (NMFP) for the rest of the 12th Five Testing Laboratories
Year Plan i.e. w.e.f. 01.04.2014, since most of the proposals
are from the Municipal Bodies which are closely connected (i) For a successful food processing sector in India,
to the State Governments. However, the NMFP has since various aspects of Total Quality Management
been de-linked from Central Government Support with such as quality control, quality system and
effect from 1.4.2015, except for UTs (upto 31.03.2016). quality assurance should function in an
integrated fashion. These are vital for reaching
4.3.2 SCHEME FOR TECHNOLOGY the world market as well as to avoid being
ESTABLISHMENT/ swamped by imported food items. The Ministry
UPGRADATION / aims at setting up a network of laboratories

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to help in implementing quality regime for associated with the equipment for difficult

processed food. The major objectives are: areas. When the Ministry establishes/sponsors

such food testing laboratories, there would

(a) To establish a surveillance system for be no ceiling on financial assistance. For the

monitoring the quality and composition of food purpose of this scheme difficult areas include

(b) To analyze the samples received from J&K, Himachal Pradesh, Uttarakhand, Sikkim,
processing industry and other stakeholders. North-Eastern States, Andaman & Nicobar
Islands, Lakshadweep, and Integrated Tribal

Development Project (ITDP) areas.

(c) To reduce the time for analysis of samples by

reducing transportation time of samples. (iii) In order to ensure better and more effective

(d) To ensure compliance of international and utilization of funds, implementation of the
domestic standards on food in case of exports Food Testing Laboratory Scheme is being
as well as imports. implemented through ICAR under the Ministry
of Agriculture and Farmers Welfare, Department

(ii) Under the Plan Scheme, Central/State of Agricultural Research & Education during the
Governmentandtheirorganizations/Government 12th Plan with effect from 01.04.2012. Proposals
universities (including deemed universities) are received up-to 31.03.2012 are being dealt with
eligible for grant – in - aid of entire cost of the by the Ministry. It has since been decided to
laboratory equipment. In addition, they are also implement the scheme by the Ministry on its
eligible for 25% of the cost of Technical Civil own. The guidelines to this effect are under
Work to house the equipment and furniture revision.

and fixtures associated with the equipment for (B) Research & Development:-
general areas and 33% of the cost for difficult

areas. In addition, they are also eligible for 80% (i) Research and Development in the processed
of monthly emoluments of two technical staff food sector is an important area where much
for two years from the date of completion of the focused attention is required as it is related

laboratory i.e. on procurement and installation to improvement of production, quality,
of all the equipment and completion of civil enhancement of trade, consumer safety and
work of Food Testing Laboratory, provided this public health. There is a need for up gradation
does not exceed the emoluments prescribed of processing, handling, packaging, storage

for Junior Research Fellow under Indian and distribution technologies for all major
Council of Agricultural Research (ICAR). All processed food products so as to meet domestic
other implementing agencies/private sector & international standards. The main areas in
organizations/universities (including deemed which R&D is required are:-

universities) are eligible for grant-in-aid of 50%

of cost of laboratory equipment and 25% of a) to develop innovative products and processes;

the cost of Technical Civil Work to house the

equipment and furniture and fixtures associated b) to develop efficient technology for processing of

with the equipment for general areas and 70% of food products including design and building of

cost of laboratory equipment and 33% of cost of proto-type equipment and pilot plants;

technical civil works and furniture and fixtures

c) to develop cost effective technology for

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preservation and packaging of food products. 9000/GHP/GMP and other quality/safety
management systems in food processing units
(ii) The Ministry under its scheme for Research will help in improving the overall quality of
and Development in Processed Food Sector food and safety and hygiene in the sector and
is providing financial assistance to promote facilitate in increasing our share in global food
and undertake demand driven R&D work in trade.
the above areas leading to innovative products
and processes with commercial value. The (ii) Assistance in the form of re-imbursement
existing R&D scheme is being implemented of expenditure is provided to Central/
through Science and Engineering Research State Government Organisations, IITs and
Board (SERB) under the Department of Science Universities and private sector units to the
and Technology during 12th Plan with effect extent of 50% of the cost of consultant’s fee,
from 01.04.2012. Proposals received up-to fee charged by certification agency, cost of
31.03.2012 are being dealt with by the Ministry. plant & Machinery, Technical Civil Work and
other expenditure towards implementation of
(iii) For Government Organizations/ institutions/ Total Quality Management System including
universities, grant is given @ 100 % of the cost ISO 9000, ISO 22000, HACCP, GMP & GHP
of equipment plus cost of consumables and subject to maximum limit of Rs.15 lakh in
expenditure related to Junior Research Fellow/ general areas and to the extent of 75% of the
Senior Research Fellow/ Research Associate/ cost in difficult areas subject to a maximum
Research Assistant/ Project Assistant specific to of Rs.20 lakh. As per the revised guidelines
the project of specified duration for maximum applicable w.e.f. 01.04.2014, assistance in the
of three years. No assistance will be provided form of re-imbursement of expenditure has been
for already existing equipment. For private increased subject to maximum of Rs.17 lakh in
organizations/institutions/ universities, grant general areas and Rs.22 lakh in difficult areas.
is given to the tune of 50% of equipment cost The revised guidelines have been uploaded on
in general areas and 70% in the difficult areas. the Ministry’s website.
Difficult areas include J&K, Himachal Pradesh,
Uttarakhand, Sikkim, North-Eastern States, (D) Promotional Activities:
Andaman & Nicobar Islands, Lakshadweep, and
Integrated Tribal Development Projects (ITDP) The Promotional Activities of the Ministry are aimed
areas. at the development of the processed food sector, creating
awareness, attracting investment, etc. Participation
(iv) The scheme guidelines have been revised w.e.f in national/ international exhibitions/ fairs is made to
01.04.2013. The revised guidelines have been disseminate information regarding food processing
uploaded in the Ministry’s Website. It has been industries, familiarizing the existing and prospective
decided that implementation of R&D scheme entrepreneurs with modern techniques of production and
will now be done by the Ministry. packaging, development of market and popularization
of products. The Ministry also provides assistance for
(C) Implementation of HACCP/ ISO22000, ISO 9000/ organizing workshops, seminars, exhibitions/ fairs, studies/
GHP/ GMP:- surveys/ feasibility reports are essential to monitor/ review/
assess and revise various schemes/ plans/ vision for Ministry
(i) Implementation of HACCP/ISO 22000, ISO as well as various schemes/ plans/ vision for Ministry as

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well as allied sectors. c) Modernization of Abattoir

The Scheme has following components: (ii) Scheme for Technology Up-gradation /
i. Seminars/ Workshops; Establishment / Modernisation of Food
Processing Industries.

ii. Studies/ Surveys; (iii) Scheme for Quality Assurance, R&D and Codex
iii. Exhibitions/ Fairs. Standards
4.3.4 Scheme for Human Resource Development (HRD):
(iv) Scheme for Human Resource Development
(HRD)

The Ministry has been implementing the Scheme for (v) Scheme for Promotional Activities
Human Resources Development since 9th Plan and onwards
to augment the supply of trained manpower/personnel at all 4.4.2 During 12th Plan, the Schemes of MoFPI were
levels namely entrepreneurs, managers, salespersons, floor restructured by merging the ongoing schemes
workers etc. for food processing sector. Under the 12th of Technology Upgradation/ Establishment/
Five Year Plan (2012-17), the Scheme has been subsumed Modernization of Food Processing Industries;
under the National Mission on Food Processing (NMFP), Cold Chain, Value Addition and Preservation
for implementation through State/ UT Governments. Infrastructure for non-horticultural produce; Human
During the 12th plan, the Ministry is processing the Resource Development & Promotional Activities
spillover liabilities of 11th plan as per scheme guidelines. and new Schemes for Creating Primary Processing
However, the NMFP has since been de-linked from Central Centres / Collection Centres in Rural Areas;
Government Support with effect from 1.4.2015, except for Modernization of Meat Shops and Reefer Vehicles
UTs (upto 31.03.2016). under the Centrally Sponsored Scheme of National
Mission on Food Processing (NMFP). In addition,
4.4. Re-structuring of the Schemes under the new the following ongoing Central Sector Schemes were
Central Sector Scheme – SAMPADA (Scheme also implemented by the Ministry:
for Agro-Marine Processing and Development of
Agro-Processing Clusters) (i) Scheme for Mega Food Parks

4.4.1 The Ministry of Food Processing Industries had (ii) Scheme for Cold Chain, Value Addition and
implemented the following schemes during 11th Preservation Infrastructure Scheme
Plan for the promotion and development of food
processing sector in the country: (iii) Scheme for setting up / modernization of
Abattoirs
(i) Scheme for Infrastructure Development:
a) Mega Food Park (iv) Scheme for Quality Assurance, R&D and
Promotional Activities

b) Cold Chain, Value Addition and Preservation 4.4.3 However, Centrally Sponsored Scheme (CSS) -

Infrastructure National Mission on Food Processing (NMFP)

launched by this Ministry during 12th Plan has been

de-linked from the Central Government support

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w.e.f. 1.4.2015, except for UTs (upto 31.03.2016). earnings. This sector is also capable of addressing
Consequently, all nine schemes of the Mission stand critical issues of food security, food inflation and
discontinued. providing wholesome, nutritious food to the masses.

4.4.4 Presently, there is no scheme in the Ministry to 4.4.6 In view of above, Ministry of Food Processing
promote individual food processing and preservation Industries has proposed to re-structure the ongoing
units to expand processing capacity. The scheme schemes of the Ministry and introduce new schemes to
of Mega Food Park requires larger investment of promote holistic growth of the sector and fill up gaps
about Rs. 150 crore for a project with a minimum in the supply chain by proposing an umbrella Scheme
area of 50 acres. There is a need to create smaller for Agro-Marine Processing and Development of
agro processing clusters near the production areas Agro-Processing Clusters (SAMPADA).
in different States. Creation of backward & forward
linkages in the supply chain is essential to benefit 4.4.7 SAMPADA is proposed to be implemented with
farmers as well as consumers. Presently, there is no an allocation of Rs. 6,000 crore for the period
scheme to incentivize backward & forward linkages of 2016-20 coterminous with the 14th Finance
in the supply chain. Commission cycle by merging ongoing schemes of
Mega Food Parks; Integrated Cold Chain and Value
4.4.5 Food Processing Sector has emerged as an important Addition Infrastructure; Modernization / Setting up
segment of the Indian economy in terms of its of Abattoirs; Food Safety and Quality Assurance
contribution to GDP, employment and investment. Infrastructure; Human Resources & Institutions
During 2015-16, the sector constitutes as much as and new schemes for Infrastructure for Agro-
8.80 and 8.39 per cent of GVA in Manufacturing and processing Clusters; Creation of Backward and
Agriculture sector respectively. Food Processing Forward Linkages and Creation / Expansion of Food
Industries sector has grown at 7.00 per cent as Processing & Preservation Capacities.
compared to 4.90 per cent in Agriculture during the
same period.Awell-developed food processing sector 4.4.8 SAMPADA Mission will promote all the segments
with higher level of processing helps in the reduction of food processing from infrastructure to forward
of wastage, improve value addition, promote crop linkage at the front end of the supply chain and will
diversification, ensure better return to the farmers, provide a big thrust to the growth of this sector.
promote employment as well as increases export

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Chapter-5

MEGA FOOD PARKS

5.1 MEGA FOOD PARKS Nadu was also cancelled due to SPV’s inability to
implement the project. 3 projects of this phase in
The Scheme of Mega Food Park envisages a well- Andhra Pradesh, Karnataka and Uttarakhand have
defined agri/ horticultural-processing zone containing state- been completed. Out of the remaining 5 projects of
of-the art processing facilities with support infrastructure this phase, 4 projects in Assam, Jharkhand, Punjab
and well-established supply chain. and West Bengal have also become operational and
the project in Maharashtra is under implementation.
5.2. Objectives
ii. The CCEA further approved setting up 5 more
The objectives of the scheme are as follows: Mega Food Parks in November, 2010 during 2nd
phase of scheme implementation. Final approval
a) To provide modern infrastructure for food has been accorded to all these projects in the States
processing units in the country in selected of Bihar, Gujarat, Madhya Pradesh, Odisha and
clusters to be identified in a demand driven Tripura. However, SPV of the project at Gujarat
manner. has withdrawn from the project and approval to the
project in Bihar has been cancelled. Out of the 3
b) To ensure value addition of agricultural projects of this phase, the project in Madhya Pradesh
commodities including poultry, meat, dairy, have become operational and remaining 2 projects in
fisheries etc. Odisha and Tripura are under implementation.

c) To establish a sustainable raw material supply iii. The CCEA further approved 15 new projects under
chain for each cluster. Mega Food Parks Scheme in October 2011 with
an allocation of Rs.1714 crores. ‘In-principle’
d) To facilitate induction of the latest technology. approval was accorded to 15 most eligible projects in
September, 2012. Out of the 15 projects, 10 projects
e) To address the issues of small and medium have been granted Final approval and In-principle
nature of processing industries through a cluster approval to 5 projects has been cancelled. However,
approach with stakeholders managing the supply out of the finally approved 10 projects, SPV of the
chain. project in Bemetara District at Chhattisgarh has
withdrawn from the project. Remaining 9 projects of
f) To provide an institutional mechanism for this phase are under implementation.
producers, processors, and retailers to work
together to build the supply chain. iv. In August 2013, the CCEA further approved taking
up 12 more Mega Food Parks during 12th Plan as
Approval of the Scheme per the existing pattern of assistance of 11th Plan. In-
Principle approval was accorded to the 10 waitlisted
i. The Cabinet approved the Scheme of Mega Food projects on 19.12.2013. Out of these projects, 3
Parks in September 2008 with the stipulation to take projects in the States of Telangana, Mizoram and
up 10 projects in the 1st phase out of total 30 Mega Bihar have been accorded Final Approval and In-
Food Parks (MFP) envisaged under the Infrastructure principle approval accorded to 7 projects have been
Development Scheme in the country during 11th Plan cancelled due to non-fulfillment of conditions for
period. Out of these 10 projects, ‘Final Approval’ Final approval in stipulated time. All the 3 projects
was accorded to 9 projects in the States of Andhra of this phase are under implementation.Out of the
Pradesh, Assam, Jharkhand, Karnataka, Maharashtra, total 42 Mega Food Park projects approved by the
Punjab, Tamil Nadu Uttarakhand and West Bengal.
‘Final Approval’ for the project in Uttar Pradesh was
not accorded due to failure of the SPV in meeting
the conditions. Approval to the project in Tamil

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Govt., the Ministry has accorded 34 projects as on 5.3 Pattern of Financial Assistance
31.12.2016.
The scheme shall provide a capital grant at the rate of
v. The CCEA also approved sanctioning of the projects 50 per cent of the eligible project cost in general areas and
against cancellation/ withdrawal of the projects at the rate of 75 per cent of eligible project cost in difficult
approved by the Ministry during the 11th and and hilly areas i.e., North East Region including Sikkim,
12thplan within the plan allocation of the scheme J&K, Himachal Pradesh, Uttarakhand and ITDP notified
as per the 11th Plan pattern of financial assistance areas of the States subject to a maximum of Rs. 50 crore per
of the Scheme. Against the 17 vacant slots, the project. The eligible project cost is defined as total project
Ministry has invited Expression of Interest (EOI) on cost but excluding cost of land, pre-operative expenses and
10.02.2014 for setting up Mega Food Park Projects margin money for working capital.
in the country. In response to this, total 83 proposals
were received. Out of these, 72 proposals were found 5.4 Current status of Implementation
eligible to be appraised. ‘In-principle’ approval was
accorded to 16 projects. Out of these projects, 12 During the financial year 2016-17 (as on 31.12.2016),
projects have been granted Final approval and In- Ministry has released grant-in-aid of Rs.197.17 crore to the
principle approval to 4 projects has been cancelled. ongoing Mega Food Park projects. Status of implementation
However, out of the finally approved 12 projects, 1 of the 34 projects is at Annexure-III. Eight Mega Food
project in District Buxar at Bihar has been cancelled Park projects at Haridwar (Uttarakhand), Chittoor (Andhra
due to SPV’s inability to implement the project. Pradesh), Tumkur (Karnataka), Fazilka (Punjab), Nalbari
(Assam), Khargone (Madhya Pradesh), Ranchi (Jharkhand)
vi. A Special Fund of Rs. 2000 crore has been setup and Murshidabad (West Bengal) have become operational.
in NABARD by the Central Government to make About 38 units are functioning in these parks providing
available affordable credit to designated food parks employment to more than 23,399 people directly and
and agro-processing units in the designated Food indirectly. In addition, approximately 4 lakhs peoples
Parks. Any Entrepreneur, Cooperative, SPV, Joint are getting employment through franchises, dealership/
Venture, State Government etc. may avail loan distributorship etc. Four more mega food parks projects are
at concessional rate of interest from this fund for likely to be completed by the end of the current financial
establishing food parks and food processing units in year.
the Designated Food Parks. NABARD has already
notified operational Guidelines of the Fund. Based 5.5 Modification of the Mega Food Park Scheme
on the information received from State Governments, guidelines
Designated Food Parks have been notified (the
consolidated list of 157 Designated Food Parks) by The detailed guidelines for the scheme were issued
the Ministry on 22.09.2016. on 24.08.2008 and subsequently revised on 19.12.2009,
17.11.2011, 01.10.2012, 10.02.2014 and 21.07.2016. Based
vii. The Ministry invited Expression of Interest (EOI) on the experience of implementation, modifications in the
on 31.07.2016 for setting up Mega Food Park Scheme guidelines have been carried out from time to time.
Projects in the country against the vacant slots and The Scheme guidelines of Mega Food Parks have been
cancellation of the projects. The last date for receipt uploaded on the Ministry’s website www.mofpi.nic.in for
of proposals was initially fixed as 15.09.2016, information of all concerned.
which was extended to 07.10.2016. 54 proposals
were received from 19 States against this EoI and 5.6 Co-ordination Mechanism
found eligible for further appraisal. These proposals
have been considered / scrutinized by IMAC in its i. With a view to have more effective coordination
meeting held on 07.12.2016, 09.12.2016, 15.12.2016 with the State Governments, the State
& 28.12.2016 for according ‘In-principle’ approval. Governments have been requested to nominate
The list of 8 projects which have been granted in- an officer as Ministry nominee Director in the
principle approval has been uploaded on the website Board of those SPVs.
of the Ministry.
ii. PMA also co-ordinates with the SPV for
facilitating smooth implementation of the

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project and monitoring the progress closely and a grant of up to 25% of the project cost subject to a maximum
periodically. of Rs.4.00 crore in general areas and @ 33.33% in difficult
areas including North- Eastern States, J&K, and Himachal
iii. Ministry co-ordinates with State Govt. authorities Pradesh & Uttarakhand was provided. The Ministry had
to facilitate various statutory clearance and approved 56 Food Parks during 8th to 10th Plan Period. Out
acquisition of land by SPV. of 56 Food Parks, 32 Food Parks have been funded fully
which are also functional, 15 have been funded partially
iv. A District level Mega Food Park Co-ordination which are at various stages of implementation and 9 Food
Committee under the Chairmanship of the Park projects have been closed due to non-implementation
District Collector has been constituted for each of the projects by the implementing agencies. This scheme
Mega Food Park to ensure smooth progress in was subsumed in the National Mission on Food Processing
implementation of the projects. to be implemented by the State/ UT governments for
providing balance financial assistance for the incomplete
5.7 FOOD PARKS projects.

The Scheme of Food Parks was under implementation However, the NMFP has since been de-linked from Central
during 8th to 10th Plan Periods. The scheme envisaged Government support with effect from 01.04.2015, except
creating of common infrastructure facilities for the Food for UTs (upto 31.03.2016).
Processing Industries, especially, SMEs. Under the Scheme,

Indus Mega Food Park
Khargone, Madhya Pradesh

Indus Mega Food Park at Khargone in Madhya Pradesh (PPCs) to feed processing activities at the CPC has been
has been set up with the assistance of MoFPI under set up in different locations in the catchment area. The
the Mega Food Parks Scheme which was inaugurated project has state-of-the-art processing infrastructure like
by Smt. Harsimart Kaur Badal, Hon’ble Minister of cold storage, dry warehouse, instant quick freeze (IQF),
Food Processing Industries, Government of India and quality testing lab and other processing facilities for
Shri Shivraj Singh Chouhan, Hon’ble Chief Minister of fruits & vegetables. In addition, to facilitate processing
Madhya Pradesh on 12th Feb., 2016. activities, the CPC is equipped with a host of enabling
basic infrastructure facilities like roads, drainage, water
The project has been built at a cost of approximately Rs. & electricity supply including captive power plant, ETP
127.70 crore. The Central Processing Centre (CPC) is and telecommunication.
spread over 53.78 acres inVillage Panwa,Tehsil Kasarwad
(Khargone district) and three Primary Processing Centres

CPC has approximately 24 acres of leasable area of
plots for setting up food processing units. The project
is expected to employ approx. 570 people (direct and
indirect). Once the PPCs are fully operational, immense
benefits will accrue to the farmers through complete
backward and forward linkages.

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Jharkhand Mega Food Park
Ranchi, Jharkhand

Jharkhand Mega Food Park at Ranchi in Jharkhand infrastructure facilities like roads, drainage, water &
has been set up with the assistance of MoFPI under the electricity supply including captive power plant, ETP
Mega Food Parks Scheme which was inaugurated by and telecommunication.
Smt. Harsimart Kaur Badal, Hon’ble Minister of Food
Processing Industries, Government of India and Shri
Ragubar Das, Hon’ble Chief Minister of Jharkhand on
15th Feb., 2016.

The project has been built at a cost of approximately
Rs. 114.73 crore. The Central Processing Centre (CPC)
is spread in 51.50 acres at Village Getalsud, (Ranchi
district) and three Primary Processing Centres (PPCs)
to feed processing activities at the CPC has been set
up in different locations in the catchment area. The
project has state-of-the-art processing infrastructure
like Multi Chamber Cold storage, Dry Warehouse,
Vegetable Dehydration Line, Quality Control Testing
Lab etc. In addition, to facilitate processing activities,
the CPC is equipped with a host of enabling basic

CPC has approximately 29 acres of leasable area of plots
for setting up food processing units. Once the PPCs
are fully operational, immense benefits will accrue to
the framers through complete backward and forward
linkages.

Jangipur Bengal Mega Food Park
Mrushidabad, West Bengal

Jangipur Bengal Mega Food Park at Murshidabad in West Rs. 132.71 crore. The Central Processing Centre (CPC)
Bengal has been set up with the assistance of MoFPI under is spread over 82.11 acres at Mouza: Katnai & Kulori,
the Mega Food Parks Scheme which was inaugurated by Raghunathganj 1 Block, Subdivision Jangipur, (District
His Excellency, The President of India, Shri Pranab Murshidabad) and six Primary Processing Centres (PPCs)
Mukherjee in the presence of Hon’ble Governor of West to feed processing activities at the CPC has been set up in
Bengal, Shri Keshari Nath Tripathi and Hon’ble Union different locations in the catchment area. The project has
Minister for Food Processing Industries, Smt. Harsimart state-of-the-art processing infrastructure like Warehouse,
Kaur Badal, on 24th Aug., 2016. Multi Crop Storage, Potato Cold Storage, IQF & Pulping
line, Deep Freeze, Quality control lab etc. In addition, to
The project has been built at a cost of approximately facilitate processing activities, the CPC is equipped with

67

a host of enabling basic infrastructure facilities like roads, CPC has approximately 46 acres of leasable area of plots for
drainage, water & electricity supply including captive setting up food processing units. Once the PPCs are fully
power plant, ETP and telecommunication. operational, immense benefits will accrue to the framers
through complete backward and forward linkages.

Stockholder certification on FPI

Meeting foreign delegations

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71

Chapter-6

SCHEME FOR COLD CHAIN AND VALUE ADDITION
INFRASTRUCTURE

To encourage setting up of backward & forward (a) For storage infrastructure including Pack House
linkages in the agricultural supply chain in the country, to and Pre cooling unit, ripening chamber and
minimize the post-harvest losses and to enhance the value transport infrastructure, grant-in-aid @ 35% for
addition in the agricultural produce, Ministry of Food General Areas and @ 50% for North East States,
Processing Industries had launched the Scheme of Cold Himalayan States, ITDP Areas & Islands, of the
Chain, Value Addition and Preservation Infrastructure total cost of plant & machinery and technical
in the year 2008 so as to create integrated supply chain civil works will be provided.
infrastructure in the country.
(b) For value addition and processing infrastructure
6.1 SALIENT FEATURES OF THE SCHEME including frozen storage/ deep freezers
associated and integral to the processing, grant-
• Scheme provides for integrated and complete in-aid @ 50% for General Areas and @ 75%
cold chain facilities without any break from the for North East States, Himalayan States, ITDP
farm gate to the consumer. Stand-alone facilities, Areas & Islands, will be provided.
except irradiation facility will not be considered
for assistance. (c) For irradiation facilities grant-in-aid will be
provided @ 50% for General Areas and @ 75%
• Both horticultural and non-horticultural produce for North East States, Himalayan States, ITDP
are eligible for support under this scheme. Areas & Islands.

6.2 COMPONENTS OF THE SCHEME Note: (i) Maximum grant-in-aid would be Rs. 10 crore
per project.
Guidelines of the scheme have been revised on
29.08.2016. The scheme allows flexibility in project (ii) The grant will be provided only in respect
planning with special emphasis on creation of cold chain of technical civil works and eligible plant &
infrastructure at farm level. The scheme has the following machinery.
project components:-
(iii) Cost norms of Mission for Integrated
(a) Farm Level Infrastructure, situated in the Development of Horticulture (MIDH) issued
catchment area of the targeted produce. by Department of Agriculture, Co-operation
and Farmers Welfare will be followed wherever
(b) Distribution Hub available. For facilities not covered under
MIDH guidelines, cost norms as determined by
(c) Refrigerated/Insulated transport. the Ministry will be followed.

d) Irradiation facility. 6.4 PROGRESS OF THE SCHEME:

To avail financial assistance, the applicant has to set • During the 11th plan period, Government had
up farm level infrastructure as a mandatory component and approved taking up of 79 cold chain projects for
any one or both of the components from (b) and (c) above. financial assistance by the Ministry in 3 phases.
In view of its functional nature, the irradiation facility can The Ministry had sanctioned 74 cold chain projects
be set up as a standalone component for the purpose of for financial assistance. Subsequently, the Ministry
availing grant under the scheme. cancelled 19 projects mainly due to very slow
progress of implementation. Thus, 55 cold chain
6.3 PATTERN OF ASSISTANCE

As per revised scheme guidelines, the scheme will
have two types of pattern of financial assistance:-

72

projects were taken up for implementation from 11th 6.5 Cold chain infrastructure capacity:

Plan. • The cold chain infrastructure expected to be

• CCEA in its meeting held on 08.08.2013 created by the approved 135 cold chain projects

approved taking up of 75 cold chain projects are as follows:

with the financial outlay of Rs786 crore. Out I. 5.01 lakh MT of Cold Storage, Controlled
of the 75 approved projects by the Government, Atmosphere (CA) / Modified Atmosphere (MA)
sanction letters were issued to 66 projects. Out storage, Deep Freezer
of 66 projects, 16 projects have been cancelled/

withdrawn mainly due to very slow progress II. 116.40 MT per hour of IQF,
made by the promoters.

• To fill up the vacant slots created out of III. 52.65 LLPD per day of milk processing/storage

cancellation/withdrawal of proposals pertaining IV. 766 numbers of reefer vehicles.

to previous phases, the Ministry had issued an • Cold chain infrastructure created by the
Expression of Interest on 02.12.2013. Out of 153 completed cold chain projects till 31.12.2016 is
proposals received against the EOI, 30 projects as follows:
had been sanctioned for financial assistance in

May, 2015. I. 3.35 lakh MT of Cold Storage, Controlled

• As on 15.01.2017, 135 projects have been taken Atmosphere (CA)/ Modified Atmosphere (MA)
up for implementation with 3 vacant slots. Of storage, Deep Freezer.

the 135 projects 93 have been completed and 42 II. 78.90 MT per hour of IQF
are at various stages of implementation.

• EFC has approved taking up of 100 new III. 38.85 LLPD Milk processing/storage

integrated cold chain projects in the FY 2016- IV. 514 numbers of reefer carriers.

17. Expression of Interest has been issued on 6.6 Financial progress of the scheme:
31.10.2016 for inviting proposals for taking

up 100 new cold chain projects for grant of During the 11th Plan, the expenditure for the scheme
financial assistance with last date as 15.11.2016. was Rs. 157.08 crore. The outlay for 12th Five Year Plan
The Ministry has received 308 proposals. is Rs. 786.00 crore. Year-wise budget allocation and

• The status of implementation of cold chain expenditure is as follows:

projects is at Annexure-IV. (Rs. in Crore)

Year BE RE Expenditure

2012-13 86.00 81.37 81.19
2013-14 100.00 103.75 103.73
2014-15 160.00 153.37 153.37
2015-16 181.00 180.50 160.36
2016-17 (As on 20.01.2017) 158.23 174.14 138.82
637.47
Total

6.7 Cold Chain projects under National Mission on 6.8 Modifications in the scheme:
Food Processing (NMFP):
Based on extensive feedback and consultations
NMFP has been delinked from Central Assistance with stakeholders, the guidelines of the scheme have been
from 2015-16.

73

revised w.e.f. 29.08.2016. Salient features of the revised • Penalty clause for delay in implementation has been
scheme guidelines are as under: introduced.

• Setting up farm level infrastructure is now mandatory. 6.9 Requirement of Cold Chain/Cold Storage:

• Facilities like Integrated Pack-house (with • One of the main reasons for the high losses in
mechanized sorting & grading line/ packing line/ the supply chain of perishables is the absence of
waxing line/ staging cold rooms, etc.), Ripening adequate and efficient cold chain infrastructure
Chamber(s), Cold Storage Unit(s), Controlled right from the farm gate to the consumers. In a
Atmosphere (CA) storage, Frozen Storage/Deep repeat study conducted by the Central Institute
freezers, IQF line, Tunnel Freezer, Spiral Freezer, of Post-Harvest Engineering & Technology
Blast Freezer, Plate Freezer, Vacuum Freeze Drying, (CIPHET), Ludhiana during 2012-14 on behalf
Milk Chilling / Bulk Milk Cooling/ Milk Processing of Ministry of Food Processing Industries on
Unit, Poultry/Meat/Marine/Fishery Processing Assessment of Quantitative Harvest and Post-
Unit, Packaging line for chilled /frozen/temperature Harvest Losses of Major Crops and Commodities
controlled products are eligible for grant-in-aid. in India, average range of losses for food grains,
oils seeds and fruits & vegetables were found to
• The scheme envisages financial Assistance @ 35% be between 4% to 16% resulting in annual loss
& 50 % of the Total cost of plant & Machinery of Rs. 92,651 crore.
and technical civil work for storage and transport
infrastructure for general area & for North East • Dr. Saumitra Chaudhuri Committee constituted
States, Himalayan States, ITDP Areas & islands by the erstwhile Planning Commission in 2012
respectively. For value Addition and processing had indicated cold storage requirement of 61
infrastructure grant-in-aid @ 50% & 75% for general million tonnes. The present capacity of cold
area and for North East States, Himalayan States, storage is estimated at around 32 million tonnes
ITDP Areas & islands respectively is envisaged. in the country. Thus the present gap is around 29
million tonnes.
• Term loan at least 20% of project cost is mandatory.
• National Centre for Cold Chain Development
• Promoter’s equity of at least 20% in general areas (NCCD) - an autonomous body under the
and 10% in difficult areas is mandatory. Department of Agriculture, Cooperation and
Farmers Welfare - has undertaken a study on
• Second proposal is allowed if existing project is All India Cold Chain Infrastructure Capacity
successfully implemented for 2 years. (Assessment of Status and Gap) in August, 2015.
As per the study the cold chain requirement in
• Pattern of release of grant is now 25%, 40% and 35% the country stands as follows:-
as 1st, 2nd and 3rd installment respectively as against
the earlier pattern of 25%, 50% and 25% respectively

S. No. Component Existing Capacity Approximate Requirement

1. Integrated Pack Houses 250 numbers 70,000 numbers
2. Reefer Trucks < 10,000 numbers 62,000 numbers
3. Cold store (Bulk & distribution hubs) 32 million tonnes 35 million tonnes
4. Ripening Chambers 9000 Numbers
800 numbers

The above said gap study has excluded milk, 6.10 Task Force on Cold Chain Projects:
meat, marine and processed products (easily perishable)
for working out the requirement of cold chain To accelerate the availability of cold storage and to
infrastructure. improve the efficiency of Cold Chain Management a Task

74

Force under the Chairmanship of Secretary, Ministry of Food alia, observed that cold chain projects have contributed
Processing Industries was set up by the Prime Minister’s positively to turnover, employment creation and exports.
Office with a view to re-visit the strategies, financials and There is an apparent economic impact in the catchment area
incentives of all cold storage/ cold chain related schemes and where such projects have been set up in terms of saving
recommend institutional mechanism for enhancing capacity wastage, increase in farm gate prices and establishment of
of cold chain in the country. The Committee submitted their backward linkages. With the establishment of cold chain
report on 31.10.2014 to the Govt. The Committee had inter projects, under the trading model, the farmers have been
alia, recommended that the Govt. should aim at creating benefited, in terms of assured price, risk avoidance, assured
an additional capacity of 7.5 million tonnes over the next market and reduction in wastages.
05 years with fund allocation of Rs. 6100 crore. Out of
this 7.5 million capacity, 5 million tonnes may be created 6.12 Conferences/Seminars/Events Organized on Cold
together by National Horticulture Mission (NHM) & Chain Infrastructure:
National Horticulture Board (NHB) under the Mission for
Integrated Development of Horticulture (MIDH) scheme of I. The Ministry in association with Indian Chamber
Department of Agriculture, Cooperation & Farmers Welfare of Commerce had organized a National Cold
and 2.5 million tonnes under the scheme of the Ministry of Chain Summit on 1st July, 2016 in Lucknow,
Food Processing Industries. Uttar Pradesh. The Summit was inaugurated
by Hon’ble Minister of State, Food Processing
6.11 Impact Evaluation Study: Industries. The Summit focused on the necessity
of developing integrated cold chain to arrest
A Study on “Evaluation of the impact of the post harvest losses and creation of logistic
Scheme for Cold Chain, Value Addition and Preservation infrastructure and management.
Infrastructure of Ministry of Food Processing Industries”
was awarded to M/s NABARD Consultancy Services II. Ministry had organized Cold Chain Summit
Pvt. Ltd. (NABCONS). The study report was accepted 2016 – North Eastern Region at Shillong in
by Ministry in October, 2015. The report has, inter association with ASSOCHAM, Kolkata on 4th-
5th October, 2016.

Hon’ble Union Minister, FPI, addressal on #FDI proposals in #Food Processing sector

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77

Chapter-7

Setting up / Modernization of Abattoirs:

7.1 The issue of ensuring hygienic meat production in • More humane treatment of animals/minimizing
the country has to be seriously considered. There is transportation of animals.
a need for setting up / modernization of municipal
abattoirs as the domestic meat market is fed by • Better by-product utilization/value addition.
abattoirs owned/licenced by municipal bodies.
These municipal abattoirs generally lack modern • Providing chilling facility to prevent microbial
equipment, proper sanitation/hygiene, facilities activity in slaughtered animals.
for scientific slaughtering, waste management
and pollution control. Quality and hygiene levels • Better hygiene, safety and retail cold chain
are low resulting in contamination / deterioration management.
of meat, cruelty to the animals, wastage of meat
and pollution of adjoining areas, water bodies and • Better forward linkage facility for finished meat
rivers. Modernization of these abattoirs is needed for and meat products.
production of clean, wholesome and hygienic meat
required for domestic consumption. The qualitative 7.4 Salient features of the scheme:
and quantitative capacities of the abattoirs need to
be upgraded besides discouraging slaughtering in • The scheme will be implemented with
unauthorised locations.
involvement of local bodies (Municipal
7.2 It is imperative that the slaughter houses supplying
meat to the domestic consumers have the basic Corporations and Panchayats)/Public Sector
minimum requirements such as proper lairage
facilities, proper flooring, carcass hanging/flaying Undertaking/Co-operatives/Boards under
facility, adequate water supply and lighting with
proper wastage disposal system. This has to be Government and will have flexibility for
ensured by the State Governments and the local bodies
since most of the abattoirs are owned/operated or facilitating involvement of private investors on
licensed by the local bodies. However, Government
of India has to play its part in assisting the States public- private partnership basis.
in fulfilling this objective. Hence the Plan Scheme
for establishing new abattoirs and modernizing of • Land for abattoirs will be contributed by the
existing abattoirs was started in the 11th Five Year Panchayats/Urban Local Bodies/State Agencies.
Plan.
• Professional agencies have been engaged as
7.3 Objectives of the scheme: Project Management Agency (PMA) to assist the
Ministry in project appraisal, implementation
• Scientific and hygienic slaughtering of the and monitoring of projects.
animals.
7.5 Pattern of financial assistance:
• Application of modern technology for slaughter
waste management and pollution control. Financial assistance (grant-in-aid) for setting up of
new abattoirs is provided at 50% of cost of plant
& machinery and technical civil work (TCW) in
general areas subject to maximum of Rs. 15 crore for
each project. For difficult areas, the ceiling is 75% of
cost of plant & machinery and technical civil work
subject to maximum of Rs 15 crore for each project.

78

The difficult areas are North East States including these, 8 projects have been promoted by municipal bodies
Sikkim, Jammu & Kashmir, Himachal Pradesh, of Dimapur (Nagaland), Kolkata (West Bengal), Ranchi
Uttarakhand and ITDP notified area of the States. (Jharkhand), Patna (Bihar), Shimla (Himachal Pradesh),
Hyderabad (Andhra Pradesh) and Majhitar (Sikkim). One
7.6 Approval of the Scheme project is promoted by J&K Sheep and Sheep Products
Development Board, Srinagar (Jammu and Kashmir) and
During financial year 2008-09, setting up of 10 new another in Ahmednagar (Maharashtra) by Ahmednagar
abattoirs was approved by the Government. Approval District Goat Rearing and Processing Co-operative
Committee accorded approval for setting up of 9 new Federation Ltd. Subsequently due to on-implementation,
abattoirs during the year 2008-09 and remaining one was assistance approved for one abattoir project at Patna, Bihar
approved during the year 2010-11. Subsequently due to has been cancelled and therefore now approved number
on-implementation, assistance approved for one abattoir stands at Nine (09).
project has been cancelled and therefore now approved
number stands at Nine (09). The projects at Dimapur, Ahmednagar, Kolkata,
Shimla and Hyderabad have been completed. The status of
7.7 Upscaling of the Scheme during 12th Plan implementation of 9 Abattoir projects is given in Annexure-
V(A).
A proposal for upscaling of the scheme was approved
to cover setting up of 25 new abattoirs and modernization Approval Committee under the Chairmanship
of 25 existing abattoirs at a total project cost of Rs 330.84 of Secretary, FPI, in its meetings held on 08.04.2013,
crore, inclusive of committed liabilities in respect of on- 21.11.2013, 18.12.2013, 07.01.2014, 04.03.2014,
going projects of 11th Plan. 22.09.2014, 10.11.2014, 16.02.2015 and 22.01.2016, has
accorded approval for thirty one more abattoir Projects
Operational Guidelines for the Scheme were modified during 12th Plan.
for 12th Five Year Plan to widen the eligibility to cover
projects promoted by Public Sector Undertakings, Co- The status of these 31 abattoir projects is given in
operatives and Boards under Government. This amendment Annexure-V(B).
is intended to provide flexibility to State Governments in
taking up abattoir projects. 7.9 Financial Progress:

7.8 Status of project implementation Grant-in-aid amounting to Rs. 40.93 crores was
disbursed during 11th Plan (i.e. during 2008 to 2011). The
The Ministry of Food Processing Industries had allocation for 12th Plan Five Year Plan is Rs. 300 crore.
taken up 10 projects under this scheme during 11th Plan. Of Year-wise expenditure is as under:

Year BE RE Expenditure
2012-13 19 9.62 9.58
2013-14 31 27.72 25.80
2014-15 35 12.32 10.29
2015-16 27 27 27.71
2016-17 31 Yet to be received 17.08

79

7.10 Scheme for Setting up / Modernization of 7.11 Success Story:
Abattoirs under NMFP
Modernization of abattoir at Usgaon, Ponda, Goa by
The scheme was transferred to the State Governments Goa Meat Complex Limited (GMCL) (Govt. of Goa
for implementation under the Centrally Sponsored Scheme Undertaking)
of National Mission on Food Processing (NMFP) with
effect from 1.04.2014. Proposals received up to 31.03.2014 Ministry had approved the project for Modernisation of
are being processed by the Ministry under the Central Sector abattoir at Usgaon, Ponda, Goa by Goa Meat Complex
Scheme. Fresh proposals with effect from 01.04.2014 Limited (Govt. of Goa Undertaking) on 08.04.2013 with
are to be submitted to State Governments. However, the capacity of large animals - 300 per day. Total Cost of the
Centrally Sponsored Scheme of NMFP has been delinked Project was Rs. 1300 lakh. Ministry had released grant-
from Central support from BE 2015-16. in-aid of Rs. 617 lakh for the project. The project has
been completed, commissioned and put in operation on
31.05.2016.

Monthly Swaccha Bharat Pledge

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Chapter-8

SCHEME FOR TECHNOLOGY UPGRADATION/
ESTABLISHMENT / MODERNIZATION OF FPI

OVERVIEW are received/ sanctioned and funds are released by the
respective State/ UT Governments.
Ministry has been implementing the Scheme of
Technology Upgradation / Establishment/ Modernization In 12th plan under National Mission on Food
of Food Processing Industries since 9th Plan .Under this Processing (NMFP) all the state /UT Governments have
Scheme, Ministry extended financial assistance to food been empowered to receive, sanction and release funds
processing units including fruits and vegetables units in for all the new applications as per the 12th plan guidelines
the form of grants-in-aid to the implementing agencies/ of Technology Upgradation Scheme of Mission. The
entrepreneurs @ 25% of the cost of plant & machinery and eligible sectors for setting up of Food Processing units are
technical civil works subject to maximum of Rs. 50 lakhs in Consumers, Bakery, Dairy, Fish, Wine & Beer, Fruits &
general areas and 33.33% up to a maximum of Rs. 75 lakhs Vegetables, Meat, Oil, Pulse, Rice and Flour Milling under
in difficult areas. the Scheme.

Scheme of Technology Upgradation/ Establishment/ All the eligible Food Processing Units under various
Modernization of Food Processing Industries has been sub-Sectors were provided financial assistance in 11th
subsumed in the newly launched Centrally Sponsored plan under Central Sector @25% of the cost of plant and
Scheme-National Mission on Food Processing (NMFP) machinery and technical civil works subject to a maximum
w.e.f 12th Plan (2012-17). Accordingly, during 12th Five of Rs. 50.00 lakhs in general areas, and @33.33% subject
Year Plan w.e.f. 1.4.2012 and onwards no new applications to maximum of Rs. 75.00 lakhs in difficult areas such as
for setting up of Food Processing units are received in the Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Sikkim
Ministry. and North-Eastern States, A&N Islands, Lakshadweep and
ITDP areas in the country.
At the beginning of 12th Plan (1.4.2012), there
was a committed liability of Rs.740 crores for 3168 Presently the Ministry is liquidating 11th plan
cases. However, the Scheme of TechnologyUpgradation / spillover liabilities of the above scheme. During 2016-17
Establishment/ Modernization of food Processing Industries the expenditure achieved and cases assisted sub sector-wise
has been subsumed in centrally sponsored scheme – up to 10.01.2017 are given below:-
National Mission on Food Processing (NMFP) during 12th
Plan to be implemented through State/ UT Governments Financial assistance provided to the Food
w.e.f. 01.04.2012. Now the applications under the Scheme Processing unit during 2016-17 subsector-wise under
the Scheme of Technology Upgradation/ Establishment/
Modernization of Food Processing Industries

S. No. Sector Sanctioned Cases of Sanctioned Cases of IInd Total Sanctioned Cases (as on
Ist Installments Installments 10.01.2017)
1 BAKERY
PRODUCTS Nos. Amount Nos. Amount [In Nos. Amount
[In Cr.] Cr.] [In Cr.]
2 CONSUMER
INDUSTRIES 17 2.90 38 6.88 55 9.77

15 3.04 56 9.72 71 12.76

84

3 DEEPSEA 2 0.50 2 0.50 4 1.00
FISHING
AND FISH 5.15 101 19.39
PROCESSING 0.00 5 1.06
0.75 27 5.59
4 FRUIT AND 27 0.12 12 1.54 128 24.54
VEGETABLES 0.15 6 0.46
1.16 51 6.05 5 1.06
5 MEAT AND 0 0.00 2 0.12
POULTRY 13.77 300 51.31 30 6.34

6 MILK AND DAIRY 3 13 1.66
PRODUCTS 7 0.61
60 7.21
7 OIL MILLING 1 2 0.12
65.07 375
8 PULSE MILLING 1

9 RICE MILLING 9

10 WINES & BEER 0

Total 75

In the 12th Plan, the Ministry is liquidating the expenditure incurred so far and the number of units assisted
spillover liabilities of the 11th Plan in the scheme. The is as under:

Year Funds released (Rs. in crore) Units Assisted
2012-13
2013-14 186.19 1232
2014-15 162.08 996
2015-16 144.72 889
99.12 562
Total 65.07 375
657.18

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Chapter-9

Scheme for Human Resource Development

Ministry of Food Processing Industries (MoFPI) focuses on developing technologists, managers,
has been implementing the Scheme for Human Resources Entrepreneurs and manpower for quality
Development since 9th Plan and onwards to augment the management in Food Processing. The scheme also
supply of trained manpower/personnel at all levels for aims at development of rural entrepreneurship
food processing sector namely entrepreneurs, managers, and transfer of technology for processing of food
salespersons, floor workers etc. products by utilizing locally grown raw material and
providing “Hands-on” experience at such production
During the 12th Five Year Plan (2012-17) the HRD cum training centres, while according priority to SC/
Scheme has been subsumed under the National Mission ST/OBC/women and minorities’ candidates.
on Food Processing (NMFP), which is being implemented
through State/ UT Governments. Ministry is processing the Eligibility: Central / State Govt. Organizations,
proposals of spillover liabilities of 11th plan during the 12th Educational and Training Institutions, ITIs, NGOs
plan as per the guidelines of 11th plan as detailed below: and Co-operatives will be eligible for grant to set
up FPTC. Under the scheme, the Ministry provides
The following are the components in the HRD Schemes: grant-in-aid of Rs. 4.00 lakh for purchase of plant and
machinery and Rs. 2.00 lakh as revolving seed capital
(a) Creation of Infrastructure Facilities in Academic for setting up of single product line FPTC. For multi
Institutions product line the Ministry provides grant-in-aid of Rs.
11.00 lakh for purchase of plant and machinery and
The Ministry is implementing a Scheme for Rs. 4.00 lakh for seed capital assistance.
assistance to academic institutions like Central/State
Governments organizations, reputed Universities/ (c) Entrepreneurship Development Programme (EDP)
Colleges, Technical Institutions for creation of
infrastructure facilities. The objective of the The Ministry has been providing Financial
programme is to develop technologists, mangers Assistance for conduct of EDPs in food processing
and entrepreneurs in food processing sector, to through Central/State Governments Organizations,
upgrade skills of existing personnel through training R & D Institutes, Universities, SNAs & NGOs. The
programme and to develop manpower in quality objective of EDP is to enable trainees to establish
management. commercially viable enterprises in Food and Agri
processing sector by providing basic knowledge
Quantum of assistance is provided to a maximum of project formulation and management including
of Rs. 75 lakh for creation of infrastructure; like technology and marketing, motivating the trainees
technical / academic books/journals including online and instilling confidence in them, educating on the
publications, laboratory equipments, pilot plant etc. opportunities & financial assistance available and
Amount of assistance for technical / academic books providing escort services to enable them to avail
and subscriptions for journals including e-journals / credit facilities from banks/financial institutions
magazines on related subjects will not exceed 10% and other support services from the development
of equipment cost. organizations. The duration of the EDP is 6 weeks
with a follow-up phase of 12 months and the number
Eligibility: All recognized Universities / Colleges of trainees should not be less than 25. Maximum
whether in Govt. or private sector. financial assistance of Rs. 2.00 lakh per EDP is
provided.
(b). Food Processing and Training Centres (FPTC)

The Scheme for Human Resource Development

88

Eligibility: All Central / State Government organizations, Physical & financial achievements under different
R&D institutions, Universities, reputed NGOs. components of HRD scheme during 11th Plan and upto
31.12.2016 (12th plan) committed liabilities**:

S. Scheme 11th Five Year 2012-13 2013-14 2014-15 2015-16 (Rs. in Lakh)
No Plan No. *Fin. No. *Fin. No. *Fin. No. *Fin. 2016-17
8 55.32 3 31.83 1 14.55 1 13.61 No. *Fin.
No. Fin. 5 272.3 0 255.42 0 1.61
3 106.7 3 134.88
1. Setting up of Food 159 617 10 77.65 3 30.97 0 42.50
Processing Training 62 236.4 67 211.15 364.5 300
Centre 0 10.04
398.42 377.86
2. Creation of 34 2392.4 54.15
infrastructure
facilities under the
scheme of HRD

3 Entrepreneurship 994 1282.8
Development
Programmes

Total 4292.2

* Amount indicated also includes 2nd/3rd installment of Note: The above said scheme has been subsumed in
grant. the National Mission on Food Processing in 12th Plan
(2012-17)
**Expenditure under HRD scheme pertains to committed
liabilities of 11th plan.

Hon’ble Union Minister (FPI) with the Ambassador of Japan to India

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91

Chapter-10

QUALITY ASSURANCE SCHEME

The Ministry is implementing a Scheme for Quality (B) Objectives of the Scheme:
Assurance. The Scheme has two components:
The major objectives of the Scheme are:
• Setting up/Up-gradation of Quality Control/Food
Testing Laboratories. (a) To establish a surveillance system for monitoring
the quality and composition of food
• Implementation of HACCP/ISO 22000, ISO 9000/
GHP/GMP Quality/Safety Management System in (b) To analyse the samples received from processing
food processing units and industries and other stakeholders.

10.1 FOOD TESTING LABORATORIES (FTL): (c) To reduce the time for analysis of samples by
reducing transportation time of samples.
(A) Need for focus on FTL:
(d) To ensure compliance with international and
There is requirement for the food processing industry domestic standards on food in case of exports as
to (a) test domestic production in order to ensure well as imports.
that it complies with domestic standards as well as
international standards for exports and (b) test all (C) Implementation of Food Testing Laboratory
imports coming into the country to ensure that they Scheme through ICAR:
are of the requisite standard and such products as are
not permitted for manufacture domestically are not Indian Council of Agricultural Research (ICAR)
allowed to come in from foreign markets. The level under the Ministry of Agriculture & Farmers
of contaminants, additives, and pesticide residues in Welfare, Department of Agricultural Research &
food items has to be monitored regularly. Therefore, Education (DARE) was entrusted the Food Testing
a network of food testing and analysis laboratories Laboratory (FTL) Scheme during the 12th Plan with
is required to support the Food Safety regulatory effect from 01.04.2012. It has since been decided to
activities and help the food processing industry in implement the Scheme by the Ministry on its own.
regard to quality control measures. The guidelines to this effect are under revision.

10.2 FOOD TESTING LABORATORIES ASSISTED
DURING 11TH PLAN:

S.No Year No of new projects assisted (Physical (Rs. in Lakhs)
Achievement)
1. 2007-08 Amount of grant-in-
2. 2008-09 02 aid released (Financial
3. 2009-10 01
4. 2010-11 08 Achievement)
5. 2011-12 11
07 993.73
Total 29 208.18
980.03
1232.69
1738.53
5153.16

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The financial achievement indicated also includes 2nd and 3rd installment of grant for ongoing cases.

FOOD TESTING LABORATORIES ASSISTED DURING 12TH PLAN:

(Rs. in Lakhs)

S. No Year No of new projects assisted Amount of grant-in-aid released
(Physical Achievement) (Financial Achievement)
1. 2012-13
2. 2013-14 08 859.436
3. 2014-15 14 2472.553
4. 2015-16 12 2304.67
5. 2016-17 11 1758.82
(Up to 31.12.2016) 17 1869.803

Total

The financial achievement indicated also includes 2nd and List of Food Testing Laboratories supported by the Ministry/
3rd installment of grant for ongoing cases. ICAR is at Annexure-VI.

Mega Food Park review meeting

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Chapter-11

FOOD SAFETY AND QUALITY
MANAGEMENT SYSTEMS

The Ministry is operating a Plan Scheme to motivate including ISO 9000, ISO 22000, HACCP, GMP,
the food processing industry for adoption/ implementation GHP.
of food safety and quality assurance mechanisms such as
Total Quality Management (TQM) including, ISO 9000, • To enable adherence to stringent quality and hygiene
ISO 22000, Hazard Analysis and Critical Control Points norms.
(HACCP), Good Manufacturing Practices (GMP), Good
Hygienic Practices (GHP), and prepare them to face the • To enhance product acceptance by buyers in domestic
global competition in international trade. as well as international market.

The objectives of this Scheme are as under: • To keep Indian industry technologically abreast of
international best practices.
• To motivate the food processing industry for adoption
of food safety and quality assurance mechanisms 11.1 HACCP/ISO 22000 PROPOSALS SUPPORTED
such as TQM/Food Safety Management System during 11th Plan

Sr. No. Year No of new projects approved Amount of grant-in-aid released
(Physical Achievement) (` In Lakhs) (Financial Achievement)
1 2007-08
2 2008-09 02 6.80
3 2009-10
4 2010-11 05 54.20
5 2011-12
04 49.10
Total
04 51.60

05 70.70

20 232.40

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HACCP/ISO 22000 PROPOSALS SUPPORTED during 12th Plan (2016-17 upto 31.12.2016)

Sr. No. Year No of new projects approved Amount of grant-in-aid released
(Physical Achievement) (` In Lakhs) (Financial Achievement)
1 2012-13
05 93.11
2 2013-14 05 68.29
06 95.00
3 2014-15 10 164.15
11 190.24
4 2015-16
4 62.00
5 2016-17
(upto Dec., 2016) 41 672.79

6 From Jan.,17 to
Mar.,17 (Projected)

Total

Note: The list of proposals assisted during 2016-17 is at Annexure-VII.

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Chapter-12

RESEARCH & DEVELOPMENT

12.(a) Afocused approach towards R&D in the processed with the issues in the food science area with a
food sector is required on account of following:- view to evolving technological solutions and
new products and processes.
• Reduction of wastage and spoilage of food and
food products. (iii) This in turn is expected to give momentum
to adoption of improved agri-farm practices
• Development of technologies and methods for and increase in the farm productivity thereby
preservation of food products. leading to enhancement of farmers’ income and
generation of employment opportunities.
• Identification of new eco-friendly and better
packaging material and development and 12(c ) Promotion of R&D Scheme- National Workshop
standardization of packaging technologies for on Research & Development:-
food products.
(i) The development of food processing sector
• Fortification of staple food items to improve is critically dependent on Research and
nutritional quality. Development and there is a dearth of market
oriented R&D in the country. To promote
• Change and diversification in food habits, Industry- Academia connect, Ministry of Food
preferences and improvement in consumer Processing Industries (MoFPI) in association
perception towards food safety leading to with Federation of Indian Chambers of
demand for varieties of convenient food with the Commerce and Industry (FICCI) has started
required quality and standards. annual series of R&D workshops in food
processing sector.
• Globalization of trade in processed food sector.
(ii) The first workshop on Research and Development
• R&D for standardization of the process of was organized on 31st July, 2009 at New
preparation, handling, packaging, storage, Delhi. The theme of the workshop was ‘New
transport and distribution of the rich variety Perspectives in Research and Development in
of ethnic and traditional food products of the Food Processing Industries’.
country with greater emphasis towards food
safety. (iii) The second workshop was organized on 25th
November, 2010 at Mumbai. The theme of the
12.(b) Deliverables/Outcome of the R&D Scheme:- workshop was ‘R&D in Food Sector and Global
Challenges and Solutions for Maintaining Food
(i) It would benefit all stakeholders including Safety’.
domestic industry, consumers, exporters,
entrepreneurs, micro, small and medium (iv) The third edition of the workshop was organized
enterprises, academic and research institutions, on 17th November, 2011 at Mumbai with the
food testing laboratories, food standards setting theme, ‘Technology for Value Creation’.
bodies, regulators and government.
(v) The fourth edition of the workshop was organized
(ii) The specific outcome of the R&D scheme on 27th September, 2012 at Mumbai with the
is creation of a shelf of technologies and theme, ‘Open Innovation & Collaborative
innovative products and processes which will Research’.
be available to industry for commercialization.
New products will enter the market and raise (vi) FICCI along with Ministry of Food Processing
the safety and nutritional status of food items. Industries conducted the fifth national workshop
The R&D projects are also aimed at enabling the on Research and Development in Food
scientific community to understand and work

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