The State cabinet on Wednesday took various decisions for even better development of food processing industries in the State. Special financial assistance provisions will be made in state's Industrial Promotion Policy-2014. Due to it, path will be paved for development of several small industries and they would get direct benefits.
Notably, the production of horticulture crops in the state has increased significantly in the last few years. Despite more output, farmers have faced difficulty to get fair price for their produce. Further promotion to horticulture and food processing industries in the state, horticulture products will get better market prices paid to farmers will improve.
In some other states, specific facilities have been provisioned for establishment of food processing units. To attract more units towards Madhya Pradesh, it is necessary that the state's policy is almost similar and more attractive than other states. Therefore, it has been decided to give additional impetus in the state also to food processing units, which are normally based on weather. Madhya Pradesh Industrial Promotion Policy 2014 has been implemented to promote existing industries in the state. To avoid overlapping of Industrial Promotion Policy and Food Processing Policy, incentives offered by the government will be incorporated in Industrial Promotion Policy, 2014 instead of implementing a new Industrial Promotion Policy. It will also meet the objectives of a single-window system of the state government. Specific financial assistance will be available to micro, small and medium enterprises.
For food processing industries, modernization and technical upgrading, 25 per cent cost of capital investment will provided upto maximum Rs 2.5 crore on the investment made in plant machinery and buildings. The assistance will be available for companies investing Rs 25 crore investment and maximum subsidy will not exceed Rs 2.5 crore.
For construction of captive power generation/organic fertilizers for disposal of waste in food processing industries, 25 percent cost on plant and machinery will be reimbursed. This assistance would not exceed Rs 150 lakh.
On the investment made on plant and machinery for cold chain, value addition. preservation infrastructure and refer van for non-horticultural products and dairy products, maximum 50 per cent of the investments upto to maximum of Rs 10 crore will be available as subsidy. This aid will also be paid to major industries.