OBJECTIVE OF A FOOD PROCESSING UNIT:

  • The main objective of the Uttar Pradesh Food Processing Industry Policy – 2017 is to ensure fair and remunerative price of the produce to the growers, value addition to the price of raw produce, promote setting up of food processing industries, easy availability of processed food products to consumers at competitive prices, generation of new employment opportunities to build capacities and increase the skill level of the manpower in this sector and also make available additionally required manpower.
  • Following food processing sectors are eligible to avail the assistance under the scheme:
a) Fruit & Vegetables, flowers, spices, medicinal & aromatic plants and mushrooms.
b) Processed products based on agricultural produce such as food-grains, pulses and oilseeds.
c) Processing of agro-based products like milk powder, baby milk food, malted milk food, condensed milk, ghee, other dairy products, poultry and eggs, meat and meat products.
d) Fish processing.
  • Processing related to bread, oilseed, edible food items, breakfast food , sweets ( including coco processing and chocolate production ), malted extracts, protein isolates, and food items rich in protein, weaning food and
  • extruded food products.
    e) Specialized packaging for food processing industries.
    f) Reefer vehicles/mobile pre-cooling vans.
    g) Creation of infrastructure based on the post-harvest management and agro.
(i) Compound wall, Administrative Office Building, Labor quarters for employees/ workers and any other civil work not directly related to the production and processing.
(ii) Cost of land for the project.
(iii) Fuel, consumables, spares and stores.
(iv) Computers, AC with ducting and allied office furniture.
(v) Personal Transport vehicles.
(vi) Second hand/ old machines / refurbished machinery.
(vii) Expenditure on painting of machinery.
(viii) Stationery items.
(ix) Pre-operative expenses, consultancy Fee, Margin Money, working capital, contingencies and the expenditure made by the applicant on the eligible project cost before the date of issue of sanction / approval letter by the Ministry shall not be considered as part of eligible project cost.  
  • A subsidy amounting to 25 percent of incurred expenditure on plant machinery and technical civil work in respect of setting up, expansion and modernization/up gradation of the food processing units in the state will be provided, subject to a maximum of Rs. 50 lakh in all the districts of the state.
  • Under the Pradhan Mantri Kisan Sampada Yojana Scheme for (Agro-Marine Processing and development Agro-processing Clusters) of Government of India, an additional capital investment subsidy at the rate of 10% of the cost of plant machinery and technical civil works to the fruits & Vegetables Units for setting up of new unit/expansion and modernization will be provided.
  • The Mega Food Park project sanctioned for Uttar Pradesh under the Pradhan Mantri Kisan Sampada Yojana, Government of India with a minimum capital investment of Rs. 50 crore and above, an additional subsidy at the rate of 10 percent of the project cost, will be provided by the State Government.
  • Cent-percent of the rate of interest accrued on the loan taken from banks/financial institutions for meeting the expenditure on plant machinery, technical civil work and spare parts for establishing the micro and small food processing industries will be reimbursed for a maximum period 05 years.
  • Other food processing units setup in the state will be reimbursed the amount of interest accrued on the loan taken for the banks/financial institutions for meeting the expenditure on plant machinery, technical civi works and spare parts, at the rate of 07 percent for a period of 05 years.
    Its maximum limit will be Rs. 50 lakh per year per unit.
    Proviso, in the cases of capital subsidy proposed in the Para 7.1.1 and the loan taken from banks/financial institutions as proposed in the Para 7.1.2, the maximum amount including the interest subsidy will not exceed the limit of Rs. 250 lakh in the period of 05 years.
  • Interest Subsidy for Purchase of Reefer Vehicles & Mobile Pre-Cooling vans
    For the purchase of reefer vehicle, reimbursement of the amount of interest accrued on the loan taken from banks/financial institutions will be done at the rate of 07 percent or the actual interest rate, whichever is less, for a period of 05 years. Its maximum limit will be Rs. 50 lakh.
  • Creating Infrastructure for conducting Degree/Diploma /Certificate Courses in Food Processing:
    Grant-in-Aid up to a maximum limit of Rs. 75 lakh may be provided towards the expenditure incurred on infrastructural facilities such as modern library, pilot plant, and laboratory equipment to the Universities/Government Institutions for conducting degree/diploma/certificate courses in Food Processing technology.