Food Processing in India - Indian Industries Association

Haryana
Incentives & Concessions to Food Processing
Industry and Schemes for Human Resource
Development
I I A N E W S A P R I L - 2 0 1 0
With a view to promote food-processing industry, the
Ministry of Food Processing Industry, Govt. of India and
the state Govt. of Haryana are providing number of
incentives and concessions to this industry.
Incentives given by the State Govt. to the Food
Processing Industry.
1) Food Processing Industries except wheat & rice
will be considered as seasonal industry and
exempted from payment of minimum demand
charges for electricity during closer period of more
than 3 months.
2) No market fee shall be levied an agriculture and
horticulture produce used as raw material by Food
Processing Industries with in the State except rice,
wheat, mustard oil and cotton.
3) Interest Free Loan at the rate of 75% of the tax paid
on the sale of goods produced in such industrial
units shall be given under the Haryana Value
Added Tax Act 2003 for a period of 5 years from the
date of start of commercial production. This would
be repayable after a period of 5 years.
4) Incentives for mega projects.
(i) Mega project with investment of Rs. 100
crore and above or any project employing
more than 500 persons irrespective of
investment to set up in the backward areas
would be extended the facility of financial
assistance to be quantified at 50% of the tax
paid on the sale of goods produced by such
industrial units, under the Haryana Value
Added Tax Act 2003 of start of commercial
production, as Interest Free Loan (IFL)
repayable after a period of 5 years from the
date of grant of IFL
(ii) Exemption from LADT for a period of 5 years.
5) Charges for Change of land use for food
processing units shall be levied @ 50% of normal
rates in state declared backward areas.
6) Wines/liquors/Brandy etc. made from 100% fruits
produce in the State will be exempted from the
Excise Duty in Backward areas.
7) Electricity duty exemption for a period of five years.
8) Exporting units will get subsidy of 1% of the FOB
value of exports subject to maximum of Rs. 10 lakh
per annum.
9) Special priority shall be given for release of electric
connection to mega projects, 10% EOUs.
10) Customized package of incentives for project of
Rs. 30 crore and above.
Note : Incentives and Concessions shall be available
only to those units, which do not fall in the negative list of
the Industrial Policy 2005 (for Industrial Policy 2005 visits
( http://haryana.gov.in)
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Scheme for human Resource Development
a) Setting up of Food Processing & Training Centre
(ETPC)
Objective
Development of rural entrepreneurship and transfer of
technology for processing of food products by utilizing
locally grown raw material and providing “Hands-on”
experience at such production cum training centers,
while according priority to SC/ST/OBC and women.
Eligibility
Central of State Govt. organization, Education &
Training Institutions,
NGOs, Co-operatives provided the implementing
agency is willing to make available the qualified trainer,
accommodation, and other infrastructural facilities.
b) Creation of Infrastructure faculties for running
Degree/Diploma Courses and Training
Programmes for Food Processing
Objective
Creation of infrastructural facilities like library,
laboratory, pilot plants etc, for running degree/diploma
courses and training programmes including extension
services for food processing
Eligibility and Pattern of Assistance
Grant upto to Rs. 50 lakhs would be provided to HRD
Institutions such as colleges, universities, technical
institutions etc.
c) Training programmes sponsored by Ministry of
Food Processing Industries
Eligibility and Pattern of Assistance
Grant will be provided to institutions organizing such
training. Quantum of assistance will be subject to
number of trainees and duration of training etc.
d) Entrepreneurship Development Programme
Eligibility and Pattern of Assistance
Maximum Assistance of Rs. 1 lakh per EDP. Which
should be at least for a period of 4 weeks with a follow-up
phase of 12 months and the number of trainees should
not be less than 20. The objectives, course content,
selection criteria/procedure, expenditure break – up,
follow – up and monitoring mechanism should conform
to EDP guidelines.
Nodal Officer
Director of Industries, Deptt. of Industries Govt.of
Haryana, Chandigarh.