Telangana aims to attract Rs 25K cr investment in food processing policy
Telangana aims to attract Rs 25K cr investment in food processing
Telangana Cabinet approved a Food Processing Policy (TFAPP) which aims to attract an investment of Rs 25,000 crore and an additional 70,000 direct and indirect jobs for 3 lakhs will set up 10 food processing zones. Each zone will be developed on 500-1,000 acres and food processing zones will be set up on 10,000 acres by 2024-25.
The Cabinet also decided to incentive entrepreneurs investing in the food processing sector. As rice production increases regularly, it was decided to build large-scale food processing units. The government would develop all basic infrastructure facilities and allocate land to suitable candidates.
Grant special incentives to food processing establishments of international quality. The cabinet also decided to extend the final application deadline for business people from July 12th to July 31st. Officials to implement a Food Processing Zone Policy to Improve Technology and Skills in Agriculture Sector Rice Mills, Industries, Food Processing Units for Legumes, Oil seeds, Fruits, Flowers, Vegetables, Meat, Chicken, Fish, Milk and Dairy Products under this policy.
The cabinet sees the state in a position to process surplus production from agriculture, horticulture, animal husbandry, milk and fishing, which has been achieved through the significant increase in irrigation capacities in the state. Providing financial incentives for producers, farmer organizations and self-help groups for the advancement of the value chain through the establishment of food processing units.
Units established in the food processing zones receive various subsidies such as the subsidy of Rs. 2 million per unit for 5 years, 75 percent repayment of loan interest (less than 2 billion rupees) for investments and 100 percent repayment of the market committee fee for 7 years. SC, ST, minorities, self-help groups and farmers & organizations receive additional incentives. Resolutions were taken on the second day of the cabinet meeting, chaired by Prime Minister K. Chandrasekhar Rao.
Rao pointed out that because of several government measures, the state produced a record production of 3 million tons of rice last year. He indicated that rice yields could continue to rise over the next year. During the current monsoon season, 1.40 million hectares of rice and cotton are grown, which are said to achieve extraordinary yields.
The CM said that storage capacities in the state should be increased, while the grinding capacity in rice mills should also be increased. The state cabinet has decided to establish a cabinet subcommittee chaired by the Minister of Agriculture, S Niranjan Reddy on the measures to be taken for Rice Storage, Milling, Marketing and Establishment new industries against the background of high rice yields. The cabinet also decided to encourage palm oil cultivation in the state. Oil cultivation on 20 hectares of land. As part of this, the Cabinet decided to grant Rs 26,000 per acre for the first year and Rs 5,000 per acre for the second and third years as a financial incentive for entry.
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