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| MP to offer more sops to food processing units |
| Shashikant Trivedi / New Delhi/ Bhopal Oct 05, 2009, 00:48 IST |
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After receiving lukewarm response from investors for six food parks, the Madhya Pradesh government has planned to offer more sops to food processing industries in the forthcoming industry policy.
The state government has also reportedly plans to spare at least 500 acres in each district for food processing units.
Agro-based food processing industries, milk-based industries, herbal units, minor forest produce industry and bio-technology units will be given priority for sops and concession in the policy.
“The definition of mega project is proposed to be changed now. Any investment of Rs 25 crore now will be considered mega project. The industries will be given land on concession basis, waived of electricity duty and diversion tax etc. The Food Processing Policy, 2008, has also proposed to consider Rs 5 crore investment in herbal, milk units etc., as mega project,” said a government insider.
Any food processing venture of Rs 5 crore to Rs 25 crore will be offered 5 acres on concessional rates, Rs 25-50 crore will be offered 10 acres, Rs 50-75 crore will be allotted 15 acres and those who will invest more than 100 crore will be offered a maximum of 25 acres of land.
The draft (available with Business Standard), which is yet to be finalised said, “Those units that will come up at single location and will employ 1,000 direct employment will also be considered under mega project category irrespective of investment.”
“Such units will be offered package of sops. They will be offered land on 25 per cent of the premium, the size of land area will be decided on employment generated by them,” said the source.
A unit that will generate direct employment for 1,500 people will be given 10 acres on 25 per cent of the premium, 20 acres for 2,000 jobs, and maximum 25 acres for 2,500 jobs.
“The apex committee on investment will decide for the units that will generate 2,500 or more jobs on case-to-case basis,” the source added.
The new policy is also likely to offer 50 per cent of the investment on roads, electricity and water as an incentive to industrial ventures but it will not exceed Rs 1 crore.
“This facility is proposed to be made available in the a periphery of 10 km of those industrial areas where land and buildings are available for allotment,” the source clarified.
The central government-funded six different locations failed to attract investment and those who proposed to invest in food processing sector withdrew their proposals in absence of basic facilities and sops.
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