Food processing units in Goa to get financial help from govt

Panaji: The Goa government has introduced a scheme under which the food processing units in the state will be given financial assistance of up to Rs 30 lakh each to increase the processing capacity, reduce wastage and enhance the income of farmers.

The state government on Thursday notified the scheme titled 'State Mission for Food Processing Scheme (SMFP) 2016'.

The scheme envisages extending the financial assistance or incentives for the establishment of new food processing units as well as technology upgradation and expansion of existing  food processing units, which can help in creating sustainable local employment in the state.

"The scheme provides incentives to the food processing units in the form of financial assistance to the extent of 25 per cent of the cost of the plant and machinery and technical civil works, subject to a maximum of Rs 30 lakh, to be released in two equal instalments," Goa Under Secretary (Industries) Georgina Saldanha said in the notification.

The Ministry of Food Processing Industries (MoFPI) is implementing the National Mission of Food Processing (NMFP) with an objective to decentralise the implementation of the ministry's schemes, which could lead substantial participation of the state governments or Union Territories, it said.

However, the Centre has delinked the NMFP scheme from the central financial assistance and has left it to the states to decide to continue (or not) NMFP scheme out of the increased resources resulting from the recommendations of the 14th Finance Commission, the notification added.

"As there is good scope for the development of food-based industries and generation of sustainable employment, the state government intends to continue the scheme," Saldanha said in the notification.

The main objectives of the scheme are to increase the level of processing, reduction of wastage, value addition, enhance the income of farmers as well as increase exports thereby resulting in overall development of food processing sector.

The food processing sectors like fruits and vegetables, dairy, meat, poultry or fish products, bakery products, cereal or other consumer food products, rice/flour/ pulse/oil milling and such other agri-horti sectors including food flavors, colours, oleoresins, spices, coconut, mushroom wines and hops will be covered under the scheme, Saldanha said.

The activities of aerated water, packaged drinking water and aerated drinks will not be considered for financial assistance under the scheme, it clarified.

The government has constituted an internal screening committee and state level empowered committee to decide on the applications received under the scheme.