Food processing projects approved under Creation Of Infrastructure For Agro-Processing Cluster

Food processing projects approved under Creation Of Infrastructure For Agro-Processing Cluster

Part of: GS Prelims and GS-III – Food processing

In news

• The government has approved seven proposals of Food Processing Projects worth over 234 crore rupees under the Scheme for Creation of Infrastructure for Agro-Processing Cluster.
• The scheme for Creation of Infrastructure for Agro-Processing Cluster was approved in 2017 under the Pradhan Mantri Kisan Sampada Yojana to incentivize the setting up of agro processing clusters in the country.
• This scheme aims at development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach.

Important value additions 

Pradhan Mantri Kisan SAMPADA Yojana

• In 2016, MoFPI introduced an umbrella Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA). 
• It was proposed to be implemented with an allocation of ₹6,000 crores for the period of 2016-20.
• In 2017, SAMPADA was renamed as the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
• It is a Central Sector Scheme.
• Objectives: (1) To supplement agriculture; (2) To create processing and preservation capacities; (3) To modernise and expand existing food processing units with a view to increasing the level of processing; (4) To add value leading to the reduction of wastage.
• Seven component schemes under PMKSY: (1) Mega Food Parks; (2) Integrated Cold Chain and Value Addition Infrastructure; (3) Infrastructure for Agro-Processing Clusters; (4) Creation of Backward and Forward Linkages; (5) Creation/Expansion of Food Processing & Preservation Capacities; (6) Food Safety and Quality Assurance Infrastructure; (7) Human Resources and Institutions.
• Under PMKSY, capital subsidy in the form of grants-in-aid ranging from 35% to 75% of the eligible project cost subject to a maximum specified limit is provided to investors under the various schemes for undertaking infrastructure, logistic projects and setting up of food processing units in the country.