AP FOOD PROCESSING POLICY
The State intends to be the most preferred destination for Food Processing Industry. The new Food Processing Policy aims to capitalize on the rich and diverse food production base of Andhra Pradesh to provide fillip to the sector.
CHAIN PROJECT SCHEME COLD
Cold Chain Project scheme is to provide integrated and complete cold chain and preservation infrastructure facilities without any break, from the farm gate to the consumer from the production site to the market. Pre-cooling facilities at production sites, reefer vans, and mobile cooling units also assisted under the Integrated Cold Chain projects. Scheme helps linking groups of producers to the processors and market through well-equipped supply chain.
Cold chain Units:
- Eligibility: 35% of Project Cost
- Maximum limit of grant-in-aid: Rs.5 Crs and Interest subsidy 5 years from COD @7% (subject to Max 2 Crs)
Cold chain Units for Establishment of Shrimp Processing Unit:
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs.5 Crs and Interest subsidy 5 years from COD @6% (subject to Max 2.50 Crs)
Cold chain Units for Establishment of Fish Processing Unit:
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs.7 Crs and Interest subsidy 5 years from COD @6% (subject to Max 2.50 Crs)
INTEGRATED FOOD PARK SCHEME
Integrated Food Park Scheme (IFP) is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market. It will include creation of storage and processing infrastructure near the farm, transportation, logistics. The main feature of the Scheme is a cluster based approach. The scheme will be demand-driven, and will facilitate food processing units to meet environmental and safety standards.
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs. 20 Crs
MEGA FOOD PARK SCHEME (MFGS)
Mega Food Park Scheme (MFPS) is to provide modern infrastructure facilities for the food processing along the value chain from the farm to the market. It will include creation of processing infrastructure near the farm, transportation, logistics and centralized processing centres. The main feature of the Scheme is a cluster based approach. The scheme will be demand-driven, and will facilitate food processing units to meet environmental and safety standards.
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs. 50 Crs
NEW FOOD PROCESSING SCHEME
This scheme is 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 scheme envisages extending the financial assistance for establishment of new food processing units in the state.
- Eligibility: 25% of Project Cost (Includes Plant & Machinery, technical civil works)
- Maximum limit of grant-in-aid: Rs. 5 Crs and Interest Subsidy 5 years from COD @7% (Subject to Max 2 crs)
PRIMARY PROCESSING AND COLLECTIONS CENTRES SCHEME
This scheme is to create effective backward linkages through setting up of processing and preservation facilities at village level to enhance shelf life of perishable produces. The Scheme is applicable to both horticulture and non-horticulture produce such as: fruits, vegetables, grains& pulses, dairy products, meat and poultry etc.
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs. 2.5 Crs and Interest subsidy 5 years from COD @7% (subject to Max 1 Cr)
TECHNOLOGY UP-GRADATION /MODERNIZATION SCHEME
The objective of the scheme is 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 scheme envisages extending the financial assistance for Technology Up gradation / Modernization / expansion of existing food processing units in the state.
- Eligibility: 25% of new/ upgraded equipment cost
- Maximum limit of grant-in-aid: Rs. 1 Cr.
WASTE PROCESSING UNIT SCHEME
The objective of the scheme is to ensure proper utilization of the waste generated by FPIs in the clusters. Waste in the Food processing Industries is product specific. It is primarily organic residue of processed raw materials.
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs. 2 Crs
SETTING UP/UPGRADING TESTING LABS (INCLUDING NABL ACCREDITED)
FOR NABL APPROVED LABS:
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs. 5 Crs
FOR EXISTING FOOD PROCESSING UNITS:
- Eligibility: 50% of Project Cost
- Maximum limit of grant-in-aid: Rs. 5 Lakhs
FOR STATE GOVT. ORGANIZATIONS AND UNIVERSITIES:
- Eligibility:
- a) 80% of eligible Project
- b) 80% of cost of 2 technical staff in such Laboratories for 3 years
- Maximum limit of grant- in-aid: Rs. 5 Cr
- Eligibility: 50% of Cost of the refer vehicle
- Maximum limit of grant-in-aid: Rs.10 Lakhs each vehicle
FISCAL INCENTIVES:
- Reimbursement of Power consumption charges @1.50 per unit for 5 years / Rs.1.00 per unit for Fish & Shrimp Processing units.
- Reimbursement of Non-Agriculture Land Assessment (NALA) tax for the produce purchased direct from farmers.
- Reimbursement of 100% stamp duty, Transfer duty.
- VAT/CST/GST Reimbursement for micro & small enterprises (100%), medium industries (75%) & Large Industry Units (50%) for 5-7 years
| S.No | Scheme | Eligibility | Maximum limit of Grant |
| 1 | Scheme of food parks | ||
| 1. Integrated Food park | 50% of project cost | Rs. 20 Crs | |
| 2. Mega food park | 50% of project cost | Rs. 20 Crs | |
| 2 | New food Processing Units | 25% of Project cost (Includes Plant & machinery, technical civil works) | Rs.5 Crs and Interest subsidy 5 years from COD@7%(subject to Max 2 Crs) |
| 3 | Technology Up-gradation / modernization of existing FP units | 25% of new/up graded equipment cost | Rs. 1 Cr |
| 4 | Setting up Primary Processing/ Collection Centres(PPCs/PCCs) | 50% of Project cost | Rs. 2.50 Crs and Interest subsidy 5 years from COD @ 7% (subject to Max 1 Cr) |
| 5 | Cold chain units | 35% of Project cost | Rs. 5Crs and Interest subsidy 5 years from COD @ 7% (subject to Max 2 Crs) |
| 6 | Modernization of Abattoirs | 50% cost of Plant & Machinery and Technical Civil works and other eligible items | Rs. 15 Crs |
| 7 | Reefer Vehicles | 50% of cost of the reefer vehicle | Rs. 10 Lakhs each vehicle |
| 8 | Units for processing of waste produced in FP units in identified clusters | 50% of Project cost | Rs. 2 Crs |
| 9 | Scheme for setting up / Upgrading Testing Labs (including NABL accredited) | ||
| I) For NABL approved labs | 50% of project cost | Rs. 5 Crs | |
| II) For Existing Food Processing Units | 50% of project cost | Rs. 5 Lakhs | |
| III) For State Govt. organizations and Universities | a) 80% of eligible project b) 80% of cost of 2 technical staff in such Laboratories for 3 years |
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