More funds for modernisation of food processing industries

New Delhi, June 2 (UNI) The Cabinet Committee on Economic Affairs (CCEA) today raised the allocation of funds from Rs 98 crore to Rs 295 crore for the technological upgradation of food processing industries under the Xth Plan.

''The enhancement will be met from within the existing Xth Plan allocation of the Food Processing Industry Ministry,'' Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the CCEA meeting.

The scheme provides for grant of assistance to food processing units engaged in activities covering fruit and vegetables, milk products, meat, poultry, fishery, oil seeds and such other agri-horticultural sectors leading to value addition and shelf life enhancement including food flavours and colours, oleoresins, spices, coconut, mushroom and hops.

Assistance will be given in the form of grant-- 25 per cent of the project cost of plant and machinery and technical and civil work subject to a maximum of Rs 50 lakh in general areas, and 33.33 per cent up to Rs 75 lakh in difficult areas such as J and K, Himachal Pradesh, Uttaranchal, Sikkim, North Eastern states, Andaman and Nicobar Islands, Lakshdweep and Integrated Tribal Development Project areas.

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