Sahai for SEZ status to proposed FTPs

New Delhi, Nov 24 (UNI) The Ministry of Food Processing Industries today moved a comprehensive proposal to give Special Economic Zone (SEZ) status to the proposed mega Food Technology Parks (FTPs) with a provision of 50 per cent produce for domestic consumption and remaining for exports.

Announcing this at an Assocham summit here, Minister of State for Food Processing Industries Subodh Kant Sahai also declared that this proposal has been moved to the Group of Ministers (GoM), Planning Commission and National Manufacturing Competitiveness Council (NMCC).

This would also be forwarded shortly to the Cabinet for consideration, he said.

The minimum and maximum area prescribed for proposed mega food parks is between 100 and 100 hectares of land with adequate refinancing facilities from National Bank for Agriculture and Rural Development (NABARD) with a minimum central allocation of Rupess one lakh crore, said the Minister.

Mr Sahai said the Finance Ministry has also agreed to make food processing industry a zero excise tax based industry by fiscal 2007-08 following recommendation from the Food Processing Ministry.

He added that in the last two and half years, the excise taxation rates have been brought down to eight per cent from 32 per cent and by the next fiscal, the taxation would be zero based with minimum possible local levies in view of growing significance of this sector.

He said the Finance Ministry would have to give tax concessions to mega food processing parks on the lines of SEZ just as such concessions are being made available to other sectors so why not the mega food processing parks.

The Minister said agri business cannot be made 100 per cert export oriented because domestic requirement has also to be met through setting up of mega food parks and further stated that in December 2006, the full NDC would be meeting to submit their report and the Chief Minister of all states will unveil their vision on land allocations for mega food parks.

According to estimates of the Ministry, a minimum Rs 2.5 lakh crore would be needed in processing sector of which, the central government will create refining facilities to the tune of Rupees one lakh crore through NABARD as most of other banks have failed to extend fiscal support to this sector.

FDIs should also be encouraged in retail sector in the absence of which large MNCs will operate in India through franchise route as 40 per cent of them have already taken resort to this route in India, Mr Sahai added.

UNI SRS PV KN1715