Rs 1,00,000 cr to be invested in food processing industry in 10 yrs

Mumbai, Dec 22 (UNI) Union Minister for Food Processing Industries Subodh Kant Sahai announced here today that his ministry has chalked out a strategy which will ensure the investment in the food processing sector of the country worth Rs 1,00,000 crore over a period of next 10 years.

Talking to media on the sidelines of annual function and national seminar, which was held by All India Food Processors Association (AIFPA) here today, the Minister said that a sum of Rs 20,000 crore was likely to be invested in the sector, during the current fiscal.

The investments would be made in the forms like mega food park to encourage the horticulture and fishing industries of the country.

Also, the minister informed that his ministry was all set to open a National Institute of Management and Training to prepare the skilled labour for the sector. The course for the proposed institution would be started by the end of current financial year, he added.

Making a promise to the industry of removing all the anomalies attached to the taxation segment of the sector, Mr Sahai said that the ensuing year 2007-08 should be a 'growth year' for the industry.

Expressing his satisfaction over the domestic retail outlets which was also coming in a big way on par with the arrival of foreign retail majors in the country, he said that there were as much as 63 cities in the country that were coming up as cosmo cities and hence the growth in the sector will be diversified in future.

Replying to a media query he said that the only issue before the country's farmers today was how their produces would reach the industries in the form of a raw material where the value will be added to them, thus giving a good award to the farmers' produce.

Talking about the taxation, he said that the zero-paisa taxation was already in existence. Moreover, a taxation holiday for a period of five years had been provided to the food processing sector.

Also, he informed that once the taxation holiday ends, only 25 per cent of income tax would be collected from the industry for another period of five years. Finally he informed that his ministry was looking for public-private partnership for the development of infrastructure of the sector.

UNI KKD SD SKB1541