AP govt focuses on food-processing industry
Andhra Pradesh government plans to create a separate department for food processing sector.
By PTI |
HYDERABAD: Andhra Pradesh government is set to create a separate department for food processing to promote the sector in a big way.
During the cabinet meeting here on Tuesday, Chief Minister Y S Rajasekhar Reddy instructed the officials to examine the proposal so that the fledgling sector could get special focus.
At present, food processing comes under the Industries Department.
" The government is keen to encourage the food processing industry in a focused manner," Information Minister A Ramanarayan Reddy told a post-cabinet media briefing.
As per the annual report of the Union Ministry of Food Processing Industries for 2006-07, AP is ranked second in the country in terms of financial assistance being given by the Centre.
There are 485 large and medium food processing industrial units in the state with an investment of Rs 2,905 crores.
During the last three years, 66 large and medium units, involving an investment of Rs 490 crores, and 884 small scale units with Rs 326.38 crore investment had come up during the last three years, the Minister said.
The state government had, in June 2005, announced a new food processing policy offering a slew of incentives and concessions including reimbursenent of 25 per cent of sales tax, interest subsidy of 3 per cent and reimbursement of power cost at the rate of Rs 1 per unit.
The cabinet also approved a proposal for modernisation and expansion of seven cooperative sugar factories in the state at a cost of Rs 266.94 crores.
During the cabinet meeting here on Tuesday, Chief Minister Y S Rajasekhar Reddy instructed the officials to examine the proposal so that the fledgling sector could get special focus.
At present, food processing comes under the Industries Department.
" The government is keen to encourage the food processing industry in a focused manner," Information Minister A Ramanarayan Reddy told a post-cabinet media briefing.
As per the annual report of the Union Ministry of Food Processing Industries for 2006-07, AP is ranked second in the country in terms of financial assistance being given by the Centre.
There are 485 large and medium food processing industrial units in the state with an investment of Rs 2,905 crores.
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During the last three years, 66 large and medium units, involving an investment of Rs 490 crores, and 884 small scale units with Rs 326.38 crore investment had come up during the last three years, the Minister said.
The state government had, in June 2005, announced a new food processing policy offering a slew of incentives and concessions including reimbursenent of 25 per cent of sales tax, interest subsidy of 3 per cent and reimbursement of power cost at the rate of Rs 1 per unit.
The cabinet also approved a proposal for modernisation and expansion of seven cooperative sugar factories in the state at a cost of Rs 266.94 crores.
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