Agro & Food Processing Policy 2015-2020

Key Highlights

  • India's largest producer of Mango, Papaya, Lemon, Tomato, Chilli and Turmeric
  • India's 2nd largest producer of Paddy, Groundnut and Maize
  • Ranked 1st in India in Egg production, 2nd in Meat and 3rd in Milk production
  • Ranked 2nd in India in fresh water Fish production and overall Fish/Prawn production
  • Over 3,000 Food Processing units in the State
  • Food parks to be set up in every district
  • Inland Container Depot (ICD) to be set up at Chittoor and Kakinada Port

Agro & Food Processing Policy
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Key Policy Targets 2020

Key Initiatives

  • Develop commodity-based clusters in State
  • Promote innovation, research & development in the industry
  • Undertake capacity building and enhance competitiveness of food processing industry

major clusters / parks

  • Ultra Mega Food Park to be developed in Kuppam with state-of-the-art infrastructure
  • Development of Mega and Integrated Food Parks proposed
  • Inland Container Port (ICD) at Chittoor and Kakinada ports
  • Proposed Mango Development Board (Tirupati) and Banana Development board

Key Fiscal Incentives

Incentives

Description

FOR ULTRA MEGA, MEGA, INTEGRATED FOOD PARKS
  • Grant of 50% of project cost for setting up Mega Food Parks, limited to ₹ 50 crore
  • Grant of 50% of project cost for setting up Integrated Food Parks, upto ₹ 20 crore
  • VAT/CST/GST reimbursement for Integrated Food Parks during construction period for 2 years, upto ₹ 2 crore
POWER SUBSIDY ₹ 1.50 per unit for food processing units including cold chains, cold storage units, ripening units for 5 years from date of commencement of commercial production
CAPITAL SUBSIDY
  • 25% of project cost (includes plant & machinery, technical civil works), limited to ₹ 5 crore for establishment of new food processing units
  • 25% of new/upgraded equipment cost limited to ₹ 1 crore for technology upgradation
  • 50% for setting up Primary Processing Centres (PPCs) and Primary Collection Centres (PPCs), limited to ₹ 2.5 crore
  • 35% for setting up of cold chain for agriculture/horticulture/dairy/meat produce, upto ₹ 5 crore
INTEREST SUBSIDY 7% per annum on term loan for fixed capital investments, for a period of 5 years upto:
  • ₹ 2 crore for food processing units and cold chain infrastructure
  • ₹ 1 crore for setting up Primary Processing Centres (PPCs) and Primary Collection Centres (PCCs)
  • For Integrated Food Parks that avail loans from NABARD, interest subsidy will not be applicable
VAT/CST/SGST
  • For micro & small units – 100% reimbursement of net VAT/CST/SGST for 5 years
  • For medium units – 75% of net VAT/CST/SGST for 7 years

Existing Partners

Upcoming projects