Agro & Food Processing Policy 2015-2020
Key Highlights
- India’s largest producer of Mango, Papaya, Lemon, Tomato, Chilli, Turmeric, eggs,
fish, and prawns
- India’s 2nd largest producer of paddy, groundnut, and maize
- Over 3,000 food processing units in the state
- Ultra mega food parks planned at Kurnool and Krishna districts
- Top ranked state in marine exports
- Upcoming aqua mega food park at Bhimavaram,West Godavari
- Multi-product food park at Chittoor
- Spices park at Guntur
- Dry spell mitigation through deployment of 15,000 rain guns
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Agro & Food Processing Policy
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Key Policy Targets 2020
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Key Initiatives
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- Develop commodity-based clusters in State
- Promote innovation, research & development in the industry
- Undertake capacity building and enhance competitiveness of food processing industry
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major clusters / parks
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- 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
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Key Fiscal Incentives
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Incentives
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Description
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FOR ULTRA MEGA, MEGA, INTEGRATED FOOD PARKS
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- 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
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POWER SUBSIDY
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₹ 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
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CAPITAL SUBSIDY
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- 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
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INTEREST SUBSIDY
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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
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VAT/CST/SGST
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- 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
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Existing Partners
Upcoming projects
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