Incentives for SMEs setting up food processing units
Updated: Jul 22, 2014 03:30:33pm
New Delhi, Jul 22 (KNN) In order to boost food processing industries in the country, small and medium entrepreneurs interested in setting up food processing units are provided financial assistance under the Ministry of Food Processing Industries Technology Up gradation/ Establishment/ Modernization of Food Processing Industries Scheme.
In addition, Government of India also provides various tax incentives to the Food Processing Industries set up by SMEs and their units in the country including Uttar Pradesh, Minister of State for Food Processing Industries Sanjeev Kumar Balyan informed Lok Sabha today.
The Ministry has launched a Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) in 12th Plan (2012-17) through State/UT Governments.
Under the Technology Up gradation/ Establishment/ Modernization of Food Processing Industries scheme of the mission, all the eligible SMEs interested in setting up food processing units are provided financial assistance at 25 per cent of the cost of Plant and Machinery and Technical Civil Works, subject to a maximum of Rs 50 lakh in general areas; 33.33 per cent of the cost of Plant and Machinery and Technical Civil Works, subject to a maximum of Rs 75 lakh in difficult areas like Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Andaman and Nicobar Islands and Lakshadweep and Integrated Tribal Development Project (ITDP) areas; and 50 per cent of the cost of Plant and Machinery and Technical Civil Works, subject to a maximum of Rs 100 lakh for North-Eastern States including Sikkim.
The applications for the scheme are received, sanctioned and funds are released by the respective State/UT Governments, for setting up of Food Processing Units in the country.
The various tax incentives provided to the Food Processing Industries set up by SMEs are - Deduction of expenditure for Setting up and operating a cold chain facility and warehousing facility for storage of agricultural produce; Deduction of Tax from profit available at the rate of 100 per cent tax exemption for the first 5 years of operations; Service tax is not leviable on items contained in the negative list etc. (KNN/SD)
In addition, Government of India also provides various tax incentives to the Food Processing Industries set up by SMEs and their units in the country including Uttar Pradesh, Minister of State for Food Processing Industries Sanjeev Kumar Balyan informed Lok Sabha today.
The Ministry has launched a Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) in 12th Plan (2012-17) through State/UT Governments.
Under the Technology Up gradation/ Establishment/ Modernization of Food Processing Industries scheme of the mission, all the eligible SMEs interested in setting up food processing units are provided financial assistance at 25 per cent of the cost of Plant and Machinery and Technical Civil Works, subject to a maximum of Rs 50 lakh in general areas; 33.33 per cent of the cost of Plant and Machinery and Technical Civil Works, subject to a maximum of Rs 75 lakh in difficult areas like Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Andaman and Nicobar Islands and Lakshadweep and Integrated Tribal Development Project (ITDP) areas; and 50 per cent of the cost of Plant and Machinery and Technical Civil Works, subject to a maximum of Rs 100 lakh for North-Eastern States including Sikkim.
The applications for the scheme are received, sanctioned and funds are released by the respective State/UT Governments, for setting up of Food Processing Units in the country.
The various tax incentives provided to the Food Processing Industries set up by SMEs are - Deduction of expenditure for Setting up and operating a cold chain facility and warehousing facility for storage of agricultural produce; Deduction of Tax from profit available at the rate of 100 per cent tax exemption for the first 5 years of operations; Service tax is not leviable on items contained in the negative list etc. (KNN/SD)
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