Govt to set up NBFC, initial corpus of Rs 2,000 crore to fund food processing industries: Badal

New Delhi, Dec 1 (KNN) To fund food processing industries, the government has planned to set up a non-banking financial company (NBFC) with an initial corpus of Rs 2,000 crore, said Harsimrat Kaur Badal, Union Cabinet Minister for Food Processing.

This is being done as a part of the effort to boost this sector and double farmer’s income, Badal added. 

Badal said the initial corpus would be Rs 2,000 crore, but the same would increase significantly later.

The government has inaugurated 15 mega food parks in last four and half years out of 42 sanctioned, in contrast to mere 2 parks between 2008 and 2014 during the UPA regime, she said

She said 35 out of 42 parks would be operational by the end of next fiscal year.

"We are setting up a fund for lending to food processing industries," she mentioned.

On the sidelines, the minister said that she would hold consultation with the finance ministry on setting up of this NBFC.

The proposal would also be put before the Cabinet for approval. 

"There has been 350 per cent increase in food processing capacity and 720 per cent increase in cold chain capacity, she stated”

Badal said the ministry is also providing Rs 10 crore subsidy for setting up of mini food parks near agriculture clusters.

Badal termed food processing as "golden sector".

She said India has the potential to become world food factory. 

The minister said the food processing sector is attracting USD 1 billion foreign direct investment (FDI) annually now.