In order to give a boost to the food parks, the food processing industries ministry is trying to bring about a synergy between the food parks and agri-export zones.
The ministry is stressing on developing units which are export-oriented on the lines of the agri export zones. To ensure the production of quality food items, particularly for exports, the ministry is also assisting in setting up a network of food laboratories. A Codex Laboratory at CFTRI, Mysore, state-of-the-art labs in Punjab, Uttar Pradesh, Maharashtra and Delhi were approved by the ministry, an official statement said.
In 2001, food processing projects worth Rs 1,560 crore including Rs 456 crore of foreign investment were cleared by the Centre.
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The total investment during December 1999 - December 2000 had increased by Rs 384 crore at Rs 73,220 crore from Rs 72,826 crore in the previous year.
During 2001, the food processing industries ministry had granted financial assistance of Rs 47 crore for 170 projects for creating infrastructure units, invested Rs 10 crore in research and development and given clearance for 20 food parks with financial aid up to Rs 4 crore each, the release added.
To boost foreign investment, approval for 100 per cent foreign equity has been given for most of the processed food items.
To enable availability of processed foods to the common man at affordable prices, excise duty for the segment has been brought down to zero per cent from 16 per cent.