CII lauds UP sops to food-processing firms

The Confederation of Indian Industry (CII) has welcomed the incentives put forth by the Uttar Pradesh government for food-processing and agriculture-related industries.

In a seminar on the strengthening of food processing and marketing facilities in Uttar Pradesh held last week in Lucknow, the state's Chief Minister Mulayam Singh Yadav announced the establishment of a food-processing directorate in the state for promoting these industries.

Food-processing industries that invest more than Rs 50 crore will be given facilities and incentives as are given to other industries that invest more than Rs. 100 crore.

In order to encourage entrepreneurial activities in the state, the government has said it will give incentives to other industries that invest between Rs 10 crore and Rs 50 crore in the field.

"With these incentives, the road is now clear for the food-processing industry in the state to exploit the vast resources of raw materials available here and convert them into processed products," said Kiron Chopra, ex-chairman of the CII's UP State Council, while congratulating the department for industrial development and food processing at CII's office in Lucknow.

He added that incentives taken by the state government would give the much needed boost to the food-processing sector in UP.

The CII has recommended that incentives and facilities that have been lined up for the industry should be publicised by the state government at the national and international levels so as to ensure competitive advantage.

This will in turn help to attract investment into the state. The CII has added that initiatives need to be converted into an action plan so that potential investors may derive advantage from the decisions.