The Reserve Bank has decided to bring agro-based processing units and cold chains under the priority sector lending to ensure easy and better financing for the sector, Food Processing Minister Harsimrat Kaur Badal today said.
The priority sector lending attracts concessional rate of interest.
"The Reserve Bank of India has classified loan to food and agro-based processing units and cold chain under Agriculture activities for Priority Sector Lending (PSL) subject to aggregate sanctioned limit of Rs 100 crore per borrower," Badal said in a statement.
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The Minister said the move will ensure greater flow of credit to entrepreneurs for setting up of food processing units and attract investment in the sector.
Speaking at the National Cold Chain Summit here, Badal said India is one of the largest producers of milk, fruits and vegetables, marine products, meat and poultry. There is an urgent need to create adequate cold chain capacity in the country for preventing wastage, she added.
"A total of 138 integrated cold chain projects were approved by the government, which includes 30 new cold chain projects sanctioned recently for implementation and would attract an investment of Rs 470 crore and 108 projects are under the implementation by the Ministry," she said.
Harsimrat also informed that with a view to provide policy support to the food processing industry, the Ministry has developed a 'Investors Portal'.
