Food processing ministry to facilitate quick bank loans
13 Aug 2007
Responding to the requests from entrepreneurs for "grant-in-aid" for setting up food processing units and expanding modernisation of the existing plants the ministry of food processing industries will forward 849 proposals for to banks to facilitate early loan disbursements.
All the pending applications are also being sent to the banks where the units have applied for term loans, Sahai stated in a written reply.
A number of entrepreneurs had sought such grants for setting either setting up new food processing units or for expansion and modernisation of existing plants.
Subodh Kant Sahai, minister of state for food processing industries today said in the Rajya Sabha, "In order to ensure speedy disbursement of the financial assistance, the ministry has decided to decentralise the disbursement procedure through banks effective from 1 April this year."
Sahai said only complete proposals, which fulfil the guidelines of the ministry, are considered for approval and financial assistance is released accordingly.
Among the pending proposals, 327 have been pending since the last financial year, while 192 have been pending since from 2005-06 and 262 cases from 2004-05. the ministry has 55 requests pending since 2003-04 and 13 since 2002-03.
In his reply to another question, the minister said government is currently undertaking a study for identification of locations for five mega food parks proposed to be set up during the 11th plan.
Although 30 mega food parks are envisaged for the plan, initially five would be set up in different regions, to be identified through pre-feasibility study, he added.
