Industries & Commerce Department - Food Processing Policy of Andhra Pradesh State – Orders – Issued.
G.O.Ms.No.333. Dated:
14-11-2003.
ORDER:
The
Government of India, Ministry of Food Processing Industries, have announced
number of schemes for accelerating the growth of the Food Processing Sector in
the States/Uts for resolving the problems of the agricultural surplus/wastages
and creation of rural jobs and for better pricing to the farm products. In the
scheme of technology up gradation / establishment / modernization of Food
Processing Industries, the Government of India gives a one time grant to set up
/ expand / modernize food processing industries covering all segments. In the scheme for Human Research
Development, the Government of India gives grant-in-aid to set up Food
Processing and Training Centers (FPTC), creation of infrastructure facilities
for running Degree/Diploma courses and entrepreneurship development
programmes. The Government of India
gives assistance for total quality management, promotion of quality assurance
and safety concept / bar coding, strengthening of codex cell, setting up of
quality control laboratory and research and development in processed food
industry. The scheme for backward and
forward integration and other promotional activities of the Government of
India, assists a number of generic advertisements, promotional activities, like
participation in exhibition/fairs, supporting seminars / workshops, conferences
etc, food fortification and strengthening of industry associations. The scheme Government of India for
implementing the for infrastructure development, assists the packaging centers
and laboratories to create integrated chain facilities, value added centers and
common processing facilities.
2. The Ministry of Food Processing, Government of India, have
requested the State Government to evolve the State Policy for Food Processing
Industries.
3. Government in order to achieve the increase impact of the Central assistance, to assist the Food Processing units and to adjust to a competitive market, a critical mass of investment by giving additional incentives on all schemes being implemented by the Government of India, and to develop best infrastructure for all Food Processing Units in the State, after deliberations with the concerned line of Departments, decided to evolve a Policy on Food Processing Industries, in the State.
4. Government, after careful consideration of various issues connected with the Food Processing units, approved the State Policy on “Food Processing Industries” as detailed below:
The policy will cover the following activities and areas
Fruit & vegetable processing
Fruit based ready to serve beverages.
Tissue
Culture Laboratories / Green houses / Green house nurseries
/ Mushroom Laboratories / Seed production units based
on modern
Scientific methods to meet industry standards.
Wine
making.
Food
grain milling / processing,
Using
modern technology and equipment
(except
Rice Mills).
Alcohol
for blending with fuels.
Dairy products:
Processing of poultry, eggs, meat and meat
products.
Fish processing including shrimps
Bread, Oilseed meals (edible), breakfast foods,
biscuits, confectionery, including cocoa processing and chocolate, oil
expellers and refining, malt extract, protein isolates, high protein foods,
weaning foods, extruded / other ready to eat food products and all other
processed foods; (excluding non packed food items served in Hotels and
Restaurants of all categories)
Cold storage units
Refrigerated Transport vehicles Containers;
(excluding second hand
Refurbished vehicles / containers)
Units manufacturing food grade packaging materials
for food
processing industry
Units
engaged in packaging, canning and bottling of process foods.
Units manufacturing additives /
Preservatives / Colors / Fragrances for
the processed food industry.
Biotechnology Industries
2. Incentives
and concessions:
The Government of Andhra Pradesh will give an
additional 10% of the subsidy assistance being given by the Government of India
to the agro food processing units.
Power is a very important cost factor in food
processing units to help newly established units during the nascent stage,
Government will extend electricity tariff at concessional rate at Rs. 1.75 per unit for a period of five years and
the deferential tariff (i.e., between actual cost as decided by the A.P.E.R.C.
and the concessional rate fixed by Government) is paid to the concerned discom
as subsidy.
The 50% of Stamp duty for land Registration and
documentation duty paid by the unit shall be refunded as subsidy from
Government in Industries Department.
A 5% interest subsidy will be given on total
working capital loan taken by new food processing industrial units in food
parks subject to a maximum of Rs.2.00 lakh per unit for a period of one year in
other areas of the state a maximum of Rs.1.00 lakh per unit for a period of one
year.
To encourage use of mechanized grading / sorting /
sizing machines / packaging especially for exportable products, a subsidy of
50% will be given on equipment with a ceiling of Rs.3.00 lakhs per beneficiary
on primary processing activities, like grading, sorting, packing, washing at
the farm gate.
To encourage the use of driers which will help in
getting better value addition for perishable produce a subsidy of 25% on the
cost of equipment will be given subject to a ceiling of Rs.2.00 lakhs per
beneficiary.
All Food Processing Industries shall be exempted
from payment of market cess, on the procurement of raw material for the
industry. On the turn over of the value of finished
product for exports, a develop- ment cess of 0.5% would be charged and
the amount will be exclusively utilized for improving the infrastructure for
the food processing industry.
The sale tax on inputs, other than fuel, used by
the Food Processing Industry the tax paid shall be adjusted against the tax
payable, on the sales of the finished products sold within the State or in the
course of interstate trade on which CST is leviable. Further in respect of exports the input tax shall be refunded by
Industries Department.
EXPORTS
If a unit exports at least 50% of its installed
capacity, the maximum limit of interest subsidy will be Rs.2.00 lakhs per unit
for a period of two years.
A 25% Airfreight subsidy will be given on the
actual cost incurred on airfreight for export of perishables with a ceiling of
Rs.2.00 lakhs per unit per annum.
INFRASTRUCTURE
The Andhra Pradesh Industrial Infrastructure
Corporation Limited shall form special purpose vehicles with private agencies
to develop food parks and other food processing clusters. The Andhra Pradesh
Industrial Infrastructure Corporation Limited shall have a maximum share of 26%
in the SPV and the SPV partners shall be selected by Andhra Pradesh Industrial
Infrastructure Corporation Limited based on their credentials, etc. The Andhra Pradesh Industrial Infrastructure
Corporation Limited shall also show the cost of land as their equity
contribution towards the project.
The Andhra Pradesh Industrial Infrastructure
Corporation Limited will get special funding from IIDF etc., to develop roads
etc and other facilities in the parks.
After developing the Food Parks, the Andhra Pradesh
Industrial Infrastructure Corporation Limited may give the maintenance and
management of the Parks to private agencies and also collect user charges for
such services.
Upto 10% of the Industrial Infrastructure
Development Fund shall be spent on establishing Common Effluent Treatment
Plants and providing infrastructure like, roads, drainages, water, electricity
etc., at the doorstep of stand-alone food processing units.
Backward linkages
The Government will assist establishment of futures
market for produces being used by the food processing industries and promote
micro irrigation systems and contract farming for which a separate policy and
package will be prepared by the Horticulture Department.
Forward linkages
The Government will develop and promote electronic trade
exchanges for processed food products.
The Government will assist marketing capabilities
of food processing units to face not only WTO challenges but also undertake
exports.
CREATING
GOOD BUSINESS ENVIRONMENT
All the Food Processing units will be given
clearances under the Single Window Act.
All procedures for inspection, pollution control
etc., will be simplified ultimately leading to a zero inspection regime.
3. SPECIAL PROVISIONS:
Food Parks, food processing clusters and large food
processing units shall be declared as special enclaves for labour regulation.
The A.P.State Financial Corporation shall
prepare a separate and special package to assist the establishment and
modernization / expansion of Food Processing industries specially those exporting
processed foods.
The Government shall harmonize agricultural policy,
horticulture policy, bio-technology policy and reduce the multiplicity of laws
and regulatory bodies.
5. The Commissioner of Industries shall be the Nodal agency to implement the policy.
6. The State Level Committee of the
Industries Department shall decide and finalize all cases relating
incentives/benefits etc. to the Food Processing Industrial units in the State.
7. The Commissioner of Industries, Hyderabad
shall evolve a separate coding (Bar Coding) procedure for Food Processing
Industries in the State.
8. All the concessions (except Capital
Subsidy) provided under the State Policy on Food Processing Industries, shall
be extended to the existing units treating them as new units.
9. The orders shall come into effect from
the date of issue of the orders.
10. This order issues with the concurrence of
the Finance Department, vide their U.O No.5074/PFS, dated 07-11-2003.
11. A copy of this order is available on the
Internet and can be accessed at the address http://apts.gov.in/apgos.
(BY ORDER AND IN THE NAME OF THE GOVERNOR OF ANDHRA
PRADESH)
K.V. RAO
PRINCIPAL
SECRETARY TO GOVERNMENT & CIP
To
The
Commissioner of Industries, Hyderabad.
All
Principal Secretaries/Secretaries to Govrnment.
All
Heads of Departments.
All
Collectors
All
Departments in Secretariat.
The
Accountant General, Andhra Pradesh, Hyderabad.
The
Vice Chairman & Managing Director, Andhra Pradesh Industrial
Infrastructure Corporation
Limited, Hyderabad.
The
Vice Chairman & Managing Director, Andhra Pradesh State Financial
Corporation Limited, Hyderabad.
The
Vice Chairman & Managing Director, Andhra Pradesh Industrial
Development Corporation Limited,
Hyderabad.
Copy
to:
The
Secretary to Government of India, Ministry of Food Processing Industries,
Panchsheel Bhavan, August Kranti Marg, New Delhi – 110 049.
Principal
Secretary to Chief Minister
P.S..
Minister for (Major Industries / Agriculture / Horticulture / Energy / SSI /
Fisheries /
Animal Husbandry)
P.S.
to Chief Secretary
P.S.
to Principal Secretary to Government & CIP, Industries & Commerce
Department.
P.S.
to Secretary to Government, Industries & Commerce Department.
The
Commissioner of Printing, Hyderabad .. with a request to publish in the Gazette
and supply 1000 copies.
Sf/sc.
//FORWARDED
BY ORDER//
SECTION OFFICER.