The Hindu : Karnataka / Bangalore News : State gets grant for mega food parks

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Karnataka

Karnataka - Bangalore

State gets grant for mega food parks

Special Correspondent

BANGALORE: Karnataka will get from Delhi, Rs. 50 crore to set up mega food parks, Rs. 15 crore for cold storage fruits and Rs. 10 crore to modernise abattoirs, as part of a larger funding to promote the food processing industry, Union Minister of State for Food Processing Industries Subodh Kant Sahai said here on Friday.

Speaking at an investors’ meet on food processing, Mr. Sahai said the State Government should come out with amendments to APMC Act and other action to help the entrepreneurs.

“We have already given several tax concessions and lowered customs duty on import of machinery and allowed 100 per cent foreign direct investment in this sector. The southern States, which are relatively more developed and Karnataka especially with its thriving horticulture sector, can take the lead,” he said.

The sector was constantly growing and relatively unaffected by the global financial melt down, he said. The 6.7 per cent of growth in 2003-04 was now an impressive 14 per cent. This year India had seen 11 deals by overseas investors, amounting to € 106.4 million.

Ashok Sinha, Union Secretary, said between 1999 and 2008, the Union Ministry had provided funding for processing fruit, vegetable, meat and poultry products, fish and milk processing.

Karnataka produced almost 10 per cent of India’s horticultural crops and was well positioned to grow its food processing industry. Federation of Karnataka Chambers of Commerce and Industry president D. Muralidhar said: “To move up from a 2 per cent share in global processed food sector, industry looked forward to incentives such as soft loans.”

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