The Government of India has cleared that Food Processing Industry is in its one of the top most priority by setting up of a Special Fund of Rs. 2000 crore in NABARD to make available affordable credit to agro-processing units being designated as Food Parks. The objective of the fund is to accelerate the development of food processing sector on cluster basis to reduce wastage of agricultural produce and to create employment opportunities, especially in rural areas by setting up of individual food/ agro processing units in the designated Food Parks. Financial assistance from this Fund, designated as Food Processing Fund – 2014-15, will be provided by NABARD either directly or through consortium arrangements with other financing agencies.
Eligible Institutions/ Entities:
- State Governments
- Entities promoted by State Governments (with or without Government Guarantee)
- Entities promoted by Government of India,
- Joint ventures, SPVs, Cooperatives, Federations of Cooperatives, Farmers’ Producer Organizations, Corporates, Companies, Entrepreneurs, etc.
- Designated Food Parks and the individual processing units in the Designated Food Parks will be eligible for financial assistance from the Fund.
State government and entities promoted by State Governments are entitled to get loan for 95% of the project cost for the tenure of 7 years.
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