Food processing industry is one of the highest contributor in providing a large scale employment opportunity. This industry also contributes significantly to social and economic progress. Utter Pradesh is the fourth largest state of India and has a rich production under the agriculture and its allied sectors – food grains, horticulture and dairy and meat productions contribute 25% of the gross domestic state production. The emerging middle class and increasing demands at world market has motivated the state government to carve out a policy which can exploit this opportunity for the welfare of UP.
UP Food Processing Policy was launched in 2012 to attract investors and entrepreneurs. The government is providing financial assistance and other benefits in order to lieu the investors. There are a number of reasons to invest in UP especially in this sector:
- Availability of primary raw products throughout the year makes UP an attractive destination to invest. The raw products include wheat, paddy, maize, potato, mango, pea, horticultural products, milk, eggs, meat, honey, etc.
- The 20 Cr people reside in the state and an increasing number of middle provides an adequate market in itself.
- The availability of manpower at relatively lower cost than other states make it a cost reductive destination for FPI.
- A conducive environment.
FPI provides a number of capital investment subsidies and financial grants to entrepreneurs and investors which has been described below:
- Exemption from Stamp Duty
- IT, Bio-Technology, BPO call centres, agro processing units, food parks, and other allied industrial unit will get 100% exemption from stamp duty.
- On purchasing lands from private owners will be also exempted from stamp duty.
- Exemption from Mandi Fees and Development Cess
- The mandi fees will be exempted for 5 years on purchase of raw material consumed in the industry for new units.
- The new export oriented food processing industries will be exempted from mandi fees and development cess for 10 years.
- Electricity at Concessional rate
- The electricity duty will be levied at concessional rate from new units for 10 years and 15 years for pioneering industries.
- Power provided by captive power plant for self-use will be exempted from the electric duty.
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