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Uttar Pradesh Food Processing Industry Policy 2023 :

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Subsidy
o Amounting to 35% of incurred expenditure on plant, machinery and technical civil work for FPIs subject to maximum of Rs. 5 Crores.
o In case of expansion and modernization / up-gradation, capital subsidy will be 25% subject to maximum of Rs. 1 Crore.

    Permission to purchase land (agricultural) for more than 12.5 acres for FPIs.

    Exemption from charges of 2% of the value at circle rate as fees for non-agricultural use declaration for FPIs.

    Fees for Exchange of government owned land coming under the scope of the project site will not be applicable for FPIs.

    Conversion of Land Use: 50% fees will be waived off on CLU

    External Development Charges: Rebate of 75% on external development charges for FPI to be setup in UP on a land where no developmental work has been done by Authorities.

    100% exemption from stamp duty for the land purchased for the establishment of food processing industry.

    Exemption from Mandi Fees and cess for agricultural produce procured from other states for processing in Uttar Pradesh.

    Exemption from Mandi fees and cess for agricultural produce directly sold to processing units by farmers.

    Sponsoring studies for certifying / declaring an area disease free i.e.- potato – Agra & Kannauj; Durum wheat-Bundelkhand.

    Subsidy on solar power projects for electricity supply to processing units:50% subsidy on solar power utilities in rural areas and 90% subsidy for women entrepreneurs in the same category.

    25% Freight Subsidy on exports excluding Nepal, Bangladesh and Bhutan.

    Scheme for value addition and cold chain infrastructure

    o Subsidy of 35% for infrastructure pertaining to Cold Chain and Value Addition and a subsidy of 50% up to Rs. 10 Crores for frozen storage/deep freezer, value addition and processing infrastructure.

    o Infrastructure for Agro processing clusters: Minimum 5 food processing units with minimum investment of Rs. 25 crores, a grant of 35% of the eligible project cost subject to maximum of Rs. 10 crores will be provided as grant.

    Scheme for Creation of backward and forward linkages: The admissible grant will be 35% of the eligible project cost subject to maximum of Rs. 5 crores.

    Interest Subsidy for purchase of Reefer Vehicles and Mobile Pre-Cooling vans: Reimbursed for a period of five years, subject to maximum limit of Rs. 50 lacs.

    The entire State of Uttar Pradesh will be considered as a single unified market for food processing industries with respect to payment of mandi fees and cess. License holders of any mandi in the state will be eligible to work in other mandis of the state as well.

    Support for modern technology adoption to food processing start-up sengaged in Agricultural value chain development, coverage/production/productivity estimation and evidence-based decisions – up to Rs. of 5 crores.

    Promotion of decentralized processing and storage: SHGs/FPOs/Framers will be eligible for assistance in the form of grant, based on their projects; subject to a maximum limit of 50% of the total project cost or Rs. 50 lacs.

    Support under value addition & cold chain infrastructureand Creation of backward and forward linkages as per the guidelines of PM Kisan Sampada Yojna.

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Our Food Policy

Key policy highlights

Capital Subsidy :

  • Micro, small and medium enterprises in the Bundelkhand and Purvanchal region of the State will be eligible for capital subsidy of 25%, 20% and 15%, respectively
  • Micro, small and medium enterprises in the Madhyanchal and Paschimanchal region of the State will be eligible for capital subsidy of 20%, 15% and 10%, respectively
  • SC/ ST and women entrepreneurs will be eligible for 2% additional, capital subsidy
  • Capital subsidy is capped at Rs 4 Crore/ unit
  • Capital subsidy will be provided in 2 equal installments. First installment is payable once the construction of related buildings is completed. Second installment is payable once at least 50% of commercial production has begun.

  • Only micro units will be eligible for interest subsidy
  • 50% interest subsidy, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit
  • 60% interest subsidy for SC/ ST and women entrepreneurs, payable annually for five years, subject to ceiling of Rs 25 Lakh/ unit

  • Approved MSME industrial parks/ estates/ flatted factory complex (minimum area of 4000 square metres for flatted factory complexes) projects with area of 10 acres or more, will be eligible for annual infrastructure interest subsidy of up to 50%, subject to ceiling of Rs 2 Crore, annually
  • Infrastructure interest subsidy will be payable for 7 years

  • MSMEs will be eligible for 100% stamp duty exemption in the Purvanchal and Budelkhand region, and 75% in the Madhyanchal and Paschimanchal region except for Gautam Budh Nagar and Ghaziabad wherein stamp duty exemption will be 50%
  • Women entrepreneurs will be eligible for 100% stamp duty exemption in any part of the State
  • MSME industrial parks/ estates/ flatted factory complex developers will be provided 100% stamp duty exemption, on purchase of land

  • MSMEs will be encouraged to manufacture high quality products
  • MSMEs will be promoted to attain quality standards like ZED, GMP, Hallmark etc. To this end, fiscal assistance of up to 75% (maximum Rs 5 Lakh) will be provided to MSMEs, as reimbursement
  • Financial assistance of 75% (maximum Rs.10 lakh) will be provided for attaining patents and GI tags
  • Attorney fee of Rs 50,000 and Rs 2,00,000 will be reimbursed for obtaining national and international patents/ GI tag, respectively
  • Financial assistance of 75% for implementing ERP solutions (maximum Rs 1 Lakh) and ICT solutions (maximum Rs 5 Lakh)

  • Fiscal assistance of 50% of the project cost (maximum Rs 10 crore) for establishment of CETPs
  • Financial assistance of 50% of the project cost (maximum Rs 75 lakh) for implementing Zero Liquid Discharge facility
  • Fiscal assistance of up to 50% of the project cost (maximum Rs 50 Lakh) for establishing boiler facility as common facility (minimum 10 MSMEs will be required to undertake such project)
  • Promoting green practice and environmental audits for MSME like energy and water conservation audits – reimbursement of 75% (maximum Rs 50,000) towards audit services fee and 50% (maximum Rs 20 Lakh) towards purchase of auditor recommended equipment/ machinery
  • Reimbursement of up to 50% (maximum Rs 2.5 Lakh) of the consultancy charges incurred towards obtaining green rating for industrial buildings
  • Reimbursement of up to 50% (maximum Rs 10 Lakh) towards expenses incurred for the establishment of the Environment Management Laboratory/ Environment Management System