Interest subvention, reimbursement of SGST are among the attractive features

The Tamil Nadu Food Processing Policy–2018, unveiled by Chief Minister Edappadi K. Palaniswami on Wednesday, seeks to provide incentives to investors over and above what is being offered by the State Industrial Policy of 2014.

A scheme of interest subvention and reimbursement of State Goods & Services Tax (SGST) are the “attractive features” of the policy document, said a senior official of the Agriculture Department.

The government will provide 3% interest subvention per annum on term loans taken by investors for fixed capital investment and 5% for women or Scheduled Castes (SC) / Scheduled Tribes (ST) entrepreneurs.

The proposed SGST reimbursement will be provided to new industrial units with an investment of over Rs. 10 crore for 3 years from the date of commencement of business. The units should handle processing of medicinal plants, minor millets, poultry, fish, fruits and vegetables. The amount of investment would not include land cost.

The policy also envisages the provision of stamp duty exemption for notified food parks and industrial parks. Besides, market fee will be waived for fruits and vegetables purchased directly from farmers/farmer producer organisations (FPOs) and brought to the food parks for processing.

Flexibility in labour laws, as envisaged in the State Industrial Policy, priority in land allotment by SIPCOT or SIDCO, 99-year-long lease for investments of over Rs. 10 crore, capital subsidy and the single window clearance facility both for small and large industrial units are among the features of the policy.

Training for entrepreneurs, research institutes for food processing industry, transport, quality certification, financial support for exporting commodities, have also been envisaged in the policy.

Nodal agency

The Agricultural Marketing & Agri Business department will be the nodal agency to implement the policy and it will coordinate with other departments, Central government and other agencies.

Finance Minister O. Panneerselvam had announced the policy during the budget speech for 2018-19. It aimed at boosting farmers’ income, reducing wastage of agricultural produce and effecting value addition, apart from drawing a roadmap for setting up food parks. It also aims to create an enabling atmosphere for the innumerable food processing units across the State.

Cold storage

The Chief Minister also inaugurated a cold storage unit with a capacity of 50 tonnes at Hosur. It is set up by Agricultural Marketing and Agri-Business Department at a cost of Rs. 1 crore, a release said.

He opened three improved roads, new bridges across rivers and a railway over bridge constructed in Thoothukudi, Tiruchi, Tirunelveli and Villupuram districts at a total cost of Rs. 484.40 crore.

He handed over appointment orders to over 380 new recruits in Highways Department.