Having announced a dedicated policy in agro business,Gujarat expects about Rs 10,000-15,000 crore investment in agro food processing sector in next five years. The state government on Monday announced the ‘Comprehensive Agro Business Policy 2016-21’ which focuses on value addition of agriculture produce.
“As on date, about Rs 3,000 crore investments have been made under various schemes for food processing but with special focused policy, we are expecting about Rs 10,000-15,000 crore investments in agro food processing sector in next five years,” said K S Randhawa, managing director of Gujarat Agro Industries Limited.
According to state government, there are huge opportunities in agro food processing sector in India and through this policy it wants to explore markets within India and globally.
Babubhai Jebalia, chairman of Gujarat Agro Industries said: “Gujarat is the leading state in agriculture in India and there is a vast scope for the state in value addition and food processing.The policy will help the state tap opportunities in coming days.”
Under the ‘Comprehensive Agro Business Policy 2016-21’, financial assistance will be provided for setting up new agro and food processing unit, expansion and modernization to existing units in the state. Gujarat government will provide financial assistance of maximum Rs 50 lakh per project for the same under the policy as capital investment subsidy.
The eligible units and infrastructure projects will be provided reimbursement of net tax paid by them under section 13 of Gujarat value added tax (VAT) tax against their output tax liability. The reimbursement will be limited to a ceiling of 70% of the eligible fixed capital investment made by the unit.
The state government will also provide air and sea freight subsidy to the food processing units in limit of Rs 10 lakh per year to boost export from Gujarat.
Source: Business Standard