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UP: Yogi Announces Upto 50% Subsidy On Setting Up Solar-Powered Food Processing Units

By LokMarg 6th February 2023

In an attempt to boost the food processing sector in the state, the Uttar Pradesh government headed by Chief Minister Yogi Adityanath has decided to provide upto 50 per cent subsidy to interested investors, according to a government statement.

According to a statement, the decision assumes significance in view of the fact that the state is one of the leading producers of various foodgrains, sugarcane and several fruits and the Yogi Government since its first term has laid special emphasis on promoting agricultural products and food processing to increase the products’ presence in domestic and foreign markets.
The government has brought the UP Food Processing Industry Policy-23, providing many concessions and subsidies to the entrepreneurs in different segments in order to promote the products. Besides, the new policy also exempts investors in the food sector from paying stamp duty on setting up of a unit, Mandi Fee and Development Fee, while reducing the loss incurred by investors and using startups in production, the statement added.

According to the statement, as food processing industries are typically micro and small scale, mostly located in rural areas, independent power industrial feeders for them would not be a viable option. The Yogi government has decided to give a 50 per cent subsidy to investors for setting up solar power plants of up to 75 KVA. The government has also decided to give a 90 per cent subsidy to food processing units owned and operated by women.

Since Uttar Pradesh is a landlocked state, the government has also decided to provide, a transport subsidy of 25 per cent of the actual transport cost of exports of foodstuff to the entrepreneurs to make the food processing industry more competitive in the state.

The transportation cost will cover the shipping of the food product from the place of manufacturing/production in the state to the port of the importing country. Besides, a 35 per cent capital subsidy will be given to entrepreneurs on their expenditure on plant, machinery and technical civil works for the establishment of food processing units in the state with a maximum limit of Rs 5 crores. Not only this, a capital subsidy of 35 per cent will be given on the expenditure related to plant, machinery and technical civil work for the expansion of the units with a maximum limit of Rs 1 crore, the statement said.

According to the new UP Food Processing Industry Policy-23, if the Chak Road comes to the place where the food processing unit is set up, an investor won’t be required to pay 25 per cent of the amount on the circle rate. Earlier, for this, the investor had to pay 25 per cent of the value of the land along with giving land at another place equal to the land on Chak Road. Similarly, earlier, entrepreneurs setting up the food processing industry on CLU (Conversion of Land Use), were charged a 20 per cent circle rate on the agricultural land, who will now get a 50 per cent exemption on this.

The Yogi government has also announced a 75 per cent exemption in External Development Fees for entrepreneurs.

Earlier, the External Development Fee, in most cases used to be more than the rate of the land. The investors have also been exempted from paying stamp duty for setting up a food processing unit. This will be reimbursed by the Food Processing Department through the budget. Furthermore, the Mandi fees and cess will also be waived on agricultural products brought from other states for processing as it would increase employment and the revenue tax, the statement added. (ANI)