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FOOD PROCESSING FUND- NABARD | Company Vakil

FOOD PROCESSING FUND- NABARD

A solid and lively food processing industry can help decrease food wastage, enhance esteem and fill in as a solid connection in the agro-value chain. Seeing an increased demand in food and food products, the government of India has given a special fund of Rs. 2000 in NABARD to issue direct tem loans at reasonable rates of interest to Designated Food parks (DFPs) and their food processing units. This article explains the food processing fund by NABARD in detail

ELIGIBILITY CRITERIA

All the food processing units at DEPs are eligible term loan by NABARD under food processing fund scheme. All the designated food parks included are:

  1. All mega food parks designated by MoFPI
  2. All food parks designated by MoFPI
  3. Food parks in exclusion of food processing industrial estates promoted by state governments
  4. All agro processing, food processing and multi product special economic zones
  5. De-notifies areas of SEZs promoted by MoFPI
  6. And any area with developed infrastructure which is designated as Food park by MoFPI

The fund loan can be used for augmentation or development and establishment of infrastructure required or modernization or recreation of additional infrastructure

All the processing activities eligible for term loan are given below:

  • Milk and dairy products
  • Vegetables, fruits, mushrooms, horticulture crops and other plantation crops
  • Fish and aquatic animals
  • Meat and poultry
  • Marine products
  • Pulses, oil crops, cereals and oil crops
  • Medicines, herbs and aromatic plants and forest products etc
  • Bakery items, confectionary and snacks etc
  • Ready to eat foods
  • Non alcoholic drinks, beverages
  • Carbonated drinks, energy drinks and packed water etc
  • Food colours and flavours, condiments, spices, ingredients, preservatives and all other food that may not be required in food processing
  • Health food and health drinks
  • And all other activities which are approved by competent authorities or designated food park establishment

All the post harvested processes which result in value addition and enhanced storage life, such as waxing, grinding, and labelling. Controlled ripening, cleaning, canning, freeze drying, freezing and product processing levels are also covered under eligible activities.

 

AMOUNT OF TERM LOAN

Individual entrepreneurs or companies can claim for term loan from the Food Processing Fund of NABARD till a maximum of 75% of net cost. The eligible items in the project cost will differ due to their different nature of project and usually constitutes site development, equipment and other assets, technology and consultancy charges, primary expenses etc.

The overall repayment of term loan taken will be analysed and looked over by NABARD with respect to the projected cash flow of the borrowing entity which can’t exceed 7 years. In accordance with the cash flows, grace period up to an ultimatum of 2 years can be taken into consideration for repayment of principal amount instalments. Still, you can pay the interest during the grace period.

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