State Profile of Telangana

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• Food processing industry would be granted the status of a seasonal industry and would be eligible to get relief from minimum electricity demand charges during the closure period.

• Food processing industries will be eligible for electricity duty exemption for captive power plants for self use for a period of 5 years from commencement of commercial operation.

• Units established in the identified cluster would be eligible for an additional electricity rebate of Re 1 per unit via reimbursement over and above the rates as per T-IDEA scheme for a period of 5 years from the date of commencement of commercial operations.

• To promote food processing units to come up in the new and existing food parks, Additional Re.1 per unit rebate on electricity for a period of 5 years from the date of commencement of commercial operations. This benefit will be applicable to units availing assistance under KISAN SAMPADA yojana by ministry of food processing industries, government of India.

• Government of Telangana would incentivize development of new food processing units as well as modernization and expansion of existing food processing units in the state with Grant-in-aid of 35% of project cost up to 4 crores.

• Units developed in the identified cluster would be eligible for grant-in-aid of 35% of project cost up to Rs. 10 crores.

• Government would also support food parks with capital subsidy of 50%. The maximum limit of the grant will be evaluated on a pro-rata basis at the rate of Rs. 1 crore per acre subjected to an upper cap of 50 crores depending upon land size for areas where such project would enable development of a crucial cluster.

• Grant-in-aid of 35% of project cost up to Rs. 10 crores for for silos, warehouses, pack houses, cold storage, pre-cooling units etc. in identified areas.

• Grant-in-aid of 50% up to Rs. 10 crores for frozen storage, deep freezers, vapour treatment facilities and irradiation facilities.

• All food processing units and preservation facilities would be eligible for 50% grant upto Rs. 5 lacs for participating in domestic and global best practice certifications subjected to uninterrupted compliance to certification requirements. List of eligible certifications would be mentioned in the detailed guidelines..

• In order to promote mega projects which, bring in technology expertise and extensive backward and forward linkages, any project with net capital investment in plant and machinery more than Rs. 100 crore or providing employment to more than 1,500will be considered a Mega project. These projects will be eligible for tailor made incentives as per the provisions of Telangana state industrial policy.

• Interest subsidy on term loan in excess of 3% PA up to maximum 9% PA for 5 years with maximum limit of Rs. 2 crores (cumulative).

• 100% exemption from APMC fee for procurement of agriculture/ horticulture produce directly from farmers by food processing units.

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