Subodh Kant Sahai, Minister of Food Processing Industries gets candid in an exclusive interview with B&E
B&E: You recently mentioned that the industry needs Rs.1 trillion by 2015. Can this requirement be fulfilled, considering that the industry’s revenues are currently less than Rs.200 billion?
SKS: The extant policy permits FDI under the automatic route in most sectors/ activities, including Food Processing Industries. In fact, a total of 141 foreign direct investment inflows were approved in the food-processing sector during 11th Five Year Plan period (April 2007- March 2009) amounting to USD 171.72 million. As FDI can only supplement the domestic resource mobilisation, the government is taking steps to adequately address the requirement of capital by the industry.
B&E: The Ministry is pushing banks to open up a Food Processing Vertical for the sector and a proposed VC fund is being planned, with a targeted corpus of Rs.1 billion. What will these initiatives be aimed at?
SKS: Even though the Ministry is implementing a number of schemes for the development of the sector, additional measures such as these are aimed at increasing the flow of credit for the technology Upgradation/ Establishment /Modernization of Food Processing Industries for an upgradation of their processing capabilities. Apart from the above, these funds would cater to schemes like R&D, food quality and safety et al.
Read more.....
B&E: You recently mentioned that the industry needs Rs.1 trillion by 2015. Can this requirement be fulfilled, considering that the industry’s revenues are currently less than Rs.200 billion?
SKS: The extant policy permits FDI under the automatic route in most sectors/ activities, including Food Processing Industries. In fact, a total of 141 foreign direct investment inflows were approved in the food-processing sector during 11th Five Year Plan period (April 2007- March 2009) amounting to USD 171.72 million. As FDI can only supplement the domestic resource mobilisation, the government is taking steps to adequately address the requirement of capital by the industry.
B&E: The Ministry is pushing banks to open up a Food Processing Vertical for the sector and a proposed VC fund is being planned, with a targeted corpus of Rs.1 billion. What will these initiatives be aimed at?
SKS: Even though the Ministry is implementing a number of schemes for the development of the sector, additional measures such as these are aimed at increasing the flow of credit for the technology Upgradation/ Establishment /Modernization of Food Processing Industries for an upgradation of their processing capabilities. Apart from the above, these funds would cater to schemes like R&D, food quality and safety et al.
Read more.....
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Prof. Rajita Chaudhuri's Website
domain-b.com : IIPM ranked ahead of IIMs
Arindam Chaudhuri's Portfolio - he is at his candid best by Society Magazine
IIPM Best B School India
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM's Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society....
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
IIPM B-School Detail
