The Cabinet Committee on Economic Affairs has approved the proposal of the Ministry of Food Processing Industries for continuing the Scheme of Technology Upgradation/ Establishment/ Modernization of Food Processing Industries during the 12^th Plan (2013-17) to meet the committed/spillover liabilities of the proposals received in the Ministry of Food Processing Industries during 11^th Plan (upto 31.03.2012), under the Scheme for an amount of Rs.740 crore during the 12^th Plan.

The Scheme has been one of the most popular of the Plan Schemes of the Ministry. As a result, a large number of applications were received, which could not be accommodated within the allocated budget during the 11^th Plan. Therefore, the committed liabilities have arisen, which are required to be met under the Central Sector by the Ministry.

The above scheme envisages back ended subsidy by way of grant-in-aid. Their cases would be considered for sanction by continuing the scheme during 12^th Plan (2013-17) to clear the committed/spillover liabilities of 11^th Plan.

The above Scheme has been subsumed w.e.f. April 1, 2012 under the newly launched Centrally Sponsored Scheme of National Mission on Food Processing (NMFP) in the 12^th Plan for implementation through State/ UT Governments. Thus all the eligible applicants under the Scheme will be sanctioned financial assistance by the respective State Governments w.e.f. April 1, 2012 and onwards in the 12^th Plan.

Scheme continuation of food processing subsidies to clear committed liabilities under central funding and state implementation oversight. Approval was granted to continue the Technology Upgradation/Establishment/Modernization of Food Processing Industries scheme to permit sanction and disbursement of back-ended subsidy by way of grant-in-aid for committed/spillover liabilities from the 11th Plan. The scheme has been subsumed w.e.f. April 1, 2012 into the National Mission on Food Processing, under which eligible applicants will receive financial assistance from their State/UT governments, while central responsibility remains for clearing carried-forward liabilities.