The funding and support of the development of mega food processing operations and food parks has been declared a national priority by the chairman of India’s National Bank for Agriculture and Rural Development (NABARD), HK Bhanwala. NABARD is making available $20 billion to fund agro-processing units designated as food parks. The Reserve Bank of India has established the fund in NABARD which will provide the funds directly or through consortium arrangements. Guidelines released concerning the fund state that state governments, joint ventures, cooperatives, farmer and producer organizations, corporate companies, and entrepreneurs establishing food parks are eligible for funding. Food parks eligible for funding must be promoted by the Ministry of Food Processing Industries (MOFPI) and state governments, and be designated as a multi-product food processing operation. Eligible entities will be entitled to loan assistance up to 95% of the total project’s cost as assessed by NABARD.
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