The Indian government is envisaging an investment of Rs1 lakh crore in the food processing industry over the next five years, a major chunk of which it plans to attract from the private sector and financial institutions

The Union government is envisaging an investment of Rs1 lakh crore in the food processing industry over the next five years, a major chunk of which it plans to attract from the private sector and financial institutions, reports PTI.

The ministry of food processing industries wants to provide a fillip to the agricultural sector and reduce wastage by setting up mega food parks, cold storage chains as well as make investments in research & development and in training of personnel.

"We want to attract investments of Rs 1 lakh crore from the private sector in the food processing industry. Maybe financial institutions will invest about 50% in this," Union minister for food processing industries Subodh Kant Sahai told reporters on the sidelines of a CII Retail Summit in Mumbai.

He said that while the government plans to invest up to 10% in the sector, it would encourage more private and foreign investors to participate.

Mr Sahai said that the ministry has floated Expressions of Interest (EoIs) for setting up a total of 30 mega food parks across India by the end of the 11th Five Year Plan (2007-2012).

"Our allocation for the 11th Five Year Plan is Rs5,000 crore with a plan of setting up 30 mega food parks. We also want to set up cold storage chains to reduce rotting of agricultural produce. Ten mega food parks are already sanctioned, of which six are operational," Mr Sahai said.