Financial Daily from THE HINDU group of publications
Monday, Mar 06, 2006
Financial Daily from THE HINDU group of publications Monday, Mar 06, 2006 |
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Money & Banking
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Credit Market Agri-Biz & Commodities - Foods & Food Processing States - Andhra Pradesh SBH to enhance credit to food processing units Our Bureau
Enhancing credit The SBH has lent Rs 7.5 crore to the complex of food processing units and the Union Government has offered an subsidy of Rs 4 crore.
Kakinada , March 5 The State Bank of Hyderabad is keen on enhancing credit to food processing units, as the Union Government is also offering a number of incentives to the sector and as there is great potential for setting up such units in Andhra Pradesh, especially in the coastal districts, according to Mr Amitabh Guha, Managing Director. Mr Guha was speaking to the press on Saturday evening at Food Park, set up by M.S Chowdary Agro Informatics (P) Ltd, at Surampalem village on the ADB road between Kakinada and Rajahmundry in East Godavari district. The SBH has lent Rs 7.5 crore to the complex of food processing units and the Union Government has offered an subsidy of Rs 4 crore. The promoters have contributed the rest of the project cost of Rs 17.3 crore. Food Court is coming up in an area of 85 acres. In the first phase, 40 plots will be developed and in the second 36. In the second phase, too, Rs 17.5 crore will be invested, according to one of the directors, Mr Ramu. Mr Guha said there was very little value addition in the agri sector, as there were no processing facilities and there were huge post-harvest losses. "Andhra Pradesh is the second largest producer of fruits and vegetables in the country, after Punjab. Yet a lot of the produce is wasted. Entrepreneurs, especially in the coastal districts, should come forward to set up processing units,'' he said. He said the SBH was lending nearly Rs 600-650 crore to the rice mills in the State and it stood second, after Andhra Bank, in extending credit to the sector. "We want to lend more, but our branch network in the coastal districts is limited in comparison with Andhra Bank's. We have 535 branches in the State and only 31 in the two Godavari districts where most of the rice mills are situated. We are trying to set up 12-15 branches more in the coastal districts in the coming financial year (2006-2007),'' he said. He said the SBH, the Andhra Bank and the Andhra Pradesh State Financial Corporation had signed a memorandum of understanding recently to extend finance to the small and medium enterprises in the State and it would come into effect from April 1. Mr Ramu said Food Park was the first of its kind to come up in the private sector in the State. It would have a common effluent treatment plant, a quality control lab and research station and common facilities centre. Mr K.V. Satyanarayana, Assistant General Manager, Nabard, said the bank would do its bit to promote processing units.
More Stories on : Credit Market | Foods & Food Processing | Andhra Pradesh
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