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MoFPI for fixing cost norms of plants and equipment for processing
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Thursday, 03 June, 2021, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The Ministry of Food Processing Industries (MoFPI) has commissioned a report for fixing Cost Norms of Plant & Machinery and equipment required for Fruit and Vegetable processing. The final call on the report, however, will be taken by the ministry after receiving the comments from the stakeholders.
The Ministry has constituted a committee under the chairmanship of VC, NIFTEM, for fixing cost norms for infrastructure and processing facilities for working out eligible project cost for all the schemes under Pradhan Mantri Kisan Sampada Yojana (PMKSY).
According to MoFPI, the Committee has proposed the cost norms for Plant & Machinery and Equipment required for food processing indicating the general specifications of the machine and its capacity.
The costs were the basic cost of Plant and Machinery, exclusive of tax, freight, installation and commissioning charges (except in few cases where the same is specifically indicated).
Cost norms were determined for commonly used Plant & Machinery and Equipment required by the food processing industries.
These include Cost norms of plant & machinery and equipment for fruits & vegetables processing, cost norms for horticulture related activities (adopted from NCCD), cost norms for refrigeration vans, and fruit & vegetable pack houses.
Further the cost norms include specific equipment used in various sections processing lines for production of various products.
The recommendations were made based on the examination of cost of Plant & Machinery and Equipment received from Original Equipment Manufacturers (OEMs), inputs available with the members of the committee, feedback and consultations.
“The Ministry, based on the recommendations of the Committee and review thereupon, has determined the cost norms for the Plant & Machinery and Equipment for working out the Eligible Project Cost for the purpose of calculating the amount of grant as financial assistance to the projects under various schemes of the Ministry,” reads the statement of MoFPI.
The statement added that the cost norms for Plant & Machinery and Equipment have been fixed generally on the basis of OEM quotations of indigenous manufacturers for calculation of eligible projects cost or grant under the schemes of the Ministry.
“This will help promote indigenous machinery. Entrepreneurs desiring to import such machinery may bear extra cost on their own. Wherever indigenous brand manufacturers do not exist, the cost norm will be fixed on the basis of cost of the lowest OEM quotation of imported machinery,” says MoFPI.
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