A. SCHEME FOR THE SETTING UP OF FISH HANDLING / CURING / SOLAR DRYING FACILITY (WITH LPG BACK UP)

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1 Enclosure I A. SCHEME FOR THE SETTING UP OF FISH HANDLING / CURING / SOLAR DRYING FACILITY (WITH LPG BACK UP) 1. FISH DRYING TECHNIQUE Fish drying and processing methods vary from species to species. The most commonly acceptable method to produce hygienically safe dried fish is by mechanical drying with hot air which is acclaimed to be the efficient system for ensuring the quality of dried fish. Since the fish are dried all along the coast it is necessary to establish hygienic fish drying facilities / storage facilities along the coastal area. Based on the present export, it could be assumed that about 50,000 tons of fish is being dried every year all over the country. Use of non conventional energy like solar energy is possible in fish drying and the same is considered under the scheme. In a commercially viable solar fish drying facility, about 250 kg. of fish (raw material) can be dried every day. A facility which could handle one tone raw material can dry about 250 tons in a year (on the assumption that the unit will work for 250 days per year taking into consideration holidays and minimum shut down periods). About 20 such facilities need to be created along the Indian coast. 2. AREA / COST ESTIMATES a) Each of the facilities of one ton capacity will require the following infrastructure / area: Sl. No. Facility Area in Sq. ft. Fish handling, curing area 1 Pre-processing area for handling 1 ton/ day (Details given as 1600 follows) a Change rooms / rest rooms / toilet 400 b Raw material receiving area 200 c Chill room 100 d Washing and cutting area 450 e Salting area Area for solar drier 48 m Temporary storage (200 M 3 area i.e 64M 2area x3.1m height) 684 Total 1, 2 &

2 2 b) Cost details given in Table - 2 The total cost estimated for setting up of such facility for fish handling / curing solar drying area with a temporary storage will be about Rs lakh (Scheme A). The drying is proposed to be operated in the ground floor of the building with the help of solar drier system. The area of 2152 sq. ft required for placing solar panel could be found on RCC roof and no separate cost estimate is accounted for that area. There will be LPG back up facility to dry fish during rainy season. The flow chart for dried fish processing is given in Table 1. Detailed description of machinery and cost estimate of dried fish handling / curing /solar drying facility with LPG back up may be seen at 2 a) above and Table 2. At present, the construction cost of such dried fish handling / curing / solar drying / storage (20 M 3 ) facility will be Rs lakh (Scheme A) and the dry fish packaging / storage facility will be Rs lakh (Scheme-B) 3. FINANCIAL ASSISTANCE FROM MPEDA Considering the importance of fish drying and for production of quality products for domestic and export market MPEDA proposes to extend financial assistance as indicated below: It is proposed to provide financial 33⅓ % of the actual cost incurred for the setting up of the dried fish handling / curing / solar drying facility as prescribed in the scheme. The maximum eligible subsidy for fish curing, drying facility will be Rs lakh. A unit which can handle minimum 250 kg. raw material per day would be considered for assistance and MPEDA assistance for such a unit will be Rs lakh. Similarly, a unit with raw material capacity 500 kg. & 750 Kg. will get assistance of Rs lakh and Rs lakh respectively. Many beneficiaries can join together and set up a common facility of maximum 5 ton raw material capacity and in

3 3 such case the assistance will be a maximum of Rs lakh (Rs X 5). The cost of land will not be considered for assistance. During the remaining part of 11 th Plan period 20 such units will be assisted to the tune of Rs.470 lakh (Rs x 20). As far as possible the units will be located in the village / town where fish drying activities is concentrated. 4. METHOD OF IMPLEMENTATION The scheme will come into effect from the date on which Government of India approves the same. For a 1 ton capacity unit the facility shall be set up in own / leased land of 7 cents area with all facilities listed under 2.a above (in areas listed in Table 5) will be eligible for assistance. However, operation of the scheme in other areas will be subject to the discretion of the Technical committee of MPEDA. The area required for a 5 ton capacity unit will be 35 cents and in the case of 250 Kg. raw material capacity/day will be minimum 2 cents. Units under co-operative sector will also be considered for the financial assistance. The beneficiary will be assisted only once under the scheme. Land cost will not be considered for assistance The total area eligible for assistance for one ton capacity shall be 2800 sq. feet-new construction in RCC (see 2 a) above) The area covered for conventional drying methods in open sun will not be accounted for assistance. Complete building structures with RCC roofing only will qualify for assistance under the scheme. The design and layout for pre-processing, processing and storage shall conform to MPEDA guidelines permitting hygienic handling and processing of fish for drying as well as dried fish. Uni-directional flow of material shall be followed in the entire processing system in order to avoid cross contamination. MPEDA registration is a pre-requisite for grant of financial assistance under the scheme.

4 4 The beneficiary has to seek advance approval from the field office of MPEDA by producing land possession (encumbrance certificate) / other details including project cost, layout, estimate etc. The final application should be submitted in the prescribed format within one year from the date of advance approval. The final application in the prescribed form shall be submitted along with the following documents. - Bills / invoices with VAT component pertaining to the facility set up as insisted in the scheme. - CA certificate in prescribed form - Copy of the certificate of registration issued to the unit - Declaration-cum-undertaking in the prescribed form - Detailed civil work statement certified by Chartered Engineer towards the cost of Civil works undertaken 5. BUDGET PROPOSED Assistance under scheme A is proposed to be provided to 20 beneficiaries during the remaining part of 11 th Plan period as indicated. Year No.of Units Amount (Rs.in lakh) (@ Rs lakh x 5) Total See next page for scheme B

5 5 B. ASSISTANCE FOR THE SETTING UP OF DRY FISH PACKING AND STORAGE FACILITY BY DRIED FISH EXPORTERS REGISTERED WITH MPEDA The scheme proposed below is exclusively for the registered dry fish exporters of MPEDA. 1. PACKAGING MATERIALS Traditionally, materials like bamboo baskets, bales, jute sacks, wooden boxes and cardboard boxes are used for packing dried fish. These can only be used for packaging dried products which do not require water vapour oxygen barriers and under the prevailing climatic conditions are appropriate for commodities which are transported in large packages to a central marketing point and then sold loose. These packages can often be used several times and are usually cheap; the need for good hygiene must be emphasized. Inclusion of a low density polyethylene film lining in a traditional package can add substantial protection against uptake of water vapour. Better packaging materials if used in dried fish can add value to the end product. 2. STORAGE CONDITIONS Moisture, moulds, insects, mites, rodents and birds can cause deterioration in dried fish during storage. Deterioration by heat can be minimized by storing in a building with correct orientation, insulation and controlled ventilation. Moisture uptake can be greatly reduced by use of packaging materials, such as polyethylene films. Whatever the packaging material and whatever its size, the package should be stored with complete protection from rain / humid condition. In storage buildings the roof, walls, doors and ventilation openings should exclude windblown rain. If water absorption from the ground below is a problem, the floor must be supplied with a damp-proof course or the packaged goods should be stacked on pallets, boards, giving 100 mm floor clearance. Rodents and birds can be excluded from buildings by sealing all unnecessary openings, screening the ventilation openings and minimizing gaps around doors. Insects and mites can be eliminated by periodic, effective fumigation with phosphine

6 6 or methyl bromide. Stacked produce can be fumigated under gas-proof sheets. Fumigation of the building itself can also kill pests throughout the interior of the building but it is not always easily and effectively achieved. The need for hygienic grading / packing and storage facility is a must for dried fish sector. Though the export of dried fish is continuing from time immemorial no Governmental assistance is provided to this sector. To improve the existing condition and to realize more foreign exchange earning to the country through dried fish export the scheme is proposed. The scheme envisages dried fish exporters to establish their own grading / packing and storage facility for export. 3. OPERATION OF THE SCHEME: Scheme B will be limited to registered dried fish processors and exporters of MPEDA and the beneficiary will be eligible for the assistance only once. The beneficiary can also avail assistance under Scheme-A. However, such assistance could be availed only once by the beneficiary. Land cost will not be considered for assistance The minimum area eligible for assistance shall be 3000 sq. feet (-new construction in RCC with all facilities described under a and b below) Renovation will not qualify for assistance under the scheme a) Each of the facilities will require the following infrastructure / area: Sl. No. Facility Area in Sq. ft. 1 Change rooms / rest rooms / toilet Packing material store Dried fish receipt area and store Grading and packing area Storage for packed product (670 M 3 ) * Total 1 to * material weight will vary depending upon the moisture / salt content of the product and therefore, storage capacity cannot be mentioned.

7 7 b) Cost details Sl. Item No. 1 Constructed area for packing and storage facility (@Rs. 750 per sq. ft. for RCC structure with RCC roofing for Cost (Rs. lakh) sq.feet) 2 Cost of De-humidifier (3 no.s) Total 1 & The total cost estimated for setting up of such facility for dried fish packing will be about Rs lakh (Scheme B). The independent packing facility shall be registered with MPEDA and shall source dried fish from MPEDA registered dry fish processing units to qualify for assistance. Records should be maintained for a minimum 3 year period with reference to dried materials sourced / supplied to by the packer i.e. one step down and one step above. There shall be a 5-year tie up agreement between the dry fish processing unit and independent packing facility, a pre-requisite condition for availing assistance from MPEDA. In short, the beneficiary shall keep the facility in hygienic condition and shall periodically fumigate the facility to avoid pest infestation to the end product stored. He/She shall keep records of the product stored in the facility indicating the supplier of the product, to whom it was sold out and other relevant HACCP documents including schedule / actual fumigation process undertaken, when insisted upon.. The cost estimate of the dried fish grading, packing and storage facility (including workers facility ) is at Table FINANCIAL ASSISTANCE FROM MPEDA A dried fish exporter (merchant or manufacturer registered with MPEDA) will be eligible for a maximum assistance of Rs lakh under scheme - 33⅓ % of the actual cost incurred for setting up of the facility. Year No.of units to be assisted Amount (Rs.in lakh) (@ 8.25 x 5) Total

8 8 5. METHOD OF IMPLEMENTATION a) The scheme will come into effect from the date on which Government of India approves the same. The beneficiary shall have own land (required space) and shall seek advance approval for availing the scheme with land document, encumbrance certificate, lay out, estimate, project proposal etc. b) The beneficiary may set up the facility and meet the stipulated MPEDA standards but before one year after completion should submit the final application in the prescribed form along with the following documents. - Bills / invoices with VAT component pertaining to facility set up - CA certificate in prescribed form - Copy of the certificate of registration issued to the unit - Declaration-cum-undertaking in the prescribed form - Detailed civil work statement certified by Certified Engineer towards the cost of civil works undertaken The applications under both the schemes shall be submitted along with all supporting documents to Head Office will be scrutinized and then placed before a committee consisting of (1) Director (Chairman) (2) J D (Dev.) (3) A nominee of CIFT / NIPHATT / Dried fish Exporter s Association (4) DD (Dev.) Convener On the basis of the recommendations of the committee, the admissible subsidy will be sanctioned. The subsidy thus sanctioned will be released to the beneficiary after the facility is registered with MPEDA and shall fulfill the other conditions stipulated by MPEDA Chairman / authority from time to time. BUDGET PROVISIONS UNDER 11 TH PLAN It is proposed to assist about 40 units (20 fish handling / curing / drying yards + 20 dry fish packing and storage facilities) during the 11 th plan. The year wise breakup of the budget and other details are as follows:

9 9 b) YEAR WISE BREAK UP Rs. in lakhs A. Scheme for the setting up of fish handling / curing /solar drying facility (*) B. Assistance for the setting up of dry fish packing and storage facility Total % of subsidy : 33⅓ % of subsidy: 33⅓ Sl Year Rate No of Amount Rate No of Amount Nof Amount No. Rs. Units Rs. Rs. Units Rs Units Rs Total