Lucknow, June 21 (TIWN) With initiatives that include 35 per cent subsidy on loans to encourage smaller businessmen, a number of food processing units costing up to Rs 10 lakh, are being set up in Uttar Pradesh.

Several proposals seeking to modernize small scale industries in the villages and increase the capacity of food processing have been received by the Horticulture Department and are likely to be approved soon. 

The Yogi Adityanath government has set a target of promoting 9,301 micro food processing enterprises in the current financial year that will employ 20,000 people. 

The state government has taken several steps under the central government's Pradhan Mantri Micro Food Industries Upgradation Scheme, which will see setting up of a large number of food processing units in UP's countryside as well as in small towns in the coming years. 

The steps are aimed at helping the farmers get the best price for their produce in their neighbourhood, and at the same time, encouraging entrepreneurship and benefiting smaller businessmen.  The scheme is part of the Yogi Government's ongoing drive to accelerate development of the state through agriculture and agro-based industries.