The Cabinet Committee on Economic Affairs (CCEA) today approved a proposal by Forum synergies (India) PE Fund Managers P Ltd to accept investments of up to $135 million from India Knowledge-Manufacturing Company under the foreign direct investment route and to issue Class B units and Class C units to the investing company.

The proposal would result in FDI of up to Rs650 crore, a government release said.

Processed food R&D: The CCEA also approved a proposal for the continuation of a scheme of research and development in the processed food sector during the 11th Plan period.

The government has allocated Rs250 crore over a period of five years for the scheme. The scheme has four components viz, R&D in processed food sector, setting up or upgradation of quality control or food testing laboratories, implementation of hazard analysis and Critical Control Points (HACCP) / ISO 22000, ISO 14000 / good hygiene practices (GHP) / Good Manufacturing Practices (GMP) quality / safety management systems and promotional activities.

The scheme will benefit all stakeholders and help the industry keep abreast technologically of international best practices and prepare them to face international competition.

The processed food R&D aims at development of new products and new cost-effective technologies for preservation and packaging for food products as also standardisation of various factors such as colouring agents, preservatives, pesticides residues etc, according to another release.