Daman-Diu Funds Locked as Coordination Gap Hits Food Processing Push

VAPI : A serious governance gap between the Union Territory administration and the Central Government has allegedly resulted in unutilised funds and stalled development schemes in Daman and Diu, raising concerns over the region’s slow progress in the food processing sector.

The issue came to light during a seminar organised by the Ministry of Food Processing in Vapi, where senior officials from Delhi, Daman-Diu Member of Parliament Umesh Patel, and several entrepreneurs discussed opportunities and challenges in developing the region as a food processing hub.

Despite multiple central schemes aimed at boosting small industries and self-help groups, stakeholders alleged that implementation on the ground remains weak, with allocated funds not reaching intended beneficiaries.

Speaking at the event, MP Umesh Patel highlighted a recurring administrative deadlock.“There are many possibilities for the food industry in Daman and Diu, but due to lack of coordination between the Central Government and the Union Territory administration, funds are not being released,” Patel said.

He added that while the Centre claims no proposals are received from the UT administration, local officials often respond that there are no eligible beneficiaries on the ground.

“On one side, the ministry says no proposals are submitted. On the other, the administration says there are no beneficiaries. Even in committee meetings, officials acknowledge the presence of self-help groups, but they are not visible in implementation,” he noted.

According to Patel, this disconnect has resulted in a situation where government schemes remain on paper, while budget allocations remain largely unused. He stressed that awareness about these schemes is also limited among local communities, further slowing progress.

The MP urged the Central Government to intervene with a special financial package and institutional support to transform Daman and Diu into a model region for food processing development.

He emphasised that the Union Territory has significant potential in agro-based industries, fisheries and small-scale food enterprises, which could generate employment and strengthen the local economy if properly supported.