OBJECTIVE OF A FOOD PROCESSING UNIT:

  • The main objective of the Scheme is creation of processing and preservation capacities and modernization/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage. The processing activities undertaken by the individual units covers a wide range of post-harvest processes resulting in value addition and/or enhancing shelf life with specialized facilities required for preservation of perishables. While expansion of processing capacity is necessary to increase the level of processing and reduce wastage, the induction of modern technology is intended to make a clear difference in terms of process efficiencies as well as improving the quality of the end product. The setting up of new units and modernization/ expansion of existing units are covered under the scheme.

 

  • Scheme is implemented through organizations such as Central & State PSUs/ Joint Ventures/ Farmer Producers Organization (FPOs)/ NGOs/ Cooperatives/ SHG’s/ Pvt. Ltd companies/ individuals proprietorship firms engaged in establishment/ up gradation/ modernization of food processing units.
  • Following food processing sectors are eligible to avail the assistance under the scheme:
a) Fruit & Vegetables
b) Milk product ( only value added milk product, excluding liquid milk )
c) Meat, Poultry, Fishery
d) Cereal /other consumer food products
e) Oilseeds products
f) Rice milling
g) Flour milling
h) Pulse processing and
i) Other such Agri-horticulture sectors including food flavors and  colors , oleoresins, spices, coconut,  mushrooms and hops.
(i) Compound wall, Administrative Office Building, Labour quarters for employees/ workers and any other civil work not directly related to the production and processing.
(ii) Cost of land for the project.
(iii) Fuel, consumables, spares and stores.
(iv) Computers, AC with ducting and allied office furniture.
(v) Personal Transport vehicles.
(vi) Second hand/ old machines / refurbished machinery.
(vii) Expenditure on painting of machinery.
(viii) Stationery items.
(ix) Pre-operative expenses, consultancy Fee, Margin Money, working capital, contingencies and the expenditure made by the applicant on the eligible project cost before the date of issue of sanction / approval letter by the Ministry shall not be considered as part of eligible project cost.  
  • Capital Investment subsidy 25% of eligible project cost subject to maximum Rs.50.00 lakhs for setting up/expansion & diversification/ modernization.
  • If assistance of capital investment subsidy for cold chain, food irradiation processing plants and pack house.
  capital investment subsidy 25% of eligible project cost subject to maximum Rs.500.00 lakhs.
  • If assistance of capital subsidy for creating primary processing centers/ collection centers in rural areas
  capital investment subsidy 25% of eligible project cost subject to maximum Rs.250.00 lakhs.
  • Assistance of Capital subsidy for Reefer Vehicles
 – Capital Investment subsidy 25% of eligible project cost subject to maximum Rs. 50.00 lakhs.
  • Food processing Unit :
–Back ended interest subsidy 7.5% on the Term loan with amount of Rs. 150.00 lakhs for a period of 5 years of setting up/ expansion & diversification / modernization of food processing units.
  • Food Infrastructural projects :
–Back ended interest subsidy 7.5% on the Term loan with amount of Rs. 400.00 lakhs for a period of 5 years of setting up Infrastructure project in food processing sector such as CA Cold  Storages, Food  Irradiation  processing plants , Silos, Pack Houses, Food Parks, Reefer  Vans etc.
  • Additional Back ended interest subsidy :
–1% additional interest subsidy SC/ST , Women Entrepreneurs, physically challenged.
–1% additional interest subsidy to Entrepreneurs below 35 years age.