OBJECTIVE:

  • 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.
  • Eligible Sectors
  • Following food processing sectors are eligible to avail the assistance under the scheme:
    ·   Fruit & Vegetable processing
    ·   Milk processing
    ·   Meat, Poultry, Fish processing
    ·   Ready to Eat/ Ready to Cook Food products/ Breakfast cereals/ Snacks/ bakery and other food products including nutritional health foods
    ·   Grains/ Pulses, Oil seed milling and processing based on modern technology
    ·   Modern Rice milling
    ·   Other agri-horticulture products including spices, coconut, soybean, mushroom processing, honey processing, etc.
    ·   Fruits / Honey based wines
    ·   Natural Food flavors, food additives / food extracts & colors, oleoresins, guar gum, coco products etc.
    ·   Manufacturing jiggery from sugarcane and value added products from jiggery (as raw material) except sugar mills
    ·   Any other sector that makes food products fit for human consumption.
    ·   Animal feed manufacturing
       
  • UNIT TO BE SET UP IN MEGA FOOD PARK AND AGRO PROCESSING CLUSTERS APPROVED BY THE MINISTRY FROM TIME TO TIME. 
     ·   The activities related to manufacturing of aerated water and packaged drinking water will not be considered for financial assistance under the scheme. However, the carbonated drinks / beverages containing fruit juice / pulp more than 5% in case lime / lemon and more than 10% in case of other fruits will be considered for financial assistance under the scheme. A maximum of two (2) units in a Mega Food Park and one unit in agro processing cluster will be sanctioned under this category.
     ·   Farming activities such as dairy farming, poultry farming, mushroom farming, hatcheries etc. are not eligible sector under the scheme.
  • Includes the cost of plant & Machinery and Technical civil work including applicable taxes except for ineligible items as mentioned in para 8 above. Cost of ‘Utilities’ essential for the plant i.e. Water pipeline, DG set, Transformer, Boiler, Solid waste treatment plant, ETP, etc. will be considered under eligible project cost subject to restriction of above cost being maximum 25% of the total project cost.
  • The cost norms notified by MIDH/ NHB/ MoFPI, wherever available, shall be applied while calculating the eligible project cost and grants-in-aid for the proposals received under the scheme.
  • The processing units undertake a wide range of processing activities which result in value addition, enhancing shelf life of the products and reduction of wastage. An indicative list of processing activities as integral part of the main processing units is given below.
1. Sorting, grading, washing, peeling, cutting, sizing.
2. Blanching, crushing, extraction, pulping.
3. Drying, de-husking, de-hulling, splitting, depoding, deseeding, colour sorting, pulverization, extrusion, freeze drying / dehydration, frying, etc.
4. Pasteurization, homogenization, evaporation, concentration, etc.
5. Packaging facilities like canning, aseptic packaging, vacuum packaging, bottling, edible packaging, labelling, any other specialized packaging etc.
6. Chemical preservation, pickling, fermentation or any other specialized facility required for preservation activities etc.
7. Individual Quick Freezing (IQF), blast freezing, plate freezing, spiral quick freezing etc.
8. Controlled temperature transport like coolers / refrigerated / insulated / ventilated transport.
9. All other processing / preservation/ transport / storage facilities etc. adjunct to value addition and shelf life enhancement of food products would be eligible. Standalone activities like temperature controlled transportation/ storage facilities etc. will not be considered under this scheme. The project should include and result in creation/ increase in processing capacity.
Note: The above list is only illustrative and not exhaustive. Food Processing Industry is fast growing industry and several innovative processing technologies are being developed day by day which can also be considered under this Scheme if deemed fit.  
  • Eligible project components for grant includes the cost of plant & Machinery and Technical civil work. Cost of ‘Utilities’ essential for the plant i.e. Water pipeline, DG set, Boiler, Solid waste treatment plant, ETP etc. are also considered under eligible project cost subject to restriction of above cost being maximum 25% of the total project cost.
The scheme envisages financial assistance to food processing units in the form of grant-in-aid as under:
  1. 35% of the eligible project cost subject to a maximum of Rs.5.00 crore in general areas.
  2. 50% of the eligible project cost subject to a maximum of Rs.5.00 crore in north eastern states (Including Sikkim) and difficult areas i.e. Himalayan states/UTS (Himachal Pradesh, Uttarakhand, Ladakh, Jammu and Kashmir), state notified ITDP areas and islands (union territories of Andaman& Nicobar and Lakshadweep)