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 processing
b) Milk processing
c) Meat, Poultry, Fish processing
d) Ready to Eat/ Ready to Cook Food products/ Breakfast cereals/ Snacks/ bakery and other food products including nutritional health foods.
e) Grains/ Pulses, Oil seed milling and processing based on modern technology.
f) Modern Rice milling.
g) Other agri-horti products including spices, coconut, mushroom processing, honey processing, etc.
h) Fruits / Honey based wines,
I ) Natural Food flavors, food additives / food extracts & colors, oleoresins, guar gum, coco products etc.
j ) Any other sector that makes food products fit for human consumption. 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 will be considered under eligible project cost subject to restriction of above cost being maximum 25% of the total project cost.
Maximum Eligible project cost Up to 25cr. And maximum subsidy amount 2.5cr.
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.
(iv) Pasteurization, homogenization, evaporation, concentration, etc.
(v) Packaging facilities like canning, aseptic packaging, vacuum packaging, bottling, edible packaging, labelling, any other specialized packaging etc.
