Lok Sabha Question No. 427 (UNSTARRED), answered on 2020-02-04
Subject: Implementation of CEFPPC Scheme
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Rebati Tripura, Dhanush M Kumar, Soyam Babu Rao, Ganesan Selvam, Gautham Sigamani Pon, Heena Vijaykumar Gavit

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 427

ANSWERED ON 04 TH  FEBRUARY, 2020

## IMPLEMENTATION OF CEFPPC SCHEME

## 427. SHRI REBATI TRIPURA:

SHRI DHANUSH M. KUMAR:

SHRI SOYAM BAPU RAO:

SHRI SELVAM G.:

SHRI GAUTAM SIGAMAANI PON:

DR. HEENA GAVIT:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether the Government is implementing the Creation/Expansion of Food Processing and Preservation Capacities (CEFPPC) scheme, if so, the present status and the achievement by the scheme since its inception especially, State-wise;
- (b) whether  an  Inter-Ministerial  Approval  Committee  (IMAC)  has  approved  project  worth Rs. 271 crore under the CEFPPC scheme, if so, the details thereof and the criteria fixed for this purpose;
- (c) whether the Government is focusing on projects that emphasized on linking agriculture and marketing food processing technologies, if so, the details thereof;
- (d) whether the Government has set any target in the scheme for generation of employment, if so, the details thereof; and
- (e) the other steps taken/being taken by the Government in linking agriculture and marketing food processing technologies?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

(a) : Yes Sir. Ministry of Food Processing Industries (MoFPI) is implementing a Scheme for Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for creation/expansion of food processing industries in the country. As on date, 219 food processing units have been approved under the scheme since inception. The state-wise number of units approved, grants-in-aid sanctioned and released under the scheme is at Annexure-I .

(b): Intern-Ministerial  Approval  Committee  (IMAC)  has  approved  219  projects  under  the scheme in the country till date with total project cost of Rs. 2989.18 Crore including grant-in- aid of  Rs.  821.41  crore.  The  criteria  prescribed  in  the  scheme  guidelines  dated  08.01.2020  for evaluation / selection of the proposals is at Annexure-II .

(c): MoFPI  gives  additional  weightage  to  projects  focusing  on  adoption  of  modern  / innovative food processing technologies and also utilization of perishable agriculture produce by the units. The Government has approved a target of 85,000 direct & indirect employment under the

(d): scheme for 400 food processing units during 14th Finance Commission cycle.

(e): MoFPI  is  also  implementing  Mega  Food  Parks  (MFPs)  and  Agro  Processing  Clusters (APCs) schemes which aim at providing modern infrastructure facilities for the food processing along the value chain from the farm to the market based on the cluster approach. This will result in setting up of more food processing units in agricultural production clusters.

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ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO.  427  FOR  ANSWER  ON  04 TH   FEBRUARY,  2020 REGARDING  'IMPLEMENTATION  OF CEFPPC SCHEME'

Details of State-wise approved food processing units and grants-in-aid sanctioned / released under the Scheme for Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC) of Pradhan Mantri Kisan Sampada Yojana (PMKSY) as on 30.01.2020

| Sl. No   | State             |   No. of units approved |   Amount of Grant-in-Aid Approved (Rs. in Crore) |   Amount of Grant Released (Rs. in Crore) |
|----------|-------------------|-------------------------|--------------------------------------------------|-------------------------------------------|
| 1        | Andhra Pradesh    |                       2 |                                             8.48 |                                      0    |
| 2        | Arunachal Pradesh |                       1 |                                             5    |                                      0    |
| 3        | Assam             |                       4 |                                            16.89 |                                      6.9  |
| 4        | Bihar             |                       1 |                                             5    |                                      0    |
| 5        | Chhatisgarh       |                       1 |                                             5    |                                      2.5  |
| 6        | Goa               |                       1 |                                             2.9  |                                      0    |
| 7        | Gujarat           |                      24 |                                            94.15 |                                      5.93 |
| 8        | Haryana           |                      15 |                                            55.01 |                                     13.65 |
| 9        | Himachal Pradesh  |                      16 |                                            52.42 |                                     11.08 |
| 10       | Jammu & Kashmir   |                      16 |                                            51.55 |                                      7.34 |
| 11       | Jharkhand         |                       0 |                                             0    |                                      0    |
| 12       | Karnataka         |                      11 |                                            33.36 |                                      6.77 |
| 13       | Kerala            |                       9 |                                            32.74 |                                      4.6  |
| 14       | Madhya Pradesh    |                       7 |                                            32.86 |                                     12.36 |
| 15       | Maharashtra       |                      29 |                                            93.82 |                                     13.46 |
| 16       | Manipur           |                       0 |                                             0    |                                      0    |
| 17       | Meghalaya         |                       1 |                                             1.36 |                                      1.36 |
| 18       | Mizoram           |                       1 |                                             2.04 |                                      0    |
| 19       | Nagaland          |                       4 |                                            19.87 |                                      9.94 |
| 20       | Odisha            |                       2 |                                            10    |                                      7.5  |
| 21       | Punjab            |                       5 |                                            21.21 |                                     11.1  |
| 22       | Rajasthan         |                       9 |                                            29.34 |                                      9.89 |
| 23       | Sikkim            |                       1 |                                             5    |                                      0    |
| 24       | Tamil Nadu        |                      19 |                                            72.44 |                                     31.3  |
| 25       | Telangana         |                       2 |                                             9.29 |                                      0    |
| 26       | Tripura           |                       2 |                                            10    |                                      0    |
| 27       | Uttar Pradesh     |                      19 |                                            78.88 |                                     32.5  |
| 28       | Uttarakhand       |                      11 |                                            50.49 |                                      0    |
| 29       | West Bengal       |                       6 |                                            22.31 |                                      3.17 |
| 30       | A&N Islands       |                       0 |                                             0    |                                      0    |
| 31       | Chandigarh        |                       0 |                                             0    |                                      0    |
| 32       | D&N Haveli        |                       0 |                                             0    |                                      0    |
| 33       | Delhi             |                       0 |                                             0    |                                      0    |
| 34       | Daman &Diu        |                       0 |                                             0    |                                      0    |
| 35       | Lakshdweep        |                       0 |                                             0    |                                      0    |
| 36       | Pondicherry       |                       0 |                                             0    |                                      0    |
|          | Total             |                     219 |                                           821.41 |                                    191.35 |

## ANNEXURE REFERRED TO IN REPLY TO PART (b) OF LOK SABHA UNSTARRED QUESTION NO. 427 FOR ANSWER ON 04 TH  FEBRUARY, 2020 REGARDING 'IMPLEMENTATION OF CEFPPC SCHEME'

## Criteria for evaluation of proposals under Scheme for creation of food Processing & Preservation capacities

| Sl.   | Criteria for Evaluation of the proposal                                                                          | Marks   | Max marks   | Modifications approved by IMAC   |
|-------|------------------------------------------------------------------------------------------------------------------|---------|-------------|----------------------------------|
| No. 1 | Priority Sector                                                                                                  |         |             |                                  |
|       | a. For Perishable Products (Fruits &Veg, Meat &Poultry, Milk &Aqua                                               | 20      |             |                                  |
|       | Products etc.) b. For Consumer products (Bakery/Snacks/Breakfast cereals/RTE                                     | 10      | 20          | DPR/ Bank appraisal and IEM      |
|       | products etc.) c. For Non- Perishable Products (Grain/Pulse/Oil milling etc.)                                    | 05      |             |                                  |
| 2     | Leveraging of Investment in the project                                                                          |         |             |                                  |
|       | For General areas                                                                                                |         |             |                                  |
|       | a. Proposed private investment including equity and unsecured                                                    | 15      |             |                                  |
|       | loan >= 1.5 times of grant sought <                                                                              |         |             |                                  |
|       | b. Proposed private investment including equity and unsecured loan 1.5 times of grant sought                     | 10      |             |                                  |
|       | For SC/ST, NER/ Himalayan States, Island areas& ITDP areas.                                                      |         | 15          | DPR/ Bank appraisal              |
|       | a. Proposed private investment including equity and unsecured loan                                               | 15      |             |                                  |
|       | >= grant sought b. Proposed private investment including equity and unsecured loan <                             | 10      |             |                                  |
|       | grant sought                                                                                                     |         |             |                                  |
| 3     | Investment on Eligible Project cost                                                                              |         |             |                                  |
|       | a. More than Rs.15 crore                                                                                         | 12      |             |                                  |
|       | b. More than Rs 9 crore to 15 crore                                                                              | 08      | 12          | DPR/ CE Certificate.             |
|       | c. Between Rs. 3 crore to 9 crore                                                                                | 06      |             |                                  |
|       | d. Below Rs. 3 crore (in case of SC/ST, NER/Himalayan                                                            | 04      |             |                                  |
| 4     | States/ITDP/Island ) Net worth of the applicant                                                                  |         |             |                                  |
|       | a. More than 2 times of proposed equity                                                                          | 05      |             |                                  |
|       | b. 1.5 to 2 times of proposed equity                                                                             | 03      | 05          | Balance Sheet / CA Certificate   |
|       |                                                                                                                  |         |             | / Supporting Documents           |
| 5     | Debt Service Coverage Ratio (DSCR) based on Bank appraisal                                                       |         |             |                                  |
|       | a. 3.0 and above                                                                                                 | 07      |             |                                  |
|       | b. Between 2.5 but less than 3.0                                                                                 | 05      |             |                                  |
|       | c. Between 2.0 but less than 2.5                                                                                 | 03      |             | Bank Appraisal Report            |
|       | Between 1.5 but less than 2.0                                                                                    |         | 07          |                                  |
|       | d.                                                                                                               | 01      |             |                                  |
|       | e. Less than 1.5                                                                                                 | 00      |             |                                  |
| 6     | Women entrepreneur(s)                                                                                            |         |             |                                  |
|       | a. 100% shareholding of women in the firm                                                                        | 05      |             |                                  |
|       | b. Majority stake / shareholding (more than 50% and less than 100% of                                            | 02      | 05          | Relevant documents / ROC         |
|       | women in the firm)                                                                                               |         |             |                                  |
| 7     | Project Strength- The promoter(s) having professional / special training in food processing / technology         |         |             |                                  |
|       | a. M.Tech / Ph.D. in Food Processing / Technology                                                                | 05      |             |                                  |
|       | b. B.Tech in Food Processing / Technology                                                                        | 04      |             |                                  |
|       | c. Diploma in Food Processing / Technology                                                                       | 03      | 05          | Copy of Degree / Diploma /       |
|       | d. Special Training in Food Processing / Technology for a period not                                             | 02      |             | Certificate                      |
| 8     | Experience of applicant firm / promoter(s) in Food Processing:                                                   |         |             |                                  |
|       | a. Food processing business having annual turnover of ₹3 crore and                                               | 10      |             |                                  |
|       | above during previous year                                                                                       |         |             | Balance sheet, FSSAI license     |
|       | b. Food processing business having annual turnover of ₹2 crore but less than ₹3 crore above during previous year | 7       | 10          | etc.                             |
|       | c. Food processing business having annual turnover of ₹1 crore but less than ₹2 crore during previous year       | 5       |             |                                  |
|       | d. Food processing business having annual turnover of less than ₹1 crore during the previous year                | 3       |             |                                  |
| 9     | Introduction of innovative technology / processing in the project                                                | 04      | 04          | Relevant documents               |
| 10    | Type of unit                                                                                                     |         |             |                                  |
|       | a. Setting up / creation of new unit (greenfield) b. Expansion / modernization (brownfield)                      | 05      | 05          | Relevant documents               |
| 11    | Location of the                                                                                                  | 0       |             |                                  |
|       | Mega Food Parks (MFPs) / Agro Processing                                                                         | 12      |             | Relevant documents /             |
|       | units                                                                                                            |         |             |                                  |
|       | a. Clusters (APCs) approved by MoFPI                                                                             |         | 12          | notification                     |
|       | b. Outside MFPs/ APCs Total                                                                                      | 03      | 100         |                                  |

A proposal would have to obtain a minimum of 60 marks in order to become eligible for consideration of grant-in-aid.