Lok Sabha Question No. 1603 (UNSTARRED), answered on 2020-02-11
Subject: Revision of Operational Guidelines for CEFPPC
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Midhun Reddy, Kotagiri Sridhar

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 1603

ANSWERED ON 11 TH  FEBRUARY, 2020

## REVISION OF OPERATIONAL  GUIDELINES FOR CEFPPC

## 1603. SHRI P.V. MIDHUN REDDY: SHRI SRIDHAR KOTAGIRI:

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

- (a) whether the Government has revised the Operational Guidelines for implementation of Scheme for Creation/Expansion  of  Food  Processing  &  Preservation  Capacities  (CEFPPC)  under  the Pradhan Mantri Kisan Sampada Yojana recently;
- (b) if so, the details  thereof;
- (c) the revised changes that have been brought in the Guidelines from the previous one;
- (d) whether the Government has had any consultations with stakeholders or State Governments before bringing out these revisions;  and
- (e) if so, the details    thereof?

## ANSWER

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

(a) : Ministry of Food Processing Industries (MoFPI) has revised the Operational Guidelines of Scheme for  Creation/Expansion  of  Food  Processing  &  Preservation  Capacities  (CEFPPC)  under  the  Pradhan Mantri Kisan Sampada Yojana and notified on 08.01.2020.

(b) & (c): The following changes have been brought in the Scheme Guidelines from the previous one:

- i. Clause-2: The carbonated drinks / beverages containing fruit juice / pulp more than 5% in case lime / lemon and more than 10% in case of other fruits may be considered for financial assistance under the Scheme. A maximum of two (2) units in a Mega Food Park (MFP) and one (1) unit in Agro Processing Cluster (APC) may  be sanctioned under this category
- ii. Clause-5: The proposals for creation/ expansion/ modernization of food processing  & preservation  units  has  been  restricted  to  Mega  Food  Parks  (MFPs),  Agro-processing  Clusters assisted  by  the  Ministry  except  Scheduled  Caste  (SC)  and  Scheduled  Tribe  (ST)  promoter(s). However,  in  State/UTs  having  no  Mega  Food  Park,  Agro  Processing  cluster,  units  may  be considered anywhere.
- iii. Clause-9(vi):  Applicants/  promoters  who have availed financial assistance  under any scheme of Ministry of Food Processing Industries (MoFPI), can apply again only after two years from the date of release of final installment of Grants-in-Aid. However, the Promoter(s) of Mega Food Parks and Agro  processing  clusters  approved  by  the  Ministry  who  are  desirous  to  set  up  units  in  their respective  Mega  Food  Park  &  Agro  Processing  Cluster  may  be  eligible  for  availing  financial assistance for more than one unit(s) under the scheme at any point of time.
- iv. Clause-15(ii):  If  any applicant  does  not submit  complete  documents  for  release  of  2nd  &  final installment of grants-in-aid as per scheme guidelines within two months from the date of start of commercial operation, the approval accorded to the applicant will be cancelled and grant may be recalled
- v. Appendix-I: Criteria  such  as  net  worth  of  the  applicant,  shareholding  of  women  entrepreneur(s), type  of  unit,  location  of  the  units  etc  has  been  added  /  modified  for  evaluation  of  proposals received  under  the  CEFPPC  Scheme.  The  revised  Criteria  for  Evaluation  of  proposals  is  at Annexure .

(d)  &  (e): The  revisions  in  the  Operational  Guidelines  of  Scheme  for  Creation/Expansion  of  Food Processing  &  Preservation  Capacities  (CEFPPC)  have been  made  based  on  the decision  taken  in  the Inter-Ministerial  Approval  Committee  (IMAC)  constituted  under  the  Scheme.  The State  Governments including  Central  Ministries/  Departments  and  National  Bank  for  Agriculture  and  Rural  Development (NABARD) are the members of the IMAC.

*****

ANNEXURE REFERRED TO IN REPLY TO PART (b) & (c) OF LOK SABHA UNSTARRED QUESTION NO. 1603 FOR ANSWER  ON  11 TH FEBRUARY,  2020  REGARDING  'REVISION  OF  OPERATIONAL GUIDELINES FOR CEFPPC'.

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

| Sl. No.   | Criteria for Evaluation of the proposal                                                                                           | Marks   | Max marks   |
|-----------|-----------------------------------------------------------------------------------------------------------------------------------|---------|-------------|
| 1         | Priority Sector                                                                                                                   |         |             |
|           | a. For Perishable Products (Fruits &Veg, Meat &Poultry, Milk &Aqua Products etc.)                                                 | 20      |             |
|           | b. For Consumer products (Bakery/Snacks/Breakfast cereals/RTE products etc.)                                                      | 10      | 20          |
|           | 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 loan >= 1.5 times of grant sought                                   | 15      |             |
|           | b. Proposed private investment including equity and unsecured loan < 1.5 times of grant sought                                    | 10      | 15          |
|           | For SC/ST, NER/ Himalayan States, Island areas& ITDP areas.                                                                       |         |             |
|           | a. Proposed private investment including equity and unsecured loan >= grant sought                                                | 15      |             |
|           | b. Proposed private investment including equity and unsecured loan < grant sought                                                 | 10      |             |
| 3         | Investment on Eligible Project cost                                                                                               |         |             |
|           | a. More than Rs.15 crore                                                                                                          | 12      |             |
|           | b. More than Rs 9 crore to 15 crore                                                                                               | 08      | 12          |
|           | c. Between Rs. 3 crore to 9 crore                                                                                                 | 06      |             |
|           | d. Below Rs. 3 crore (in case of SC/ST, NER/Himalayan States/ITDP/Island )                                                        | 04      |             |
| 4         | 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          |
|           | c.. Less than 1.5 times of proposed equity                                                                                        | 0       |             |
| 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      | 07          |
|           | d. Between 1.5 but less than 2.0                                                                                                  | 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 women in the firm)                                          | 02      | 05          |
| 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          |
|           | d. Special Training in Food Processing / Technology for a period not less six months from Govt. recognized University / Institute | 02      |             |
| 8         | Experience of applicant firm / promoter(s) in Food Processing:                                                                    |         |             |
| 9 10      | a. Food processing business having annual turnover of ₹3 crore and above during previous year                                     | 10      | 10          |
|           | b. Food processing business having annual turnover of ₹2 crore but less than ₹3 crore above during previous year                  | 7       |             |
|           | 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       |             |
|           | Introduction of innovative technology / processing in the project                                                                 | 04      | 04          |
|           | Type of unit                                                                                                                      |         |             |
|           | a. Setting up / creation of new unit (greenfield)                                                                                 | 05      |             |
|           | b. Expansion / modernization (brownfield)                                                                                         | 0       | 05          |
| 11        | Location of the units                                                                                                             |         |             |
|           | a. Mega Food Parks (MFPs) / Agro Processing Clusters (APCs) approved by MoFPI                                                     | 12      |             |
|           | b. Outside MFPs/ APCs                                                                                                             | 03      | 12          |
| Total     | Total                                                                                                                             | Total   | 100         |