Lok Sabha Question No. 5321 (UNSTARRED), answered on 2025-04-03
Subject: Financial Assistance for Setting Up of Food Processing Industrial Units
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Malvinder Singh Kang

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 5321

TO BE ANSWERED ON 03 RD  APRIL, 2025

## FINANCIAL ASSISTANCE FOR SETTING UP OF FOOD PROCESSING INDUSTRIAL UNITS

## 5321.   SHRI MALVINDER SINGH KANG:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state

- (a) whether the Government proposes to extend the financial assistance under the ongoing schemes for setting up of Food Processing Industrial Units;
- (b) if so, the details thereof;
- (c) the number of units extended financial assistance in Punjab during the last four years; and
- (d) the results achieved therefrom?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAVNEET SINGH)

(a) & (b): In order to promote and ensure overall development of Food Processing Industries across the country including Punjab, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/ expansion of related infrastructure through its Central Sector 'Pradhan Mantri  Kisan  SAMPADA Yojana (PMKSY) Scheme', Central Sector  'Production  Linked Incentive  Scheme  for  Food  Processing  Industry  (PLISFPI)'  and  Centrally  sponsored  'PM Formalization of Micro Food Processing Enterprises (PMFME)' Scheme. These schemes are not region specific but demand driven.

Under  PMKSY,  credit  linked  financial  assistance  (capital  subsidy)  is  provided  to entrepreneurs for setting up of food processing industries with total outlay of Rs 5520 Cr for 15th Finance Commission Cycle.

Under PMFME scheme, financial, technical and business support is provided for setting up / upgradation of micro food processing enterprises. The scheme is operational for a period of upto 2025-26 with an outlay of Rs.10,000 Crore.

PLISFPI  is,  inter  alia,  intended  to  support  creation  of  global  food  manufacturing champions and support Indian brands of food products in international market. The Scheme is operational for a period from 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores.

The details of incentives available under these schemes are at Annexure.

(c)  &  (d): MoFPI has, so far, approved a total of 3 Mega Food Parks, 3  Agro Processing Clusters,  24  Integrated  Cold  Chains  projects,  16  Food  Processing  Units,  4  Creation  of Backward  &  Forward Linkages and 1 Operation Greens projects in Punjab under corresponding  schemes  of  PMKSY  with  estimated  benefit  to  about  2.58  lakh  farmers  and generation of direct/ indirect employment opportunities of about 29,000.

Under PMFME scheme, financial, technical and business support is provided for setting up / upgradation of micro food processing enterprises. The scheme is operational for a period of upto 2025-26 with an outlay of Rs.10,000 Crore. A total of 2,606 micro food processing enterprises has been approved for credit linked subsidy in Punjab under PMFME Scheme with estimated generation of direct/ indirect employment opportunities of 7,818.

PLISFPI  is,  inter  alia,  intended  to  support  creation  of  global  food  manufacturing champions and support Indian brands of food products in international market. The Scheme is operational for a period from 2021-22 to 2026-27 with an outlay of Rs. 10,900 crores. A total of   9  proposals  under  different  categories  of  PLISFPI  scheme  have  been  approved  in Punjab  with estimated generation of direct/ indirect employment opportunities of 2,446.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  &  (b)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  5321  FOR  ANSWER  ON  03 RD APRIL, 2025 REGARDING 'FINANCIAL ASSISTANCE FOR SETTING UP OF FOOD PROCESSING INDUSTRIAL UNITS'

## Incentives available under Pradhan Mantri Kisan Samapada Yojana (PMKSY)

|   S. No. | Component Scheme                                                | Scheme Benefits (Grant-in- aid) for projects in General Area                                                                                                                                                                                                      | Scheme Benefits (Grant-in-aid) for projects in Difficult Areas as well as SC/ST, FPOs, SHGs                                                                                                                                                                                |
|----------|-----------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Integrated Cold Chain and Value Addition Infrastructure         | Grant-in-aid @ 35% of eligible project cost [subject to maximum of Rs.10 crores per project]                                                                                                                                                                      | Grant-in-aid @ 50% of eligible project cost [subject to maximum of Rs. 10 crores per project]                                                                                                                                                                              |
|        2 | Creation/ Expansion of Food Processing &Preservation Capacities | Grants-in-Aid @35% of eligible project cost [subject to maximum of Rs. 5 crores per project]                                                                                                                                                                      | Grants-in-Aid @50% of eligible project cost [subject to maximum of Rs.5 crores per project]                                                                                                                                                                                |
|        3 | Infrastructure for Agro-Processing Clusters                     | Grants-in-aid @35% of eligible project cost in General Area [subject to maximum of Rs. 10 crores per project]                                                                                                                                                     | Grants-in-aid @50% of eligible project [subject to max. of Rs. 10 crore per project]                                                                                                                                                                                       |
|        4 | Operation Greens                                                | Grants-in-Aid @35% of eligible project cost for Integrated Value Chain Development Projects, maximum grants-in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. | Grants-in-Aid maximum @50% of eligible project cost for Integrated Value Chain Development Projects, maximum grants- in-aid would be ₹15 crore per project; and for Standalone Post-Harvest Infrastructure Projects, maximum grants-in-aid would be ₹10 crore per project. |
|        5 | Food Safety and Quality Assurance - Food Testing Laboratories   | 100% grants-in-aid for Govt. organizations For Private organizations/ entities: grant-in-aid of @ 50% of the eligible cost                                                                                                                                        | For Private organizations/ entities: grant-in-aid of @ 70% of the eligible cost                                                                                                                                                                                            |

| 6.   | Human Resource & Institutions- Research &Development   | For Government Organizations - Grants @ 100% of equipment cost, consumables, For private organizations /universities/institutions, grant @50 %of equipment cost.   | For Government Organizations - Grants @ 100% of equipment cost, consumables For Private Organizations /Universities/ Institutions, Grants @70%ofequipment cost.   |
|------|--------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

## Assistance available under PLISFPI scheme:

- i. The  beneficiary  should  achieve  minimum  year  on  year  sales  growth  of  10%  for claiming incentive under Category-I, Category-II and Millet-Based Products components of the Scheme. Under Category -I component, the companies have to make committed investments to increase their production capacities.  If a company does not make  the  committed  investment  upto  end  of  2023-24,  it  is  not  eligible  to  receive incentives under the Scheme.
- ii. Under Category-III, i.e., Branding and Marketing component, a company is eligible for financial incentives @ 50% of expenditure incurred on Branding & Marketing abroad subject  to  a  maximum  of  3%  of  Sales  of  food  products  or  Rs  50  crore  per  year, whichever is less.  The minimum expenditure should be Rs. 5 crore over a period of five years.

## The details of assistance available to Micro Food Processing Enterprises under PMFME Scheme

- (i). Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
- (ii). Support to SHGs for seed capital: Seed  capital  @  Rs.  40,000/-  per  member  of  SHG engaged  in  food  processing  for  working  capital  and  purchase  of  small  tools  subject  to maximum of Rs. 4 lakh per SHG Federation.
- (iii). Support  for  Common  Infrastructure: Credit  linked  capital  subsidy  @35%  subject  to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.
- (iv). Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
- (v). Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

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