Lok Sabha Question No. 543 (UNSTARRED), answered on 2025-02-06
Subject: Scheme in Food Processing Sector
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Ms. Mahua Moitra

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 543

ANSWERED ON 06 th  FEBRUARY, 2025

## SCHEME IN FOOD PROCESSING SECTOR

## 543. MS MAHUA MOITRA:

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

- (a) the details of all schemes available for development of Food Processing industries;
- (b) whether the above said schemes are available to private entrepreneur/cooperatives and if so, the details thereof; and
- (c) the  details  of  the  ongoing  schemes  in  the  food  processing  sector  in  West  Bengal, district-wise?

## ANSWER

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

(a) In order to ensure overall development of Food Processing Industries, Ministry of Food Processing  Industries  (MoFPI)  has  been  incentivizing  setting  of  related  Industries  through Central  Sector  Schemes  namely  Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY), Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) and Centrally sponsored - Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) scheme. These schemes are not region or state specific but demand driven.

Under  sub-schemes  of  PMKSY,  MoFPI  provides  mostly  credit  linked  financial  assistance (capital  subsidy)  to  entrepreneurs  with  total  outlay  of  Rs.5520  crore  for  15th  Finance Commission Cycle.

MoFPI also provides financial, technical and business support for setting up/ upgradation of micro food processing enterprises under PMFME scheme. The scheme is operational from 2020-21 to 2025-26 with total outlay of Rs.10,000 crores.

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  being implemented over a six-year period from 2021-22 to 2026-27 with an outlay of Rs.10,900 crores.

(b) & (c) Ministry extends financial support to prospective entrepreneurs for setting up of different kinds of food processing industries across the country including all districts of West Bengal.

Project Execution Agency (PEA) / Implementing agencies /organizations such as Govt. / PSUs /  Joint  Ventures  /  NGOs  /  Cooperatives  /  Self  Help  Groups  (SHGs)  /  Farmer  Producer Organizations  (FPOs)  /  Farmer  Producer  Companies  (FPCs)  /  Private  Sector  companies/ Partnership firm / Proprietorship firms/individuals etc. are eligible for availing grants under these schemes of MoFPI.

Selection of proposals for financial assistance under these schemes is done as per the prefixed criteria prescribed in the respective scheme guidelines, which is available on Ministry website (www.mofpi.gov.in).

MoFPI has approved 1 Mega food Parks, 15 Cold Chain projects, 18 Food Processing Units, 1 Creation of Backward & Forward Linkages Projects under corresponding component schemes of PMKSY in West Bengal State till 31 st December, 2024.

A  total  of  90  micro  food  processing  enterprises  have  been  approved  for  assistance  under PMFME in West Bengal State till 31 st December, 2024.

So  far,  9  food  processing  companies  have  been  approved  for  assistance  under  various categories of the PLISFPI scheme in West Bengal State.

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

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (b)  &  (c)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  543  FOR  ANSWER  ON  06 TH  FEBRUARY,  2025 REGARDING 'SCHEME IN FOOD PROCESSING SECTOR'

## 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%ofeligible 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% of equipment cost.   |
|------|--------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

## 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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