Lok Sabha Question No. 5294 (UNSTARRED), answered on 2025-04-03
Subject: Special Grants to Amritsar
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Gurjeet Singh Aujla

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 5294

TO BE ANSWERED ON 03 RD  APRIL, 2025

## SPECIAL GRANTS TO AMRITSAR

## 5294.   SHRI GURJEET SINGH AUJLA:

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

- (a) whether the Government plans to provide special grants or incentives to establish food processing  units  in  Amritsar  and  nearby  areas,  considering  the  region's  rich  in agricultural and farm produce, if so, the details thereof;
- (b) the steps being taken to introduce special packages or schemes to support the farmers and entrepreneurs in setting up of food processing units including training, financial aid and marketing assistance;
- (c) the  efforts  made  by  the  Government  to  attract  investments  in  this  sector  to  boost employment, improve value addition to farm products and enhance economic stability in this border belt;
- (d) whether such initiatives would significantly contribute to the region's development and upliftment of the agricultural community, if so, the details thereof; and
- (e) whether the Government has any plans to set up ancillary units as subsidiary and if so, the details thereof?

## ANSWER

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

(a) to (e): In view of its rich agricultural and farm produce base, Ministry of Food Processing Industries (MoFPI) incentivizes entrepreneurs to establish related Industries in the Amristar district  of  Punjab,  through  its  Central  Sector  Pradhan  Mantri  Kisan  SAMPADA  Yojana (PMKSY)  Scheme,  Production  Linked  Incentive  Scheme  for  Food  Processing  Industry (PLISFPI)  Scheme  and  Centrally  sponsored  PM  Formalization  of  Micro  Food  Processing Enterprises (PMFME) scheme. These schemes are not region specific but demand driven and implemented across the country.

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 15 th Finance Commission Cycle. So far, till 28 th February, 2025, MoFPI has sanctioned 51 food processing projects under corresponding component schemes of PMKSY in Punjab, out of which 3 projects are located in Amritsar district. These 51 food processing projects expected to generate 29,000 direct/ indirect employment opportunities and benefiting about 2.58 lakh farmers.

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  have  been  approved  for  assistance  under  PMFME  scheme  in  Punjab,  till  28 th February, 2025, out of which 30 micro food processing enterprises located in Amritsar district. These  2,606  micro  food  processing  enterprises  expected  to  generate  7,818  direct/indirect employment opportunities.

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. So far, 9 food processing companies have been approved for assistance under various categories of the PLISFPI scheme in Punjab, till 28 th February, 2025 with estimated generation of direct/indirect employment opportunities of 2,446.

These schemes aim towards creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet which includes storage, transportation, value addition etc., thereby help in providing better returns to farmers and creating huge employment opportunities, reducing wastage of agricultural produce, enhancing productivity, increasing the processing level, which boosts rural economy and contribute in inclusive growth.

MoFPI does not set up food processing industries on its own. However, it incentivizes setting up of these Industries through grants/ subsidy to entrepreneurs. The projects are selected for assistance on the basis of Expression of Interest (EoI) issued from time to time. The schemes of MoFPI also provide support for training, marketing & branding. The details of incentives available under these schemes are at Annexure.

Apart from this, with the objective to boost investments and sourcing of Indian food products, MoFPI organized 3rd edition of a Mega Event, called 'World Food India (WFI)' during 19th to 22nd September 2024 at Bharat Mandapam, New Delhi to showcase domestic Industry and provide it with collaborative opportunities with international stakeholders. The event  brought  global  food  processing  companies,  innovators,  supply  chain  stakeholders, equipment manufacturers, etc. on a collaborative platform and provide foreign companies with tie-up/  business  opportunities  with  its  Indian  counterparts.  In  addition,  MoFPI  is  also organizing  the  WFI,  2025  to  highlight  investment  opportunities  and  advancements  in  food processing.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a)  TO  (e)  OF  LOK  SABHA UNSTARRED  QUESTION  NO.  5294  FOR  ANSWER  ON  03 RD APRIL, 2025 REGARDING 'SPECIAL GRANTS TO AMRITSAR'

## 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, maximumgrants- 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-aidof@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%ofequipment 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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