Lok Sabha Question No. 1480 (UNSTARRED), answered on 2023-12-12
Subject: Incentives under PLISFPI
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Vivek Narayan Shejwalkar, Ranjeeta Koli

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 1480

ANSWERED ON 12 th  DECEMBER, 2023

## INCENTIVES UNDER PLISFPI

## †1480. SHRI VIVEK NARAYAN SHEJWALKAR: SHRIMATI RANJEETA KOLI:

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

- (a) the present status of Production Linked Incentive Scheme for Food Processing Industry (PLISFPI);
- (b) the budget earmarked by the Government for this scheme including the disbursement and utilization  of  incentive  amounts  under  the  PLISFPI  since  its  implementation  in 2021-22;
- (c) the claims processed and the various food product segments to which these incentives have been granted;
- (d) whether the Ministry has collaborated with industry experts, research institutions, or international partners to ensure the alignment of PLISFPI with global best practices and market demands;
- (e) if so, the details of such collaboration; and
- (f) whether the target of employment generation has been set under this scheme along with the details of its progress?

## ANSWER

## THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI PASHUPATI KUMAR PARAS)

(a) to (c) The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) was approved by the Cabinet on 31 st March 2021, with an outlay of Rs. 10,900 crores, to be implemented from FY 2021-22 to FY 2026-27. The scheme consists of three components: incentivizing  manufacturing  in  four  food  product  segments  (Ready  to  Cook/  Ready  to  Eat foods; Processed Fruits & Vegetables; Marine Products; and Mozzarella Cheese), promoting Innovative/Organic products of SMEs, and incentivising branding and marketing abroad for promoting Indian brands in the global market. Additionally, the PLI Scheme for promoting Millet-based Products was launched in the FY 2022-23 with an outlay of ₹800 crore, utilizing the scheme's savings.

The PLI beneficiaries have reported investment of ₹7,126 crore under the scheme, with sales of  ₹49,825  crore  upto  April-September  2023.  According  to  scheme  guidelines,  the  PLI beneficiaries  are  required  to  furnish  incentive  claims  for  a  specific  financial  year  by  31 st December of the following financial year. The disbursement status of incentives for FY 202122 is as follows:

| Segment                      |   Incentive Disbursed (₹ Crore) |
|------------------------------|---------------------------------|
| Processed Fruits &Vegetables |                          137.71 |
| Ready to Cook/ Ready to Eat  |                          362.35 |

| Marine Products   |   72.31 |
|-------------------|---------|
| Mozzarella Cheese |    8.91 |
| Organic Products  |    3.02 |
| Total             |  584.3  |

(d) & (e): During the formulation of PLISFPI, proactive steps were taken to align it with global best  practices  and  market  demands.  The  process  involved  active  engagement  with  various stakeholders,  including  industry  experts,  large-scale  manufacturers  and  SMEs,  etc.  An extensive consultative approach was adopted to gather inputs while formulating the scheme guidelines.  This  collaborative  effort  is  continuing  in  form  of  regular  engagements  with  the stakeholders for ensuring continued relevance and effectiveness of the scheme guidelines.

(f)  The scheme aims to generate employment for approximately 2.5 lakh persons. As of 30 th September 2023, Quarterly Review Reports from PLI beneficiaries  indicate the creation of employment for 2,37,335 persons.

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