Lok Sabha Question No. 5508 (UNSTARRED), answered on 2025-04-03
Subject: Setting up of Food Processing Units by Entrepreneurs
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Shrirang Appa Chandu Barne, Smt. Bharti Pardhi, Shri Kanwar Singh Tanwar

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 5508

TO BE ANSWERED ON 03 RD  APRIL, 2025

## SETTING UP OF FOOD PROCESSING UNITS BY ENTREPRENEURS

## 5508.   SHRI SHRIRANG APPA CHANDU BARNE: SMT. BHARTI PARDHI: SHRI KANWAR SINGH TANWAR:

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

- (a) whether  the  Central  Government  is  planning  to  encourage   entrepreneurs  to  set  up  of  food processing units including a commitment  to fast-track project approvals across the country; and
- (b) if so, the details thereof?

## ANSWER

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

(a) & (b): In  order to encourage entrepreneurs and ensure overall development of Food Processing Industries, Ministry of Food Processing Industries (MoFPI) has been incentivizing setting up/expansion of related infrastructure through its Central Sector schemes namely Pradhan Mantri Kisan SAMPADA Yojana  (PMKSY)  Scheme,  Production  Linked  Incentive  Scheme  for  Food  Processing  Industry (PLISFPI)  and  Centrally  Sponsored  -  Pradhan  Mantri  Formalization  of  Micro  Food  Processing Enterprises (PMFME) Scheme across the country. These schemes are not region or state 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. So far, MoFPI has sanctioned 1608 projects including 41 Mega food Parks, 394 Cold Chain projects, 75 Agro-processing Clusters projects, 526 Food Processing Units, 61 Creation of Backward & Forward Linkages and 44 Operation Greens projects under corresponding component schemes of PMKSY across the country till 28 th February, 2025.

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 202526 with an outlay of Rs.10,000 Crore. A total of 1,27,758 micro food processing enterprises have been approved for assistance under PMFME in the country till 28th February, 2025.

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, 171 proposals from 133 food processing  companies  have  been  approved  for  assistance  under  various  categories  of  the  PLISFPI scheme in the country till 28th February, 2025.

In  order  to  facilitate  transparency  and  expediting  the  project  proposals  under  the  Schemes PMKSY and PLISFPI, applications / proposals are invited by issuing Expression of Interests (EoIs) from time to time based on availability of funds, from all over the country. The proposals submitted by the  applicants  against  EoI  are  evaluated  based  on  the  eligibility  criteria  mentioned  in  the  extant applicable scheme guidelines. The projects are selected through the three tier appraisal system. After evaluation,  based  on  merit,  approvals  are  issued  to  the  eligible  proposals.  For  transparent  and  fast submission of applications, MoFPI has developed online portals for both the Schemes. Similarly, under PMFME also, applications are processed online on a Portal from the submission of applications till the release of financial assistance.

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