Lok Sabha Question No. 2877 (UNSTARRED), answered on 2024-08-08
Subject: Subsidy for Start Up Companies
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Smt. Malvika Devi

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO. 2877

ANSWERED ON 08 TH  AUGUST, 2024

## SUBSIDY FOR START UP COMPANIES

## 2877. SMT. MALVIKA DEVI:

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

- (a)     the details of subsidies provided for start up companies to start food processing and packing units in small districts such as Kalahandi and Nuapada;
- (b) the number of new cold storage units to be provided in the coming years for Odisha particularly  Kalahandi  and  Nuapada  Lok  Sabha  Constituencies  along  with  the  details  of the subsidies being given/proposed to be given; and
- (c) whether  the  Government  proposes  to  establish  cold  storages  which  would  run  on solar energy and if so, the details thereof along with the proposed budget required for the same?

ANSWER

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

- (a) Ministry  of  Food  Processing  Industries  (MoFPI)  is  incentivizing   setting  up/ upgradation  of  Food  Processing  Industries  through  its  Central  Sector  Schemes,  named Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY),  and  Production  Linked  Incentive Scheme for Food Processing Industry (PLISFPI) and a Centrally Sponsored Scheme, named Prime  Minister  Formalization  of  Micro  Food  Processing  Enterprises  Scheme  (PMFME) across  the  country,  including  Kalahandi  and  Nuapada  districts  of  Odisha.  The  details  of assistance available under these schemes is placed at Annexure.
- (b) & (c) MoFPI neither set up food processing units on its own, nor its schemes support establishment  of  standalone  cold  storages  facilities.  However,  creation  of  integrated  cold storage infrastructure as part of food processing units are incentivized under relevant schemes, which are demand driven in nature.

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## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (a)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 2877 FOR ANSWER ON 08.08.2024 REGARDING 'SUBSIDY FOR START UP COMPANIES'

## Assistance available under sub-schemes of PMKSY

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

Grants-in-aid @ 35 % of eligible project cost in respect of general and 50% in respect of SC/ST/NER/Difficult region, subject to maximum of Rs.5 crore to Rs.15 crore per project, is  provided  for  setting  up  of  Food  Processing  Industries  under  different  sub-schemes  of PMKSY.  Certain concessions are also available to SC/ST/NER/Difficult region applicants.

An individual or organizations such as PSUs, Joint Ventures, NGOs, Cooperatives, Self  Help  Groups  (SHGs),  Farmer  Producer  Organizations  (FPOs),  Farmer  Producer Companies (FPCs), Partnership firm, including Startups, etc. are eligible for applying.

## Assistance available under PMFME Scheme

MoFPI  provides  financial,  technical  and  business  support  to  micro  food  processing enterprises through PMFME scheme with outlay of Rs.10,000 crore for a period of 5 Years (2020-21 to 2024-25). The details are as under:

- (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 is also available for other units and public to utilize on hiring basis for substantial part of the capacity.
- (iv) Branding  and  Marketing  Support: Grant  up  to  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)  to  meet  the  requirement  of  food  processing  industry  and  product  specific skilling. The training is provided through State Level Training Institutes (SLTIs).

## Assistance available under PLISFPI Scheme

PLISFPI is targeted to facilitate expansion of food processing capacity by creating champion brands in Food Processing Sector with total outlay of Rs.10,900 crore for a period of 6 years (2021-22 to 2026-27).

Under  PLISFPI,  incentives  are  extended  to  food  manufacturing  entities  with  stipulated minimum  "sales"  and  who  are  willing  to  make  stipulated  "investment"  for  expansion  of processing capacity and "branding" abroad.