Lok Sabha Question No. 4001 (UNSTARRED), answered on 2024-12-19
Subject: Grant for Setting up of FPUs
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Smt. Roopkumari Choudhary

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA

## UNSTARRED QUESTION NO. 4001 ANSWERED ON 19 Tth  DECEMBER, 2024

## GRANT FOR SETTING UP OF FPUS

## 4001.   SMT. ROOPKUMARI CHOUDHARY:

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

- (a) the types and number of grants available for setting up of food processing industries;
- (b) whether any grant is provided for setting up of Food Processing Units (FPUs) through Self-Help Groups/NGOs; and
- (c) if so, the mandatory eligibility/criteria for Self-Help Groups/NGOs to get the grant?

## ANSWER

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

(a)  to  (c).   Ministry  of  Food  Processing  Industries  (MoFPI)  has  been  incentivizing  setting up/expansion  of  Food  Processing  Industries  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.

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 are available on MoFPI website (www.mofpi.gov.in).  The  details of incentives available under these schemes  are at ANNEXURE.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) TO (c)  OF  LOK  SABHA UNSTARRED QUESTION NO. †4001 FOR ANSWER ON 19 TH  DECEMBER, 2024 REGARDING 'GRANT FOR SETTING UP OF FPUS'

## Incentives available under Pradhan Mantri Kisan Sampada 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 Organizations - 100% of consumables For Private /Universities/ Grants @   | Government Grants @ equipment cost, Organizations Institutions, 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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