Lok Sabha Question No. 86 (STARRED), answered on 2026-02-05
Subject: Progress under PMKSY
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Adv. Chandra Shekhar

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION NO. 86

ANSWERED ON 05 TH  FEBRUARY, 2026

## PROGRESS UNDER PMKSY

## *86. ADV. CHANDRA SHEKHAR:

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

- (a) the  detailed  physical  and  financial  progress  made  under  the  Pradhan  Mantri  Kisan SAMPADA Yojana (PMKSY) during the year 2025-26 as on January 2026 including the number of projects approved and projects completed or operationalised out of total 1,134 projects against the total outlay of ₹ 6,520 crore (with additional ₹ 1,920 crore in July 2025) and the Revised Estimate of ₹ 3,571.57 crore along with the reasons for any shortfall in utilisation of funds;
- (b) the  specific  remedial  actions  taken  by  the  Government  to  overcome  project  delays, pending subsidy releases and persistent post-harvest losses; and
- (c) the measures adopted by the Government to align the scheme with the recommendations of  the  International  Monetary  Fund  (IMF)  for  more  targeted  and  fiscally  efficient subsidies in agro-processing infrastructure?

## ANSWER

## THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI CHIRAG PASWAN)

- (a) to (c):

A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. *86  ANSWERED  ON 05TH FEBRUARY 2026 REGARDING 'PROGRESS UNDER PMKSY'

(a) The Ministry of Food Processing Industries (MoFPI) is implementing a Central Sector Umbrella  scheme  'Pradhan  Mantri  Kisan  SAMPADA  Yojana  (PMKSY)'.  Total  outlay approved under PMKSY for Fifteenth Finance Commission (15th FC) cycle is ₹ 6520 crore which include ₹ 4600 crore approved initially in January, 2022 and an additional outlay of ₹ 1920 crore approved by the cabinet on 31.07.2025.

Applications / proposals are invited from eligible entities as per the extant scheme guidelines of the relevant sub-scheme under PMKSY through floating of Expression of Interest from time to time based on availability of funds. Gestation period for completion of projects in respect of sub-schemes of PMKSY varies from 18 to 30 months and funds are released on reimbursement basis in 2 to 3 instalments after submission of requisite documents as per the guidelines of the concerned sub-scheme.

Further, as per the progress/requirement under the PMKSY component schemes, an amount of ₹ 3,489 crore has been allocated in the Revised estimates for 15 th  FCC. Under PMKSY as on 31.12.2025, 1607 number of projects have been approved. Out of which, 1196 projects have been completed/operationalised and remaining 411 projects are at various stages of implementation.

During the Financial year 2025-26, as on date, 36 number of projects have been approved under the PMKSY scheme with a Grant-in-aid of ₹130.21 crore, and all of them are currently under implementation. In the same year, 84 number of projects including projects approved in previous  years,  have  been  completed/operationalised  with  a  total  released  grant-in-aid  of  ₹ 752.90 crore.

(b) The Ministry is making continuous efforts to ensure timely completion of projects and timely release of approved grants, under component schemes. The remedial actions taken by Government to overcome Project delays and delay in subsidy released and thus reduce postharvest losses are as under:

(i) Ministry  and  the  Project  Management Agencies  (PMAs)  engaged  under  component schemes of PMKSY are interacting regularly with the Project Implementing Agencies (PIAs) of  approved  projects  and  are  guiding  and  assisting  them  in  timely  implementation  of  the projects.

- (ii) Regular review meetings, virtual verifications and physical site inspection of projects are conducted by the Ministry and PMAs for smooth and timely completion of the projects.
- (iii) Ministry on the request of PIAs, also takes up the matter with the concerned State/UTs Government and their agencies for smooth and timely implementation.
- (iv) Further,  to  ensure  the  seriousness  of  the  PIAs  for  implementation  of  the  approved projects,  Ministry  has  incorporated  the  clause  regarding  submission  of  the  bank  guarantee (@5% of approved grants-in-aid/subsidy) as performance security. The same may be forfeited by the Ministry in case of non-implementation of the project.

(v) Penalty  up  to  10%  of  approved  grant  in  aid  on  the  promotors  in  case  of  delayed completion of projects

- (c) While  the  International  Monetary  Fund  (IMF)  has  not  issued  any  scheme-specific recommendations for the Pradhan Mantri Kisan  SAMPADA  Yojana  (PMKSY),  the Government has undertaken several measures under PMKSY that are consistent with the IMF's broader  principles  contained  in  IMF  'Staff  Report  (No.  25/54)  for  the  2024  Article  IV Consultation' advocating targeted, transparent, and fiscally efficient subsidies.

PMKSY is implemented as a Central Sector, demand-driven scheme with built-in provisions to ensure targeted delivery and fiscal efficiency of financial assistance. The applications are invited through Expression of Interest (EoI) from all over India including Uttar Pradesh. Merit based approvals are given to the eligible proposals based on availability of funds and grantsin-aid are released in instalments strictly on a reimbursement basis, linked to actual expenditure and physical progress of the concerned project.

Further, financial assistance under PMKSY is provided as a partial support to the total project cost (35-50%) subject to a maximum of ₹ 5 crore, ₹10 crore and ₹ 15 crore under different component schemes of PMKSY, thereby leveraging private investment and ensuring efficient use of public funds. The scheme guidelines have a defined mechanism for appraisal, approval and regular monitoring to ensure effective implementation of the scheme, including scrutiny by Technical Committee and Project Approval Committee, periodic reviews, field inspections and third-party impact evaluation studies. These measures ensure that subsidies under PMKSY remain  well-targeted,  outcome-oriented  and  fiscally  prudent,  while  strengthening  food processing infrastructure across the country.

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