Lok Sabha Question No. 392 (STARRED), answered on 2026-03-19
Subject: Agro-Processing Clusters
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri E T Mohammed Basheer

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA STARRED QUESTION NO. *392

ANSWERED ON 19 TH  MARCH, 2026

## AGRO-PROCESSING CLUSTERS

## *392. SHRI E T MOHAMMED BASHEER:

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

- (a) whether the Government is aware/has taken note that fund utilization under the AgroProcessing  Clusters  sub-scheme  declined  to  61.94  per  cent  in  2023-24  with  budget estimate for 2024-25 significantly reduced mirroring broader delays in documentation and clearances, if so, the details thereof; and;
- (b) the  details  of  the  measures  taken  by  the  Government  to  incentivize  proposals  from underserved  regions,  expedite  State-level  statutory  approvals  and  prevent  recurrence through performance audits or third-party evaluations?

## ANSWER

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

- (a) to (b): A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) & (b) OF LOK SABHA STARRED QUESTION NO. *392 ANSWERED ON 19 TH  MARCH, 2026 REGARDING 'AGRO-PROCESSING CLUSTERS'

(a) The  Ministry  of  Food  Processing  Industries  (MoFPI)  has  been  implementing  the Scheme  for  Creation  of  Infrastructure  for  Agro  Processing  Clusters  (APC),  a  component scheme of the Pradhan Mantri Kisan Sampada Yojana (PMKSY) for development of modern infrastructure  to  encourage  entrepreneurs  to  set  up  food  processing  units  based  on  cluster approach in the country since 2017. Scheme for Creation of Infrastructure for Agro Processing Clusters (APC) is a demand driven scheme. Applications under the scheme are invited online from the potential investors / entrepreneurs against Expression of Interest (Eol) issued by the Ministry from time to time.  Further, the utilization of funds depends upon the compliance of the  conditions  for  release  of  funds  by  the  Project  Implementing  Agencies  as  per  scheme guidelines. The details of Budget Estimates, Revised Estimates and Actual Expenditure during 2023-24 and 2024-25 are as under:-

(Rs. in Crore)

| Financial Year   |   Budget Estimates (BE) |   Revised Estimates (RE) |   Actual Expenditure (AE) | Percentage Utilization against RE   |
|------------------|-------------------------|--------------------------|---------------------------|-------------------------------------|
| 2023-24          |                    81.3 |                   51.016 |                     39.35 | 77.13%                              |
| 2024-25          |                    38.9 |                   47     |                     43.44 | 92.43%                              |

(b) The APC scheme is not state/district/region specific. However, under APC scheme, the following  relaxations  have  been  provided  to  incentivize  proposals  from  Difficult  areas including SC/ST entrepreneurs: -

- (i) Net worth required is equal to the grants-in-aid/subsidy sought for in case of proposals from Difficult areas/SC/ST category applicants in comparison to the 1.5 times of grants-in-aid/subsidy sought for General category applicants.
- (ii) Term Loan required is 10% of the total project cost in case of proposals from Difficult areas/SC/ST category applicants in comparison to 20% of the total project cost for General category applicants.
- (iii) Infusion of equity required is 10% of the total project cost in case of proposals from Difficult areas/SC/ST category applicants in comparison to 20% of the total project cost for General category applicants.
- (iv) The eligible grants-in-aid/subsidy is 50% of the eligible project cost in case of proposals  from  Difficult  areas/SC/ST  category  applicants  in  comparison  to  the  35%  of eligible project cost for General category applicants.

Ministry  regularly  monitors  the  projects  and  coordinates  with  the  project  implementing agencies  by  conducting  review  meetings  /site  visits  to  assess  the  progress  of  the  projects. Ministry, on the request of project implementing agencies, also takes up the matter with the department  concerned  of  State  Government  and  their  agencies  for  smooth  and  timely implementation. Ministry has also conducted a third-party impact evaluation study of Scheme for  Creation  of  Infrastructure  for  Agro  Processing  Clusters  (APC  scheme)  under  PMKSY, through M/s Quality Council of India (QCI) to assess and analyse the implementation, outcome and impact of the scheme on the projects approved under APC scheme.

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