Incentive Scheme – Food and Processing Industry

• To expand food processing capacity
• To create employment opportunities of off-farm jobs
• To support for branding and marketing abroad to incentivise emergence of strong Indian brands
• ₹10,900 Crores outlay is targeted under this scheme

The Scheme has three categories

• First Category-Applicants are large entities who apply for Incentive based on Sales and Investment Criteria. Applicants under this category could undertake Branding & Marketing activities abroad also and apply for Incentives under the scheme. Under this category, the aim is to incentivize manufacturing of four major food segments viz
  • • Ready to Cook/ Ready to Eat (RTC/ RTE) including millet-based foods
    • Processed Fruits & Vegetables
    • Marine Products
    • Mozzarella Cheese

• Second Category– SMEs Applicants manufacturing innovative/ organic products across all the four food product segments of Category-I including Free Range – Eggs, Poultry Meat & Egg Products.

• Third Category-Applicants applying solely for Incentive for undertaking Branding & Marketing activities abroad to incentivize the emergence of strong Indian brands.

Category -I

Eligibility criteria for Category-I is based on total sale of food products and minimum investment. Segment wise criteria is given in below table.

*Minimum Investment shall only be on Plant & machinery, Technical civil works and Associated infrastructure 

Category II

Eligibility Criteria is based on following:
a) Udyog Aadhar/ Udyami Registered;
b) Achieved Minimum Sales of Rs 1 crore during 2019-20 for each of the innovative/ organic products proposed to be incentivized;
c) Applicant for Organic Product must be registered with APEDA for the organic product proposed to be incentivized

Category III

Eligibility criteria is as follows:

1. a) Incentive is extended for the promotion of only Indian Brands
2. b) Entities are required to submit a five-year plan or for balance period of the tenure of the scheme in the target markets for availing such assistance

c)The minimum expenditure for Incentive shall be Rs. 5 crore over a period of five years. In such case, an admissible grant would be Rs 2.5 crore.

Category-I

Incentive will be paid based on incremental sales in approved Product segment Applicants are required to obtain minimum growth over base year to be eligible to receive incentive. The minimum growth rate and minimum eligible incentive is as follows:

Note

Incentive= Incremental Sales in Approved Product Segment x corresponding Rate of Incentive

Category-II

SME Applicants for innovative/ Organic products are given Sales-based Incentive similar to that of Category-I 

Category-III

Applicants will be extended financial incentives @ 50% of expenditure on Branding & Marketing abroad subject to a maximum grant of   3% of Sales of food products or Rs 50 crore per year, whichever is less.

• Submit application to Project Management Agency (PMA) through portal https://plimofpi.ifciltd.com
• A non-refundable Application fee would be payable for each Application which is Rs 1,00,000 (Rupees One Lakh) for Category-I Applicants and Rs 10,000 (Rupees ten thousands) for Category-II Applicants. Under Category III Rs 10,000 (Rupees ten thousand) and Rs 50,000 (Rupees fifty thousand) would be payable by SME and other Applicants respectively
• Application can be submitted by 24.06.2021
• Project Management Agency (‘PMA’) would process the applications and make recommendations to Ministry of Food Processing Industries (‘MoFPI). On approval from MoFPI, PMA will issue letter to selected applicants

Category-I

Eligible applicants will be ranked on the basis of marks obtained in the evaluation criteria. Evaluation Criteria under this category is based on sales, exports and committed investment.

Category-II

Selection of applicants will be based on uniqueness of the product, patent, special characteristics, sales, investment made in last 3 years, availability of funds for investment, etc.

Category-III

Selection of applicant will be based on Level of recognition of their Brand, strategy and plan for production, sales, exports and branding of products in domestic and export markets

• Selected applicant has to be submit claim within 9 months from the end of Financial Year. Applications are to be on annual basis for the period April to March.
• The applicant has to submit calculation of sales along with certificate from Statutory Auditor in the case of a company and Independent Chartered Accountant in the case of Proprietorship, Partnership firm & LLP
• The applicant is also required to submit reconciliation of Sales based on which the claim is filed along with documents as prescribed by the PMA, by 31st of December of the financial year subsequent to which the claim pertains
• PMA will, process the application in 60 days and make recommendations to MoFPI. MoFPI after examination would approve the claims

Food and Processing Industry