Creation/Expansion of food processing & preservation capacitiesMinistry of Food Processing
The Ministry of Food Processing Industries has introduced this scheme with an objective to create Food processing and preservation infrastructure in order to reduce food wastage, increase value addition and also enhance farmers’ income.
Pattern of Assistance
The assistance is given in form of Grant-in-Aid towards the capital cost in the following manner.
- For general areas grant-in-aid at 35% of eligible project cost
- For North-East states and Difficult areas at 50% of eligible project cost
- Maximum of Rs. 5 Crore per project.
Eligible Sectors
- Fruits & vegetables processing
- Milk Processing
- Meat/poultry/fish processing
- Ready to Eat / Ready to Cook Food Products/ Breakfast cereals/ Snacks / bakery and other food products including nutritional health foods
- Grains/pulses, oil seed milling and processing based on modern technology
- Modern Rice milling.
- Other agri-horti products including spices, coconut, soybean, mushroom processing, honey processing, etc.
- Fruits/ Honey based wines.
- Natural Food flavors, food additives/ food extracts & colours, oleoresins, guar gum, cocoa products etc.
- Manufacturing jaggery from sugarcane and value added products from jaggery (as raw material)
- Any other sector that makes food products fit for human consumption.
- Animal feed manufacturing unit to be set up in Mega Food Parks and Agro Processing Clusters approved by the Ministry from time to time.
- Carbonated Drinks and beverages containing fruit juice (conditional)
Ineligible Sectors under this Scheme:
- Sugar Mills
- Manufacturing of aerated water and packaged drinking water
- Farming activities such as dairy farming, poultry farming, mushroom farming, hatcheries etc.
Release of Grant
Grant is released in two equal installments each @50% of grant in the following manner:
- The first installment of grant is released after the firm has utilized 50% of the term loan as well as 50% of promoter’s contribution and on production of the required documents.
- The second installment is released on the commencement of commercial and submission of documents regarding utilization of 1st installment of grant and 100% of Term Loan as well as 100% of Promoter’s contribution.
Recall the grant
- If the project is not completed in time within the approved project period.
- If any applicant does not submit complete documents for release of 2nd & final installment of grants-in-aid as per scheme guidelines within two months from the date of start of commercial operation.
- If the assisted project stops its commercial operations within three (3) years from the date of commencement of commercial production of the project.
- If during such period, it comes to the notice of the Ministry that the grant has been availed by manipulating / concealment of information / facts or that the grant has been utilized for purposes other than those for which it was sanctioned.
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