Setting Up/Up-gradation of Quality Control/Food Testing LaboratoriesMinistry of Food Processing

Development of food processing sector has necessitated the requirement of strengthening Quality Assurance and Food Testing Infrastructure. In order to assure availability of wholesome, hygienic and safe food and processed food to the consumer, compliance to the product and safety standards is basic regulatory requirement. Further, there is requirement for the food processing industry to (a) test domestic production in order to ensure that it complies with domestic standards as well as international standards for exports and (b) test imports coming into the country to ensure that they are of the requisite standard. The level of contaminants, additives, and pesticide residues in food items has to be monitored regularly. Therefore, need for a network of food testing and analysis laboratories was felt to support the Food Safety Regulatory activities and help the food processing industry in regard to quality control measures. The Scheme of setting up/ up-gradation of food testing laboratories is under implementation since 2005 and has created supporting infrastructure to assure quality of food being produced and manufactured in India, exported to other countries and also imported in India.

Pattern of Assistance

  • Government organizations are eligible for grants-in-aid of (i) entire (100%) cost of the eligible cost of the approved equipment (as per paragraph 3(a) above) and (ii) 2% of the eligible cost of the approved equipment or Rs.15.00 lakh, whichever is lower, towards Technical Civil Work (TCW) and Furniture & Fixtures (as per paragraph 3(b) above) on lump-sum basis.
  • Private organizations/ entities are eligible for grants-in-aid of (i) 50% (in General Areas)/ 70% (in Difficult Areas as well as for SC/ST applicants) of the eligible cost of the equipment (as per paragraph 3(a) above) and (ii) 2% of the eligible cost of approved equipment or Rs. 15.00 lakh, whichever is lower, towards Technical Civil Work (TCW) and Furniture & Fixtures (as per paragraph 3(b) above) on lump-sum basis.

Pattern of Release of Funds

A. First instalment (50 % of grants-in-aid):

  1. Acceptance Letter (Annexure-VI) and compliances to its enclosures.
  2. In case of up-gradation project, status of Regulatory Recognition under Integrated Assessment specifying regulatory body(ies) for the existing parameters.
  3. In case of private PIAs, details of the three bank accounts (current) maintained separately for (a) contribution by PIA, (b) term loan from the bank and (c) grants-in-aid from the Ministry, along with the availability of fund under respective accounts. While in case of Govt PIAs, details of the two bank accounts(current) maintained separately for (a) contribution by PIA and (b) grants-in-aid from the Ministry, along with the availability of fund under respective accounts.
  4. Certificate as per Annexure-VII indicating that at least 50% of the equity and 50% of the Term Loan has been spent on the project after the date of issue of approval letter by the Ministry.
  5. Geo-tagged photographs of the project from various angles and locations.
  6. Final term loan sanction letter from the Bank.
  7. Confirmation from bank that 50% of term loan of the total sanctioned term loan has been disbursed by the Bank.
  8. Building plan/ Blue Print/ Lay-out/ photo of the building.
  9. Utilization certificate of grant availed earlier from MoFPI (if any).
  10. Copies of Bank statements giving details of payment made to the suppliers.
  11. Detailed list of approved equipment procured and installed indicating the approved cost and actual cost as per Annexure-VIII (a).
  12. Details of Technical Civil Work and Furniture and Fixture purchased/ done in the food testing laboratory as per Annexure-VIII (b).
  13. Self-attested English/ Hindi version of land document in support of land title (ownership/ registered leasehold) in the name of PIA.
    Note: In case of registered leasehold land, duration of lease should not be less than 15 years.
  14. Notarised Surety Bond in prescribed format (Annexure-IX) on non-judicial stamp paper of not less than Rs. 100/- and Annexure-IX (a), a part of Surety Bond.

Note: (a) Original copy of Surety Bond shall be submitted to the Ministry through speed post.

(b) Surety Bond is not required to be executed by the Central/ State Government Department.

xv. Compliance of any other terms & conditions mentioned in the approval letter of the Ministry.

B. Second instalment (50% of grants-in-aid):

  1. Utilization Certificate generated through EAT Module of PFMS for the grants-in-aid released as 1st instalment signed by Authorised Signatory and Chartered Accountant (by Comptroller of Accounts /CFO/FO/Chief Accountant /Accounts Officer in case of Government organizations) along with seal.
  2. Certificate as per Annexure-VII indicating that 100% of equity, 100% of the Term Loan and 100% grants-in-aid released as 1st instalment has been spent on the project after the date of issue of Approval Letter by the Ministry, as applicable.
  3. Copies of Bank statements giving details of payment made to the suppliers.
  4. The detailed Status of NABL accreditation for the facility created.
  5. Detailed list of approved equipment procured and installed indicating the approved cost, actual cost and amount utilised out of MoFPI grant as per Annexure-VIII(a).
  6. Details of Technical Civil Work and Furniture and Fixture purchased/ done in the food testing laboratory under grant-in-aid released as per Annexure-VIII(b).
  7. Geo-tagged photographs of the project from various angles and locations.
  8. Confirmation from bank that full (100%) term loan of the total sanctioned term loan has been disbursed by the Bank.
  9. Self-declaration as to completion and commercialization of the project as per Annexure-X.
  10. Compliance of any other terms & conditions mentioned in the approval letter of the Ministry.
  11. Proof of prominent display on front of the project/ vehicles stating “Project is assisted by the Ministry of Food Processing Industries, Government of India”.
how can we help you?

Contact us at the CTS office nearest to you or submit a business inquiry online.

CTS really helped us achieve our financial goals. The slick presentation along with fantastic readability ensures that our financial standing is stable.

Ajay Kumar Singh
CMD, MANACLE ENGINEERING & INFRASTRUCTURE LIMITED

Looking for a First-Class Business Plan Consultant?