
	Home About Us Team Industrial Subsidies Query Careers Admin Login Email Login Time Sheet Contact Us

PMFOE

MoFPI

Pradhan Mantri Kisan Sampada Yojana (PMKSY)

Financial Assistance provided by Ministry of Food Processing Industries, Government of India under Pradhan Mantri Kisan SAMPADA Yojana

The government of India has approved the continuation of the Central Sector Scheme - Pradhan Mantri Kisan SAMPADA Yojana with an allocation of Rs. 4,600 crore for the period 2021-22 to 2025-26 coterminous with the 15th Finance Commission cycle. The scheme will be implemented by the Ministry of Food Processing Industries (MoFPI).

PMKSY is expected to leverage investment of Rs.11,095.93 crore, benefiting approximately 28,49,945 farmers and generate 5,44,432 direct/ indirect employment in the country by the financial year 2025-2026.

The PMKSY had seven component schemes viz;

Mega Food Park

The main objective of the scheme is to develop modern infrastructure facilities for the food processing and modernize the value chain from the farm to the market. The scheme supports creation of processing infrastructure near the farm, transportation, logistics and centralized processing centers.

The scheme aims to increase enhanced realization for farmers, creation of high quality processing infrastructure, reduction in wastage, capacity building of producers, processors and creation of an efficient supply chain along with significant direct and indirect employment generation in rural areas.

Pattern of Assistance:

Capital grant upto 50% of the “Eligible” project cost in general areas
Capital grant upto 75% of the “Eligible” project cost in difficult and hilly areas
Maximum grant upto Rs. 50 Crore per project

Components under Project cost:

Core Processing Facilities:

Central Processing Facilities: Common facilities like testing laboratory, cleaning, grading, sorting and packing facilities, dry warehouses, specialized storage facilities, cold storage including Controlled Atmosphere Chambers, Pressure Ventilators, variable humidity stores, pre-cooling chambers, ripening chambers etc., cold chain infrastructure including reefer vans, packaging unit, irradiation facilities, steam sterilization units, steam generating units, Food incubation cum development centers etc.,
Primary Processing Centers and Farm Proximate Collection Centers: These shall have components like cleaning, grading, sorting and packing facilities (including equipment), dry warehouses, specialized cold stores including pre-cooling chambers, ripening chambers (including equipment), reefer vans, mobile pre-coolers, mobile collection vans etc.,

Factory Buildings
Enabling Basic Infrastructure : development of industrial plots, boundary wall, roads, drainage, water supply, electricity supply including captive power plant, effluent treatment plant, telecommunication lines, parking bay including traffic management system, weighbridges etc.
Non-Core Infrastructure : Administrative buildings, training center including equipment, trade and display center, creche, canteen, worker's hostel, offices of service providers, labour rest and recreation facilities, marketing support system, etc.,
Project Implementation Expenses : Includes cost of hiring the services of domain consultants by the SPV's for preparation of DPRs, supply chain management, engineering/designing and construction supervision etc.,
Land

Time Schedule and release of payments

Time schedule for completion and operationalization of project will be 30 months as detailed below from the date of issue of final approval.

Sl. No.	Particulars	Time Period
1	Final Approval to release of 1st installment	6 months
2	1st installment to release of 2nd installment	8 months
3	2nd installment to release of 3rd installment	8 months
4	3rd installment to release of 4th and final installment	8 months
	Total	30 months

Our Services in this area:

Preparation of Detailed Project Reports (DPR)
Layout Drawings
Facilitating various permissions required from various Govt. Departments
Error free application processing for various subsidies and incentives
Facilitating the arrangement of subsidies and incentives from Govt. Departments

Integrated Cold Chain

The scheme was introduced to enhance the infrastructure for Cold Chain Logistics, Preservation and value addition facilities so that there will not be any break from the farm gate to the consumer in order to reduce post-harvest losses of horticulture and non-horticulture agri-produce. This will enable linking groups of producers to processors and market through a well-equipped supply chain and cold chain, thereby ensuring remunerative prices to farmers and year-round availability of food products to consumers.

Pattern of Assistance:

Maximum grant amount - Rs. 10 Crore
For storage infrastructure including Pack House and Pre cooling unit, ripening chamber and transport infrastructure at the rate of 35% of eligible project cost for General Areas and at the rate of 50% for North East States, Himalayan States, ITDP Areas & Islands.
For value addition and processing infrastructure including frozen storage/ deep freezers associated and integral to the processing at the rate of 50% of eligible project cost for General Areas and at the rate of 75% for North East States, Himalayan States, ITDP Areas & Islands.
For irradiation facilities at the rate of 50% of eligible project cost for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands.

Eligible Facilities for grant:

Integrated Pack-house (with mechanized sorting & grading line/ packing line/ waxing line/ staging cold rooms, etc.)
Ripening Chamber(s)
Cold Storage Unit(s)
Controlled Atmosphere (CA) storage
Frozen Storage/Deep freezers
IQF line, Tunnel Freezer, Spiral Freezer, Blast Freezer, Plate Freezer
Vacuum Freeze Drying
Milk Chilling / Bulk Milk Cooling/ Automatic Milk Collection Unit/ Milk Processing Unit (including packing) for which temperature control is necessary during some part of the processing. (Maximum 50 nos. of Milk Chilling or Bulk Milk Cooling or Automatic Milk Collection Unit to be assisted per project)
Poultry/Meat/Marine/Fishery Processing Unit
Packaging line for chilled /frozen/temperature controlled products
Food Irradiation unit
Refrigerated/ Insulated transport
Pre Cooling Unit(s)
Mobile pre-coolers
Retail refrigerated carts, temperature controlled solar powered retail carts (maximum 10 numbers to be assisted per project)
Reefer boats (maximum 10 numbers to be assisted per project)
Refrigerated Containers including multi-modal container units
Renewable/ alternate energy technologies (solar, bio-mass, wind etc.) for the project.
Accessories/support infrastructure/ utilities such as fixed racking system in Cold/CA storage, fork lifts, reach trucks, bins, insulated fish boxes, pallets, dock levellers, mezzanine flooring, ETP, boiler, CIP unit, Depodder, Peeler, Slicer/Dicer, Blancher, sorting/grading line, etc.
In-house product testing laboratory
Any other modern technology for temperature controlled storage, processing, value addition and preservation infrastructure as may be decided by Inter Ministerial Approval Committee (IMAC)

Ineligible Items for Grant:

Compound Wall
Approach Road/Internal Roads
Cost of Land and site development
Administrative Office Building
Canteen
Labour Rest Room and quarters for workers
Security/ Guard Room or enclosure
Consultancy fee, taxes, etc.
Other Non-technical civil works not related to cold chain or storage infrastructure
Margin money, working capital and contingencies
Fuel, consumables, spares and stores
Transport vehicles other than the reefer trucks/vans/refrigerated carrier/insulated vans/milk tankers
Pre-operative expenses
Second hand/ old machines
All types of service charges, carriage and freight charges, etc.
Expenditure on painting of machinery
AC ducting, furniture, computers and allied office items.
Closed Circuit TV Camera and security system related equipment.
Consultancy Fee, Taxes, etc. on plant and machinery.
Stationery items
Plant & machinery not directly related to cold chain infrastructure
Fire-fighting equipment, fly catchers, hand washer, laundry etc.
Reconditioned and refurbished plant & machinery.

Time Schedule and release of payments

Time schedule for completion and operationalization of project will be 20 months for projects in General Areas and 24 months in North East States, Himalayan States, ITDP Areas and Islands from the date of issue of the approval letter for the financial assistance.

Sl. No.	Particulars	Amount	Time Period
1	1st Installment	25%	8 months
2	2nd Installment	40%	6 months
3	3rd Installment	35%	6 months
		Total	20 months

Our Services inthis area:

Preparation of Detailed Project Reports (DPR)
Layout Drawings
Facilitating various permissions required from various Govt. Departments
Error free application processing for various subsidies and incentives
Facilitating the arrangement of subsidies and incentives from Govt. Departments
Advisory on Purchase of Machinery / Technology and Civil works

Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC)

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.

Release of Grant - Grant is released in two 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.

Eligible Sectors under this Scheme: The scheme offers assistance for the following 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*

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.

Processing Activities Eligible under the scheme:

Sorting, grading, washing, peeling, cutting, sizing
Blanching, crushing, extraction, pulping
Drying, de-husking, de-hulling, splitting, depoding, deseeding, colour sorting, pulverization, extrusion, freeze drying / dehydration, frying, etc.
Pasteurization, homogenization, evaporation, concentration, etc.
Packaging facilities like canning, aseptic packaging, vacuum packaging, bottling, edible packaging, labeling, any other specialized packaging etc.
Chemical preservation, pickling, fermentation or any other specialized facility required for preservation activities etc.
Individual Quick Freezing (IQF), blast freezing, plate freezing, spiral quick freezing etc.
Controlled temperature transport like coolers / refrigerated / insulated / ventilated transport.
All other processing / preservation/ transport / storage facilities etc. adjunct to value addition and shelf life enhancement of food products would be eligible.

Important to remember The Ministry will have the authority to 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 instalment 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.

Important updates in the Revised Guidelines

MoFPI CEFPPC scheme has revised the guidelines and has made some major updates in favour of Food Processing units.

CEFPPC scheme is now accepting applications from units outside of Mega Food Parks and Agro Processing clusters, which was not allowed before.
Percentage stake of SC/ST entrepreneurs has been reduced from 100% to 51% to be considered as a SC/ST enterprise
SC/ST enterprise needs to achieve 45 marks in the evaluation criteria reduced from 60 marks
Evaluation criteria has been relaxed to a great extent in the new guidelines

Our Unique Services

Preparation of Detailed Project Reports (DPR)
Layout Drawings
Facilitating various permissions required from various Govt. Departments
Error free application processing for various subsidies and incentives
Facilitating the arrangement of subsidies and incentives from Govt. Departments
Advisory on Purchase of Machinery / Technology and Civil works

Agro Processing Cluster

The Agro Processing Cluster scheme is introduced by Ministry of Food Processing Industries (MoFPI). The scheme aims for development of modern infrastructure and to encourage entrepreneurs to set up food processing units based on cluster approach. So that these clusters will help in reducing the wastage of the surplus produce and add value to the horticultural / agricultural produce. Which inturn will result in increase of income of the farmers and create employment at the local level.

Few capital intensive infrastructure like machinery sorting, grading, cleaning etc are commonly used by almost all Food Processing Industries. There are also few basic enabling infrastructure like water supply, power supply, effluent treatment, roads etc., which cannot be avoided. Developing these common and basic facilities requires a lot of investment. The Agro Processing Cluster Scheme by MoFPI, encourages entrepreneurs to develop the common and basic infrastructure facilities so that it becomes more viable to setup Food Processing industries with the basic facilities already available.

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. 10 Crore per project.

Release of Grant

First installment of 35% of the total approved grant is released to the PEA after incurring an expenditure of 35% of the bank term loan and 35% promoters contribution/ equity
Second installment of 40% of the total approved grant is released after incurring an expenditure of 75% of the bank term loan and 75% of promoters’ contribution / equity
Third installment of 15% of the total approved grant is released after incurring an expenditure of 90% of the bank term loan and 90% of promoters’ contribution / equity
Fourth & final installment of 10% of the approved amount is on completion of the project and submission of requisite documents.

Eligible components of the Scheme - The scheme will have following components:

1. Basic enabling infrastructure:

Development of industrial plots
Boundary wall
Roads
Drainage
Water supply
Electricity supply including power backup
Effluent treatment plant
Parking bay
Weigh bridges
Common office space etc.

2. Core infrastructure:

Food testing laboratory
Cleaning
Grading
Sorting
Packing facilities
Steam generation boilers
Dry warehouse
Cold storage
Pre-cooling chambers
Ripening chambers
IQF
Specialized packaging
Other common processing facilities

Timeline for completing the project

Sl. No.	Paticulars	Time period
	General Areas
1	Date of approval to release of 1st installment	6 Months
2	1 st installment to release of 2nd installment	4 Months
3	2 nd installment to release of 3rd installment	4 Months
4	3 rd installment to release of 4th installment	6 Months
	Difficult Areas
1	Date of approval to release of 1st installment	6 Months
2	1 st installment to release of 2nd installment	6 Months
3	2 nd installment to release of 3rd installment	6 Months
4	3 rd installment to release of 4th installment	6 Months

Important to remember

The project proposals need to achieve the cut-off score of 60 marks for being eligible for assessment under the scheme.
In case of non-adherence of time lines, a penalty of 1% of the quantum of installment amount due for release for that installment, will be imposed for each month’s delay.
The Ministry will periodically review the progress of the projects under the Scheme.
Pre and post inspection would also be undertaken by the Ministry officials, PMA and State Govt. to find out the physical, financial and operational progress as and when required

Our Services in this area:

Preparation of Detailed Project Reports (DPR)
Layout Drawings
Facilitating various permissions required from various Govt. Departments
Error free application processing for various subsidies and incentives
Facilitating the arrangement of subsidies and incentives from Govt. Departments

Advisory on Purchase of Machinery / Technology and Civil works

Creation of Backward & Forward Linkages

The supply chain logistics of India are not upto the global standards. In order to plug the gaps and improve the supply chain, MoFPI has introduced this scheme to develop the backward and forward integration for processed food industry in terms of availability of raw material and linkages with the market.

Sectors covered under this scheme: Following food processing sectors are eligible for benefits under the scheme

Horticulture
Milk & Milk Products
Meat, poultry, fishery, marine and piggery
Ready to eat / Ready to cook food products
Honey, coconut, spices and mushroom
Retails stores for perishable food products

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.

Release of Grant

The first installment of 25% of the approved grant is released after ensuring that 25% of the promoter’s contribution and 25% of the term loan is spent on the eligible project cost;
The second installment of 40% of grant is released after ensuring utilization of first installment of grant released, 65% of promoter’s contribution and 65% of term loan;
The third and final installment of remaining 35% of the approved grant under the scheme is released after ensuring utilization of the second installment, 100% of promoter’s contribution and 100% of term loan.

Eligible Components of the Scheme

1. Backward Linkage:

Integrated Pack-house(s) (with mechanized sorting & grading line/ packing line/ waxing line/ staging cold rooms/cold storage, etc.)
Milk Chilling Centre(s) /Bulk Milk Cooler(s)
Pre Cooling Unit(s)/ Chillers
Reefer boats
Machinery & equipment for minimal processing and/or value addition such as cutting, dicing, slicing, pickling, drying, pulping, canning, waxing, etc.
Machinery & equipment for packing/ packaging.

2. Forward Linkage:

Retail chain of outlets including facilities such as frozen storage/ deep freezers/ refrigerated display cabinets/cold room/ chillers/ packing/ packaging, etc.
Distribution center associated with the retail chain of outlets with facilities like cold room/ cold storage/ ripening chamber.

3. Transport:

Refrigerated/ Insulated transport / Reefer Vans in conjunction with backward and forward linkages.

Timeline for completing the project

Sl. No.	Paticulars	Time period
	General Areas
1	Date of approval to release of 1st installment	8 Months
2	1st installment to release of 2nd installment	6 Months
3	2nd installment to release of 3rd installment	4 Months
	Total	18 Months
	Difficult Areas
1	Date of approval to release of 1st installment	10 Months
2	1st installment to release of 2nd installment	6 Months
3	2nd installment to release of 3rd installment	4 Months
	Total	20 Months

Important to remember

In case of non-adherence of time lines, a penalty of 1% of the quantum of installment amount due for release for that installment, will be imposed for each month’s delay.
The grant will be recalled in the following cases

In case of non-implementation of the project as per the guidelines of the approval letter
If the assisted project stops its commercial operations within three (3) years from the date of commencement of commercial production of the project

The Ministry will periodically review the progress of the projects under the Scheme.
Pre and post inspection would also be undertaken by the Ministry officials, PMA and State Govt. to find out the physical, financial and operational progress as and when required

Our Services include:

Preparation of Detailed Project Reports (DPR)
Layout Drawings
Facilitating various permissions required from various Govt. Departments
Error free application processing for various subsidies and incentives
Facilitating the arrangement of subsidies and incentives from Govt. Departments
Advisory on Purchase of Machinery / Technology and Civil works

Food Testing Laboratories

This scheme provides financial assistance for setting up food testing laboratories in India. Testing of Food is very essential for consumer and public safety. Food testing and certification ensures that the Food Items comply with the domestic standards as well as international standards in case of exports. There is also a need for testing of all imported food products to ensure that they are of the requisite standard and food products not permitted for manufacture domestically are not allowed to come in from foreign markets. The level of contaminants, additives, and pesticide residues in food items is required to be monitored regularly. Therefore, a network of food testing and analysis laboratories is required to support the surveillance system of food regulator, timely analysis of samples and ensure compliance of international and domestic standards on food in case of exports as well as imports.

Pattern of Assistance:

1. For Central / State Govt. and its organizations / universities

For Central / State Govt. and its organizations / universities

Laboratory Equipment - 100% Grant-in-aid
Technical Civil Work - 25% of project cost for general areas
Technical Civil Work - 33% of project cost for Difficult Areas

For Private Organizations

Laboratory Equipment - 50% of project cost for General Areas
Laboratory Equipment - 70% of project cost for Difficult Areas
Technical Civil Work - 25% of project cost for general areas
Technical Civil Work - 33% of project cost for Difficult Areas

Release of Grant

First installment - 40%
Second installment - 40%
Third installment - 20%

Timeline for completing the project

Sl. No.	Paticulars	Time period
	General Areas
1	Date of approval to release of 1st installment	8 Months
2	1st installment to release of 2nd installment	6 Months
3	2nd installment to release of 3rd installment	4 Months
	Total	18 Months
	Difficult Areas
1	Date of approval to release of 1st installment	10 Months
2	1st installment to release of 2nd installment	8 Months
3	2nd installment to release of 3rd installment	6 Months
	To4 Months

Our Services include:

Preparation of Detailed Project Reports (DPR)
Layout Drawings
Facilitating various permissions required from various Govt. Departments
Error free application processing for various subsidies and incentives
Facilitating the arrangement of subsidies and incentives from Govt. Departments
Advisory on Purchase of Machinery / Technology and Civil works

Production Linked Incentive (PLI) Scheme for Food Processing Industry
What is Production Linked Incentive (PLI) Scheme
Govt. of India has introduced the scheme in April 2020 for large scale electronics manufacturers in India. By November, 2020 the scheme was extended to following Sectors

Sl. No.	Sector	Implementing Ministry / Dept	Allocated Budget(in Crores)
1	Advance Chemistry Cell (ACC) Battery	NITI Aayog and Department of Heavy Industries	18100
2	Electronic/Technology Products	Ministry of Electronics and Information Technology	5000
3	Automobiles & Auto Components	Department of Heavy Industries	57042
4	Pharmaceuticals drugs	Department of Pharmaceuticals	15000
5	Telecom & Networking Products	Department of Telecom	12195
6	Textile Products: MMF segment and technical textiles	Ministry of Textiles	10683
7	High-Efficiency Solar PV Modules	Ministry of New and Renewable Energy	4500
8	White Goods (ACs & LED)	Department for Promotion of Industry and Internal Trade	6283
9	Speciality Steel	Ministry of Steel	6322

The objective of the Production Linked Incentive (PLI) Scheme for Food Processing Industry is to support the creation of global food manufacturing champions; promote Indian brands of food products; increase employment opportunities for off-farm jobs, ensure remunerative prices of farm produce and higher income to farmers.

Components of the Scheme

Incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) including millet-based foods, Processed Fruits & Vegetables, Marine Products & Mozzarella Cheese.
Incentivizing Innovative/ Organic products of SMEs across all the above four food product segments including Free Range - Eggs, Poultry Meat & Egg Products.
Support for branding and marketing abroad

Food Product Segments eligible for the scheme

Ready to Cook/ Ready to Eat (RTC/ RTE) including millet-based foods
Processed Fruits & Vegetables
Marine Products
Mozzarella Cheese

Categories of companies and eligible components

Category 1: Large Enterprises Eligible for Component 1 and 3
Category 2: SMEs Eligible for component 2
Category 3: Any Enterprise. Eligible for component 3

Common Eligibility Criteria for Production Linked Incentive (PLI) Scheme

Applicants engaged in manufacturing of food products in India
Food products should be sold in consumer packs
Applicant can also include products which are not being manufactured at present but intends to start manufacturing within the project period
Entire processing should be completed in India (including primary processing of food grains)
Applicant shall specify the entire manufacturing process in the application starting from sourcing of raw materials

Conditions for disbursement of Incentive

Achieve minimum CAGR in Sales over the base year for individual product group
Complete the Committed Investment, year-wise, as proposed in the Application
Applicant entities selected for multiple product segments would be required to meet minimum growth in Sales and investment segment-wise
10% of the Incentive due for Y1 and Y2 will be deducted- if the applicant fails to complete the investment as Committed. If at the end of Y2, the Committed Investment is completed, then the amount deducted for Y1 would be paid to the company. By the end of Y3, if the Committed Investment is not completed, the selected Applicant will be taken out from PLIS
The assessment of incremental Sales shall be based on statutory filings with Government Departments/ Agencies and audit reports and other documents
Incentives under the scheme for a particular year will be disbursed in the following year