PRODUCTION LINKED INCENTIVE (PLI) SCHEME FOR FOOD PROCESSING INDUSTRIES:

INTRODUCTION:

The government of India has approved a new Central Sector scheme – “Production Linked Incentive Scheme for food Processing Industries” to support the creation of global food manufacturing commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets with an outlay of RS.10,900 Crore.

• The food processing sector in India encompasses manufacturing enterprises in all the segments from micro to large industries.
• India is having a competitive advantage in terms of resource endowment, large domestic market, and scope for promoting value-added products.
• Achieving full potential of this sector would require Indian companies to improve their competitive strength vis-à-vis their global counterpart in term of scale of output, productivity, value addition and their linkages with the global value chain.
• The Production Linked Incentive Scheme for Food Processing Industry has been formulated based on the Production Linked incentive scheme of NITI Aayog under “AatmaNirbhar Bharat Abhiyaan for Enhancing India’s Manufacturing Capabilities and Enhancing Exports”

OBJECTIVE OF THE SCHEME:

• Support Food manufacturing entities with stipulated minimum Sales and willing to make a minimum stipulated investment for expansion of processing capacity and Branding abroad to incentivize the emergence of strong Indian brands.
• Support creation of global food manufacturing champions.
• Strengthen select Indian brands of food products for global visibility and wider acceptance in the international markets.
• Increase employment opportunities for off-farm jobs.
• Ensuring remunerative prices of farm produce and higher income to farmers.

CATEGORIES:

Ministry of food processing industries invites applications for availing sales-based incentives and grants for undertaking Branding & Marketing activities abroad under the scheme from three categories of Applicants:

CATEGORY-A: Applicants are large entities who apply for Incentives based on Sales & Investment Criteria. Applicant under this category could undertake Branding & Marketing activities abroad also and apply for grant under the scheme with a Common Application.

 CATEGORY-B: SMEs Applicants manufacturing innovative/organic products who apply for PLI incentive based on sales.

 CATEGORY-C:  Applicants applying solely for grants for undertaking Branding & Marketing activities abroad.

APPLICATION PROCESS:

• The interested entities should submit their proposals online as per the “Production Linked Incentives Scheme for Food Processing Industry” Scheme Guidelines dated 02/05/2021.
• THE detailed guidelines of the scheme may be seen at “www.mofpi.nic.in”.
• The proposals/ Eols, will only be received through the online portal: https://plimofpi.ifciltd.com Last date for submission of the application is 06.2021 upto 5:00 PM.
• The Applicant shall make a non-refundable Application fee for each Application. Such fee is Rs 1,00,000 (Rupees One Lakh) for Category-I Applicants and Rs 10,000 (Rupees ten thousand) for Category-II Applicants. Under Category-III, Rs 10,000 (Rupees ten thousand) and Rs 50,000 (Rupees fifty thousand) would be payable by SMEs and other Applicants respectively.
• The fee may be paid electronically through NEFT / RTGS to Account Number: 3000061891, IFSC Code: CBIN0282169, Central Bank of India, Udyog Bhawan, New Delhi or Demand Draft (DD) in favor of “The Pay & Accounts Officer, Ministry of Food Processing Industries” payable at New Delhi.
• Electronic transfer details or the scanned copy of Demand Draft shall be submitted with the online proposal and the original Demand Draft (DD) should be submitted to the Ministry within 7 days of submission of the online proposal failing which the proposal will not be considered.

IMPLEMENTATION STRATEGY AND TARGETS:

• The scheme shall be implemented through a Project Management Agency (PMA).
• The PMA would, inter-alia, be responsible for the appraisal of applications/ proposals, verification of eligibility for support, scrutiny of claims eligible for disbursement of incentive
• The incentive under the scheme would be paid for six years ending 2026-27. The incentive payable for a particular year will be due for payment in the following year. The duration of the scheme will be six years i.e. 2021-22 to 2026-27.
• The scheme is “fund-limited”, i.e. cost shall be restricted to the approved amount. The maximum incentive payable to each beneficiary shall be fixed in advance at the time of approval of that beneficiary. Regardless of achievement/ performance, this maximum shall not be exceeded.
• The implementation of the scheme would facilitate the expansion of processing capacity to generate processed food output of Rs 33,494 crore and create employment for nearly 2.5 lakh persons by the year 2026-27.

SILENT FEATURE:

For further details find below link: https://mofpi.nic.in/sites/default/files/guidelines_plisfpiwithcoveringltr_0.pdf

• The first component relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods including Millets-based products, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.
• Innovative/ Organic products of SMEs including Free Range – Eggs, Poultry Meat, Egg Products in these segments are also covered under the above component.
• The selected applicant will be required to undertake investment, as quoted in their Application (Subject to the prescribed minimum) in Plant & Machinery in the first two years i.e. in 2021-22 & 2022-23.
• The investment made in 2020-21 also to be counted for meeting the mandated investment.
• The conditions of stipulated Minimum Sales and mandated investment will not be applicable for entities selected for making innovative/ organic products.
• The second component relates to support for branding and marketing abroad to incentivize the emergence of strong Indian brands.
• For the promotion of Indian Brand abroad, the scheme envisages grant to the applicant entities for – in-store Branding, shelf space renting, and marketing.
• The scheme will be implemented over a six-year period from 2021-22 to 2026-27.

MAJOR IMPACT, INCLUDING EMPLOYMENT GENERATION POTENTIAL:

• The implementation of the scheme would facilitate the expansion of processing capacity to generate processed food output of Rs 33,494 crore and;
• Create employment for nearly 2.5 lakh persons by the year 2026-27.

For Queries, please post on rajnikant@rmpsco.com

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