Union Cabinet approves Rs 10,900 crore as subsidy under PLI Scheme
New Delhi, Mar 31: The Union Cabinet met today and approved 10,900 crore as incentive/subsidy under PLI scheme for the food processing industry.
The Cabinet also approved the first component related to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.
Highlights of the Cabinet decision:
Innovative/ Organic products of SMEs including Free Range -Eggs, Poultry Meat, Egg Products in these segments are also covered under 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.
Decision taken to ensure remunerative prices to increase & build India brand in food processing, increasing employment potential & making it global & manufacturing champion.
Under Pradhan Mantri Kisan Sampada Yojana (PMKSY) implemented by MoFPI, small and medium food processing enterprises are supported in terms of strengthening of supply chain infrastructure, expansion of processing capacities, augmenting availability of industrial plots, facilitating skill development, R&D, provision of testing facilities etc.
The Applicants covered under the proposed scheme will be permitted for availing services, wherever feasible, under other schemes. Towards that end, it has been envisaged that coverage under the PLI Scheme will not affect eligibility under any other scheme and vice versa
The objectives of the Scheme are to support food manufacturing entities with stipulated minimum Sales and willing to make minimum stipulated investment for expansion of processing capacity and Branding abroad to incentivise emergence of strong Indian brands.
The implementation of the scheme would facilitate 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.
The Production Linked Incentive Scheme for Food Processing Industry has been formulated based on the Production Linked incentive scheme of NITl Aayog under "AatmaNirbhar Bharat Abhiyaan for Enhancing India's Manufacturing Capabilities and Enhancing Exports.