The key purpose of this policy is the formation of processing and preservation capacity and the modernisation/expansion of established food processing units with a commitment towards enhancing the amount of processing, with added value contributing to a reduction in waste. The processing functions conducted by the individual units involve a broad variety of post-harvest processes resulting in added value and/or enhanced shelf life with advanced facilities needed for the preserving of perishable items.

Although the expansion of processing capabilities is important to raise the level of processing and minimize waste, the induction of modern technology is anticipated to present a definitive difference both in terms of process efficiency and in terms of managing the quality of the final product. The establishment of new items and the modernisation/expansion of existing units are protected by the system.

The scheme is introduced by entities like Central & State PSUs/Joint Ventures/Farmers Organizations (FPOs)/NGOs/Cooperatives/SHGs/Pvt. Ltd firms/individuals businesses engaged in the formation, upgrading, and modernization of food processing units.

Project components

The qualifying project elements for the grant shall involve the costs of plant & machinery and technical civil works. The price of ‘Utilities’ important to the plant, i.e. pipeline, boiler, solid waste treatment plant, ETP, etc. is often deemed to be a minimum of 25 per cent of the overall project cost within qualifying project costs subjected to a limitation from the above cost.

Pattern of Assistance

The policy provides for grants in aid of 35% of qualified project costs in main areas and 50% of qualified project costs in the North East States, particularly Sikkim and complicated regions, such as the Himalayan states, the state-declared ITDP areas subject to a maximum of Rs. 5 crores per project.

Release of Grant

Grant is issued in 2 instalments each of 50% of the grant mostly in the corresponding way:

First Instalment

50% of the term loan along with 50% of the promoter’s contribution and the development of the necessary documents.

Second Instalment

50% of the term loan along with 50% of the promoter’s contribution and the development of the necessary documents.

For more details visit – Subsidy Consultant