Agro Processing Cluster

Conditions:

  • The net worth of the PEA should not be less than 1.5 times the grant amount.
  • The PEA should provide 20% of the total project cost as equity in general areas, and for the North East States, 10% of the total project cost to be provided.
  • PEA should obtain term loan from the Bank or Financial Institution for an amount of less than 20% of the project cost.
  • Any applicant who has availed financial assistance for a project under this scheme will not be eligible to apply for another project under the same scheme until one year after commencement of the earlier project.
  • The Agro-processing cluster will be sanctioned in the same district where the Central Processing Centre (CPC) of Mega Food Park (MFP) is situated

Pattern of Assistance:

Components Pattern of assistance
% OF Grant Maximum limit
General Areas 35% of Eligible project cost Rs. 10 crores per project
Difficult & Hilly Areas 50% of eligible project cost Rs. 10 crores 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 & final installment of 25% of the approved is on completion of the project and submission of requisite documents.

 

S.No Particulars Time Period
General Areas
1 Date of approval to release of 1st installment 6 months
2 1st installment to release of 2nd installment 4 months
3 2nd installment to release of 3rd installment 4 months
4 3rd installment to release of 4th installment 6 months
Difficult Areas
1 Date of approval to release of 1st installment 6 months
2 1st installment to release of 2nd installment 6 months
3 2nd installment to release of 3rd installment 6 months
4 3rd installment to release of 4th installment 6 months