Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
Scheme will be implemented through organizations such as central & state PSUs/ Joint Ventures/ Farmer Producers Organization (FPOs)/ NGOs/ Cooperatives/ SHGs/ Pvt Ltd Companies/ Individuals Proprietorships firms engaged in establishment/ up gradation/ modernization of food processing units.
Eligible project components for grant include the cost of plant & Machinery and Technical civil work. Cost of ‘Utilities’ essential for the plant i.e. Water pipeline, DG set, Boiler, Solid waste treatment plant, ETP etc. are also considered under eligible project cost subject to restriction of above cost being maximum 25% of the total project cost.
Pattern of Assistance:
|Components||Pattern of assistance|
|% OF Grant||Maximum limit|
|General Areas||35% of Eligible Project cost||Rs.5 crores per project|
|Difficult & Hilly Areas||50% of Eligible Project cost||Rs.5 crores per project|
Release of Grant:
- 1stinstallment after utilization of 50% of Promoter contribution and 50% of TL towards Eligible Project Cost
- 2ndInstallment after utilization of 100% of Promoter contribution and 100% of TL towards Eligible Project Cost
Recall of Grant:
The Ministry will have the authority to recall the grant – If the project is not completed in time within the approved project period including extension if any, then the grant-in-aid released to the applicant, will have to be refunded to the Ministry of Food Processing Industries forthwith but not later than 30 days after a notice is given by MOFPI in this regard.