Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)

Implementing Agency:

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.

Project components:

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:

• 1^stinstallment after utilization of 50% of Promoter contribution and 50% of TL towards Eligible Project Cost
• 2^ndInstallment 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.