Union Cabinet on March 31 approved a Rs 10,900 crore Production Linked Incentive Scheme for Food Processing Industry.
The scheme is expected to generate processed food output of Rs. 33,494 crore and create employment for nearly 2.5 lakh persons in six years ending 2026-27.
- Brief of the Scheme
- Scheme will be implemented over a six year period from 2021-22 to 2026-27.
- incentive payable for a particular year will be due for payment in the following year.
- The maximum incentive payable to each beneficiary shall be fixed in advance at the time of approval of that beneficiary and this maximum shall not be exceeded.
- 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. Investment made in 2020-21 also to be counted for meeting the mandated investment.
- The Products eligible for the scheme are
- The first component relates to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat foods including Millets based products, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese. This covers egg, Poultry Meat, Egg Products
- The second component relates to support for branding and marketing abroad to incentivise emergence of strong Indian brands by providing grants.
- The incentive structure and eligibility criteria is under preparation and will be finalised after consultation with the industry.