The union cupboard right now permitted ₹10,900 crores as incentive/subsidy underneath PLI scheme for the food processing industry.
Commenting on the announcement Union Minister Prakash Javadekar stated,”Today PLI (Product-Linked incentive) introduced for food processing industry. Decision taken to make sure remunerative costs to extend & construct India model in food processing, rising employment potential & making it world and manufacturing champion.”
Objectives of the Scheme:
- The aims of the scheme are to help food manufacturing entities with stipulated minimal gross sales and keen to make minimal stipulated funding for growth of processing capability and branding overseas to incentivise emergence of sturdy Indian manufacturers.:
- Support creation of world food manufacturing champions.
- Strengthen choose Indian model of food merchandise for world visibility and wider acceptance within the worldwide markets.
- Increase employment alternatives of off-farm jobs,
- Ensuring remunerative costs of farm produce and better earnings to farmers.
- The first part pertains to incentivising manufacturing of 4 main food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) meals, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.
- Innovative/ Organic merchandise of SMEs together with Free Range -Eggs, Poultry Meat, Egg Products in these segments are additionally coated underneath above part.
- The chosen applicant will probably be required to undertake funding, as quoted of their Application (Subject to the prescribed minimal) in Plant & Machinery within the first two years i.e. in 2021-22 & 2022-23.
- Investment made in 2020-21 additionally to be counted for assembly the mandated funding.
- The circumstances of stipulated Minimum Sales and mandated funding won’t be relevant for entities chosen for making modern/ natural merchandise.
- The second part pertains to help for branding and advertising overseas to incentivise emergence of sturdy Indian manufacturers.
- For promotion of Indian Brand overseas, the scheme envisages grant to the applicant entities for – in retailer Branding, shelf house renting and advertising.
- Scheme will probably be carried out over a six 12 months interval from 2021-22 to 2026-27.
- Impact together with employment technology potential:
- The implementation of the scheme would facilitate growth of processing capability to generate processed food output of ₹33,494 crore and;
- Create employment for practically 2.5 lakh individuals by the 12 months 2026-27