PLI Scheme for Food Processing Industry

Union Cabinet has approved the PLI (Production Linked Incentive) Scheme for Food Processing Industry.

About PLI scheme for Food Processing Industry

The scheme will be implemented over a 6-year period from 2021-22 to 2026-27.
The scheme aims to support the creation of global food manufacturing champions according to the natural resources of India.

Objectives of the Scheme

PLI scheme will support food manufacturing organizations with stipulated minimum sales.
It will also support Indian brands of food products in the international markets with an outlay of Rs. 10900 crore.
It will increase employment opportunities and ensure good prices for farm produce and higher income for farmers.

Salient features of the PLI scheme for the Food Processing Industry

The first component of the scheme
- It will incentivize the manufacturing of 4 major food product segments:
  - Marine Products,
  - Mozzarella Cheese
  - Processed Fruits & Vegetables
  - Ready to Cook/ Ready to Eat (RTC/ RTE) foods
- Applicants will require investing in Plant & Machinery in the first two years.
- The entities selected for making innovative/ organic products will be exempt from the Minimum Sales and mandated investment requirements.
2nd component of the scheme
- Under this component, support will be provided for branding and marketing abroad.
- The entity will receive grants for in-store Branding, shelf space renting, and marketing.

Implementation of the scheme

Project Management Agency (PMA) will implement the scheme.
PMA will be responsible for verification of eligibility for support, and scrutiny of claims eligible for disbursement of incentive.
The scheme is “fund-limited”, i.e. the amount restricts to the approved limit. This amount will not exceed even in case of outstanding performance.

Source: TH

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