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  • 02 April, 2021

  • 4 Min Read

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 to farmers.

Salient features of the PLI scheme for Food Processing Industry

  • 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, 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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