The Union Cabinet chaired by Prime Minister Narendra Modi has approved the Central Sector Scheme - "Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)" with an outlay of Rs10,900cr. The scheme is approved to support the creation of global food manufacturing champions commensurate with India's natural resource endowment and support Indian brands of food products in the international markets.
Features of the scheme as per the PIB statement are:
1. The first component relates to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.
2. Innovative/ Organic products of SMEs including Free Range -Eggs, Poultry Meat, Egg Products in these segments are also covered under the above component.
3. 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.
4. The investment made in 2020-21 also to be counted for meeting the mandated investment.
5. The conditions of stipulated Minimum Sales and mandated investment will not be applicable for entities selected for making innovative/ organic products.
6. The second component relates to support for branding and marketing abroad to incentivise the emergence of strong Indian brands.
7. For the promotion of the Indian Brand abroad, the scheme envisages grant to the applicant entities for - store Branding, shelf space renting and marketing.
8. The scheme will be implemented over a six-year period from 2021-22 to 2026-27.
The Cabinet said that the implementation of the scheme would facilitate the expansion of processing capacity to generate processed food output of Rs33,494cr. Also, the scheme will create employment for nearly 2.5 lakh persons by the year 2026-27.
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