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Ministry of Food Processing Industries issues guidelines for PLI Scheme

Tuesday, 04 May 2021
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The Ministry of Food Processing Industries (MoFPI) has issued detailed operational scheme guidelines and launched an online portal for Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
 
Union Minister for Food Processing Industries Narendra Singh Tomar launched the online portal for beneficiaries. 
 
As part of Prime Minister Narendra Modi’s announcement of Aatmanirbhar Bharat Abhiyan, the government of India has approved a new Central Sector Scheme, namely Production Linked Incentive (PLI) Scheme, for the food processing industry for implementation during 2021-22 to 2026-27 with an outlay of Rs 10,900 crore to support creation of global food manufacturing commensurate with India's natural resource endowment and support Indian brands of food products in international markets. 
 
The Ministry of Food Processing Industries is inviting applications for availing sales-based incentives and grants for undertaking branding and marketing activities abroad under the Scheme from three categories of applicants.
 
Under Category-I, applicants are large entities who apply for incentivebased on sales and investment criteria. The applicant under this category can undertake branding and marketing activities abroad also and apply for grant under the Scheme with a common application.  
 
Under Category-II, SMEs applicants are manufacturing innovative/organic products who apply for PLI incentive based on sales. Under Category-III,the applicants are applying solely for grant for undertaking branding and marketing activities abroad.
 
The applicant for the Scheme shall be (i) Proprietary firm or partnership firm or limited liability partnership (LLP) or a company registered in India (ii) Co-operatives; and (iii) SME and making an application for seeking approval for coverage under the Scheme. 
 
The applicant may also include company applying on its own behalf and its subsidiary/subsidiaries provided the applicant company holds more than 50 percent of the stock of its subsidiary/subsidiaries and that none of such subsidiary company/subsidiaries is included in any other applicant company under the scheme; or marketing federation or apex level co-operatives applying on behalf of member unions or member co-operatives in the case of co-operatives. 
 
The sales-based incentive under the Scheme will be paid for six years from 2021-22 to 2026-27 on incremental sales over the base year. The base year for calculation of incremental sales would be 2019-20 for the first four years and for fifth and sixth years, the base year will be 2021-22 & 2022-23 respectively.
 
Sales will include sales of eligible food products manufactured by the applicants as well its subsidiaries and contract manufactures. Moreover, the applicants will be extended grant at the rate of 50 percent of expenditure on branding and marketing abroad, subject to a maximum grant of three percent of sales of food products or Rs 50 crore per year, whichever is less. The minimum expenditure for branding abroad will be Rs five crore over a period of five years. 
 
The selection of the applicants under Category-I will be based on their sales, exports, committed investment.
 
Four product segments are proposed to be incentivised under the Scheme -- ready to cook/ready to eat (RTC/ RTE) including millet-based foods, processed fruits & vegetables, marine products and mozzarella cheese. The food products included for coverage and those excluded under various segments have been listed in the guidelines.
 
The selected applicant must fulfill the minimum required sales growth rate criterion to become eligible for incentive.
 
The selection of SME applicants under Category-II and for innovative/organic products will be based on their proposal, uniqueness of the product and the level of product development, etc. The selection of the applicant under Category-III for branding and marketing abroad would be based on the level of recognition of their brand, strategy and plan for production, sales, exports and branding of products in domestic and export markets.
 
The proposals/EoIs will be received only through online portal and the last date for submission of application is 17 June 2021.
 
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