The incentive below the scheme could be paid for six years ending 2026-27.
The authorities on Wednesday authorized a production-linked incentive (PLI) scheme for the meals processing sector, entailing an outlay of Rs 10,900 crore. The Union Cabinet, chaired by Prime Minister Narendra Modi, authorized the scheme which can assist create 2.5 lakh jobs by 2026-27, increase exports and facilitate growth of meals processing capability to generate processed meals output price Rs 33,494 crore. The incentive below the scheme could be paid for six years ending 2026-27. “The PLI for the food processing sector with Rs 10,900 crore-incentive has been approved. The decision is a fitting tribute to our farmers,” Food Minister Piyush Goyal stated whereas briefing the media concerning the cupboard choices.
The effort is to take the nation’s meals processing to a subsequent degree amid the rising world demand for Indian ready-to-eat meals, natural merchandise, processed vegatables and fruits, marine merchandise and mozzarella cheese, he stated. The authorities stated the goals of the scheme are to help meals manufacturing entities with stipulated minimal gross sales and which might be prepared to make minimal stipulated funding for growth of processing capability and branding overseas to incentivise emergence of sturdy Indian manufacturers.
Information and Broadcasting Minister Prakash Javadekar, who was additionally current on the briefing, stated that the federal government within the Budget had introduced a PLI scheme for 12-13 sectors. Already, PLI has been introduced for six sectors. “Today, PLI for the food processing industries has been approved,” he added. According to the federal government, the primary element below the scheme pertains to incentivising manufacturing of 4 main meals product segments: ready-to-cook/ready-to-eat meals, processed vegatables and fruits, marine merchandise and mozzarella cheese.
Innovative and natural merchandise of small-to-medium enterprise (SMEs), together with eggs, poultry meat, egg merchandise in these segments, are additionally coated below the primary element. The second element pertains to help for branding and advertising overseas to incentivise emergence of sturdy Indian manufacturers.
Highlighting key options of the scheme, Food Processing Industries Secretary Pushpa Subrahmanyam stated, “The government will issue an expression of interest (EoI) by the end of April.”
The requirement for the respondents is to decide to a minimal gross sales and minimal degree of funding to every phase and in the event that they obtain each, then for the incremental gross sales, a share of that quantity will probably be given as subsidy the next 12 months, she stated. The chosen applicant will probably be required to undertake funding in plant and equipment within the first two years i.e. in 2021-22 and 2022-23. Investment made in 2020-21 fiscal additionally to be counted for assembly the mandated funding, the federal government stated in a separate assertion. The circumstances of stipulated minimal gross sales and mandated funding is not going to be relevant for entities chosen for making revolutionary/natural merchandise, it stated.
The scheme goals to help creation of world meals manufacturing champions, strengthen choose Indian model of meals merchandise for world visibility and wider acceptance within the worldwide markets apart from rising employment alternatives of off-farm jobs in addition to making certain remunerative costs of farm produce and better revenue to farmers.
On implementation of the scheme, the federal government stated will probably be rolled out throughout the nation and will probably be applied by way of a mission administration company (PMA). The scheme is “fund-limited” as the fee will probably be restricted to the authorized quantity. The most incentive payable to every beneficiary shall be fastened prematurely on the time of approval of that beneficiary. The scheme could be monitored on the Centre by the Empowered Group of Secretaries, the assertion added.Â
