(THE GIST OF PIB) Cabinet approves Production Linked Incentive Scheme for Food Processing Industry
Cabinet approves Production Linked Incentive Scheme for Food Processing Industry
- The Union Cabinet chaired by the Prime Minister has approved the Central Sector Scheme – “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI).
Objectives of the Scheme:
- Support creation of global food manufacturing champions;
- Strengthen select Indian brand of food products for global visibility and wider acceptance in the international markets;
- • Increase employment opportunities of off-farm jobs,
- Ensuring remunerative prices of farm produce and higher income to farmers.
- The first component relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits and Vegetables, Marine Products, Mozzarella Cheese.
- Innovative/ Organic products of SMEs including Free Range -Eggs, Poultry Meat, Egg Products in these segments are also covered under above component.
- 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.
- Investment made in 2020-21 also to be counted for meeting the mandated investment.
- The conditions of stipulated Minimum Sales and mandated investment will not be applicable for entities selected for making innovative/ organic products.
- The second component relates to support for branding and marketing abroad to incentivize the emergence of strong Indian brands.
- For the promotion of Indian Brand abroad, the scheme envisages grant to the applicant entities for – in-store Branding, shelf space renting and marketing.
- Scheme will be implemented over a six-year period from 2021-22 to 2026-27.
Impact including employment generation potential:
- The implementation of the scheme would facilitate the expansion of processing capacity to generate processed food output of Rs 33,494 crore and;
- Create employment for nearly 2.5 lakh persons by the year 2026-27.