MoFPI issues operational scheme guidelines for FPI

The Ministry of Food Processing Industries (MoFPI) has issued detailed operational scheme guidelines and has launched an online portal for 'Production Linked Incentive Scheme for Food Processing Industry' (PLISFPI). The detailed guidelines of the scheme are available at Ministry's website www.mofpi.nic.in. Union Minister for Food Processing Industries Narendra Singh Tomar launched an online portal for the beneficiaries. The link to the online portal is: https://plimofpi.ifciltd.com

As a part of the Prime Minister's announcement of Aatmanirbhar Bharat Abhiyan, the Government of India has approved a new Central Sector Scheme, namely 'Production Linked Incentive Scheme for Food Processing Industry' for implementation during 2021-22 to 2026-27 with an outlay of Rs 10,900 crore 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.

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:

Category-I: Applicants are large entities who apply for incentives based on sales and investment criteria. The applicant under this category could undertake branding and marketing activities abroad and apply for a grant under the scheme with a common application.

Category-II: SMEs applicants manufacturing innovative or organic products who apply for PLI incentive based on sales.

Category-III: Applicants applying solely for a grant for undertaking branding and marketing activities abroad.

The applicant for the Scheme shall be - Proprietary firm or partnership firm or limited liability partnership (LLP) or a Company registered in India; Co-operatives; and SME and making an application for seeking approval for coverage under the Scheme. The applicant may also include the company applying on its behalf. It is subsidiary/ies provided the applicant company holds more than 50% of the stock of its subsidiary/ies and that none of such subsidiary company/ies 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 would 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. For the 5th & 6th years, the base year would be 2021-22 & 2022-23, respectively. Sales shall include sales of eligible food products manufactured by the applicants and its subsidiaries and contract manufactures. Applicants will be extended grant @ 50% of expenditure on branding & marketing abroad subject to a maximum grant of 3% of Sales of food products or Rs 50 crore per year, whichever is less. The minimum expenditure for branding abroad shall be Rs 5 crore over five years.

Selection of Applicant under Category-I will be based on their sales, exports, committed investment. Four product segments are proposed to be incentivized under the scheme - Ready to Cook or Ready to Eat (RTC/ RTE), including millet-based foods, processed fruits & vegetables, marine products and mozzarella cheese. Food products included for coverage and those excluded under various segments have been listed in the guidelines. Selected applicants must fulfill the minimum required sales growth rate criterion to become eligible for the incentive.

Selection of SME Applicants under Category-II and for innovative or organic products would be based on their proposal, uniqueness of the product, product development level, and more. Selection of applicants under category III for branding and marketing abroad would be based on recognizing their brand, strategy and plan for production, sales, exports, and branding of products in domestic and export markets.

Details regarding eligibility conditions, minimum investment, selection criteria, the scale of incentives are covered in the operational guidelines.

The detailed Scheme guidelines and EOI are available on Ministry's Website. The proposals/ EoIs will be received only through the online portal: https://plimofpi.ifciltd.com. The last date for submission of the application is 17 June 2021 upto 5:00 PM.