Cabinet nod to Rs 10,900 cr PLI scheme for food processing

New Delhi: In a major decision aimed at creating job opportunities, the government on Wednesday approved a production-linked incentive (PLI) scheme for the food processing sector that would

require an outlay of Rs 10,900 crore.

The scheme, which was approved by the Union Cabinet chaired by Prime Minister Narendra Modi, will help create 2.5 lakh jobs, boost exports and ensure availability of a wider range of value-added products for consumers.

While sharing the details of the scheme, Union Food Minister Piyush Goyal said, "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."

The scheme, which will be rolled out across the country for a period of six years i.e. 2021-22 to 2026-27, would be implemented through a project management agency (PMA) that would be responsible for appraisal of applications/proposals, verification of eligibility for support, scrutiny of claims eligible for disbursement of incentive.

As per the official statement, the incentive under the scheme would be paid for six years ending 2026-27 and the incentive payable for a particular year will be due for payment in the following year.

On the occasion, Information and Broadcasting Minister Prakash Javadekar said that the government in the Budget had announced PLI scheme for 12-13 sectors. PLI has been announced for six sectors already.

"Today, PLI for the food processing industries has been approved. This will boost production of value-added food products, attract foreign investment, create job opportunities besides benefiting farmers with remunerative prices for the produce," Javadekar said.