Govt issues norms for `10,900 cr PLI scheme for food processing
New Delhi: The food processing ministry on Monday said it has issued detailed guidelines of Rs 10,900 crore production linked incentive scheme that has recently been announced for the growth of the sector. Agriculture and Food Processing Minister Narendra Singh Tomar launched an online portal for Production Linked Incentive Scheme for Food Processing Industry.
The government has approved a new central sector scheme for implementation during 2021-22 to 2026-27 with an outlay of Rs 10,900 crore to support creation of global food manufacturing champions and support Indian brands of food products in the international markets. The ministry 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.
The last date for submission of application is June 17. Under the first category, the applicants are large entities which can apply for incentive based on sales and investment criteria. Applicants under this category could undertake branding and marketing activities abroad also and apply for grant under the scheme with a common application.
Under the Category-II, SMEs applicants manufacturing innovative/ organic products can apply for PLI Incentive based on Sales. In the third category, applicants can apply solely for grant for undertaking branding and marketing activities abroad. 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 5th and 6th years, the base year would be 2021-22 and 2022-23, respectively. Sales should include sales of eligible food products manufactured by the applicants as well its subsidiaries and contract manufactures.