Food processing units worldwide are expected to be dynamic. They need to be accommodative of changes that keep coming in the industry, and for that needs to be a system in place, lest the whole structure runs amok, ruining people’s eating experiences.
One of the main objectives of the scheme is the creation of specific processing and preservation capacities and even the modernization of prevalent food processing units. This is done with the intention of increasing the level of processing, adding value and increasing efficiency which leads to less wastage of resources used.
The scheme is an initiative by the Ministry of Food Processing Industries, which is a fraction of the Government of India.
Benefits of the scheme
- The main ideology of the scheme is to offer financial assistance to food processing units in the form of grant-in-aid.
- 35% of the eligible project cost subject to a maximum of ₹5 crore in General areas.
- 50% of the Eligible project cost is subject to a maximum of ₹5 crores in North Eastern states including Sikkim and areas like Himalayan states like Himachal Pradesh, J&K, and Uttarakhand where logistics are not as easy to carry out.
The registration process
The applications under this scheme will be invited only through the Expression of Interest (EoI). An applicant, initially, is required to submit their application for the loan to the bank for appraisal and sanction of the Term loan for the project.
The application for financial assistance in a format prescribed by the department needs to be submitted online. Subsequently, a hard copy has to be sent by the applicant. This has to be sent directly to the MoFPI within 10 working days post the successful uploading of the online application.
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