The Ministry of Food Processing Industries (MoFPI) has been implementing the Scheme for Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). The guidelines for the implementation of the scheme were last updated on June 8, 2022.

The main objective of the Scheme for Creation/ Expansion of Food Processing & Preservation Capacities is creation of processing and preservation capacities and expansion of existing food processing units which will help in increasing the level of processing, value addition and thereby lead to reduction in food loss and result in enhancement of farmers’ income.

Based on the experience gained from the implementation of the scheme, the guidelines have been revised. The updated guidelines are now in effect and will replace the previous guidelines from June 8, 2022. These updated guidelines aim to improve the framework for the creation and expansion of food processing and preservation capacities.

Eligible entities

(a) Any individual / Central & State PSU / Joint Venture / NGO /Cooperative / Self Help Group (SHG) / Farmer Producer Organizations (FPO) / Farmer Producer Company (FPC) / Public & Private Sector Companies / Limited Liability Partnership (LLP) / Partnership Firm /Proprietorship Firm engaged in or planning to engage in creation/expansion of food processing and preservation capacities would be eligible for financial assistance under the Scheme.

(b) Proposals received from Scheduled Caste (SC)/ Scheduled Tribe (ST) promoters holding at least 51% stake in the entity, only will be treated as proposals under SC/ST category.

Also, the minimum eligible project cost will be Rs.3 (three) crore for proposals in General Areas and Rs.1 (one) crore in case of proposal from Difficult Areas and for SC/ST proposals.

Pattern of assistance

Grants-in-aid/subsidy will be @35% of eligible project cost for projects in General Areas and @50% of eligible project cost for projects in Difficult Areas as well as for projects of SC/ST, FPOS and SHGs subject to a maximum of Rs.5 crore.

Release of grants-in-aid/subsidy

(a) The grants-in-aid/subsidy will be released in two (2) equal instalments.

(b) Schedule for submission of claims for release of instalments (from the date of issue of approval letter) will be as under:

Impact: Stakeholders involved in food processing and preservation activities, particularly those benefiting from PMKSY, must adhere to the updated guidelines for better alignment with the latest operational changes. These updates are intended to enhance the efficiency and effectiveness of the scheme.