Union Cabinet approves PLI Scheme for Food Processing Industry

Why in the news?

The Union Cabinet approves the PLI(Production Linked Incentive) Scheme for Food Processing Industry (PLISFPI).

About PLI scheme for Food Processing Industry

• The scheme will be implemented over a six-year period from 2021-22 to 2026-27.
• Aim: The scheme aims to support the creation of global food manufacturing champions according to the natural resources of India.

Objectives of the Scheme

1. Firstly, PLI scheme will support food manufacturing org with stipulated minimum Sales.
2. Furthermore, it will support Indian brands of food products in the international markets with an outlay of Rs. 10900 crore.
3. Moreover, it will increase employment opportunities for nearly 2.5 lakh persons by the year 2026-27.
4. Finally, the scheme will ensure good prices for farm produce and higher income to farmers.

Salient features of the PLI scheme for Food Processing Industry

1. First component of the scheme
   • It will incentivize the manufacturing of four major food product segments:
     1. Marine Products,
     2. Mozzarella Cheese
     3. Processed Fruits & Vegetables
     4. Ready to Cook/ Ready to Eat (RTC/ RTE) foods
   • Selected applicants will require investing in Plant & Machinery in the first two years i.e. in 2021-22 & 2022-23.
   • The amount of Investment during 2020-21 will be counted for meeting investment requirements.
   • The entities selected for making innovative/ organic products will be exempt from the Minimum Sales and mandated investment requirements.
2. 2nd component of the scheme
   • Under this component, support will be provided for branding and marketing abroad.
   • The entity will receive grants for in-store Branding, shelf space renting, and marketing.

Implementation of the scheme

• Implemented by: Project Management Agency (PMA)
• Also, PMA will be responsible for verification of eligibility for support, scrutiny of claims eligible for disbursement of incentive.
• Furthermore, the scheme is “fund-limited”, i.e. the amount restricts to the approved limit. This amount will not exceed even in case of outstanding performance.

Source: PIB