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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
- Firstly, PLI scheme will support food manufacturing org with stipulated minimum Sales.
- Furthermore, it will support Indian brands of food products in the international markets with an outlay of Rs. 10900 crore.
- Moreover, it will increase employment opportunities for nearly 2.5 lakh persons by the year 2026-27.
- 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
- First component of the scheme
- It will incentivize the manufacturing of four major food product segments:
- Marine Products,
- Mozzarella Cheese
- Processed Fruits & Vegetables
- 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.
- It will incentivize the manufacturing of four major food product segments:
- 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
