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Ministry of Food Processing Industries Issues Guidelines for Production Linked Incentive Scheme For The Industry

Capital Market 

The Ministry of Food Processing Industries (MoFPI) has issued detailed operational scheme guidelines and has launched an online portal for'Production Linked Incentive Scheme for Food Processing Industry'(PLISFPI). As a part of Prime Minister's announcement of Aatmanirbhar Bharat Abhiyan, Government of India has approved a new Central Sector Scheme namely 'Production Linked Incentive Scheme for Food Processing Industry' for implementation during 2021-22 to 2026-27 with an outlay of Rs. 10,900 crore to support creation of global food manufacturing champions. Applicant for the Scheme shall be (i) Proprietary Firm or Partnership Firm or Limited Liability Partnership (LLP) or a Company registered in India (ii) Co-operatives; and (iii) SME and making an application for seeking approval for coverage under the Scheme. Applicant may also include company applying on its own behalf and its subsidiary/ies provided the applicant company holds more than 50% of the stock of its subsidiary/ies and that none of such subsidiary company/ies is included in any other applicant company under the scheme; or Marketing Federation or Apex level co-operatives applying on behalf of Member Unions or Member co-operatives in the case of co-operatives.

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. Base Year for calculation of Incremental sales would be 2019-20 for the first 4 years. For 5th & 6th years, the base year would be 2021-22 & 2022-23 respectively. Sales shall include sales of eligible food products manufactured by the applicants as well its subsidiaries and contract manufactures. Applicants will be extended grant @ 50% of expenditure on branding & marketing abroad subject to a maximum grant of 3% of Sales of food products or Rs 50 crore per year, whichever is less. The minimum expenditure for branding abroad shall be Rs. 5 crore over a period of five years.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Tue, May 04 2021. 09:43 IST
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