Policy

Food Processing Ministry floats EoI for PLI scheme

Meenakshi Verma Ambwani New Delhi | Updated on May 03, 2021

The scheme aims to also offer incentives to players involved in frozen, steamed, boiled, pickled, dried, processed, preserved or provisionally processed fruit and vegetables   -  BL

Selected applicants will get sales-based sops after fulfilling fresh investment target

The Ministry of Food Processing has floated an expression of interest (EoI) inviting applications from companies for availing incentives under the recently announced Production-linked Incentive (PLI) scheme for the sector with an outlay of ₹10,900 crore. Applicants will need to submit their proposals by June 17 through the Ministry’s online portal.

Application categories

Selected applicants will be able to avail sales-based incentives after fulfilling targets set for fresh investments or will be able to get grants for branding and marketing activities abroad under the scheme.

According to the EoI, the applications have been invited in three categories which include large entities that can apply for incentives based on sales and investment criteria. The other two categories include small and medium enterprises manufacturing innovative or organic products to avail incentive based on sales, and applicants applying solely for grants for undertaking branding and marketing activities abroad.

The scheme aims to incentivise manufacturing by large entities in four key categories which include ready-to-cook and ready-to-eat (RTC and RTE), fruits and vegetables, marine products and mozzarella cheese.

According to the guidelines of the scheme, the RTE/RTC category will include various packaged products including ready meals, soups and ready mixes, Indian savoury snacks, sweets, desserts, snack bars, bakery products and ready-to-drink products such as milk-based beverages, among others. “Products with specified percentage of millet, except flour or atta, are also included irrespective of their status for inclusion/exclusion,” it added.

However, companies making products in categories such as pizza, pasta, noodles, spaghetti, breakfast cereals, confectionery, malt-based drinks, soft drinks, aerated water, packaged nuts, among others, besides staples are not eligible to apply.

The scheme aims to also offer incentives to players involved in frozen, steamed, boiled, pickled, dried, processed, preserved or provisionally processed fruit and vegetables. Under the fruits and vegetables category, fruit-based beverages, jams, jellies, tomato ketchup, pastes and fruit juices (10 per cent fruit content) have also been included. “Spices (both mixed and single spices) packaged in consumer size packs would be included under the scheme. Potato chips are excluded from the scheme,” the Ministry stated.

Under the Marine products category, the Ministry said that selected applicants involved in chilled, frozen, steamed or boiled crustacean and molluscs product will get “normal rate of incentives”.

Selected Indian brands will also get grants for branding and marketing activities such as in-store branding, shelf space renting, listing fee, commercial advertising, outdoor publicity and billboards among others. “The grants will not cover trade discounts, expenditure incurred on distribution, and overseas logistics expenditure,” the Ministry added.

Published on May 03, 2021

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