The government’s Production-Linked Incentive Scheme (PLI) for the food processing sector has evoked strong interest from packaged food companies. The Food Processing Ministry had sought expressions of interest (EIOs) till June 24 for seeking incentives under the scheme, which has been notified with an outlay of ₹10,900 crore for five years till 2026-27.

Sources said that the Food Processing Ministry has got about 274 applications seeking incentives under the PLI scheme, which includes both large and small and medium sized players under various categories.

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In the first category, the Ministry aims to encourage investment and domestic production expansion in four key segments which include ready-to-cook and ready-to-eat including millet-based foods, processed fruits and vegetables, marine products and mozzarella cheese.

The Ministry sought proposals from large entities to apply for incentives based on sales and investment parameters in this category and is learnt to have received 94 applications from 83 companies.

In the second category that is targeted at small and medium enterprises to strengthen manufacturing of innovative or organic products through sales-based incentives, the Ministry has received nearly 89 applications, sources added.

Branding, marketing

A large number of applications have also been received for grants for branding and marketing activities abroad. A senior official said that the applications will now be evaluated and decision on selection of the candidates will be taken by mid-August. Last month, the Ministry had set up an approval committee chaired by Union Minister Narendra Singh Tomar besides other technical committees that will be evaluating these applications.

“The objective of the scheme is to support the creation of global food manufacturing champions; promote Indian brands of food products; increase employment opportunities for off-farm jobs, ensure remunerative prices of farm produce and higher income to farmers,” the Ministry had stated earlier.

According to the operational guidelines, the three key criteria for evaluation of the applications include sales (Domestic & Exports) in 2019-20 of food products listed in the application, export sales of items covered and committed investments. Applicants will need to achieve minimum CAGR in sales over the base year and achieve committed investment year-wise to avail the incentives.

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