With the approval of the Production Linked Incentive (PLI) scheme of the GoI, the Ministry of Food Processing Industries (MoFPI) has started working on its guidelines.
It is learnt that the detailed Scheme Guidelines would include a list of products eligible for incremental sales-based incentive in each product category, minimum Cumulative Aggregate Growth Rate (CAGR) to be achieved each year by the selected entities to be eligible to receive the incentive and procedure for applying amongst others.
According to the MoFPI, the objective of the scheme is to support creation of global food manufacturing champions, support India brands of value-added food products in the global markets and so on.
The outlay for the MoFPI under PLI scheme was Rs 10,900 crore during 2021-22 to 2026-27.
The PLI scheme has three components. The first component was identification of large manufacturers who can commit prescribed investment and achieve sales as per prescribed growth rate in four segments of ready to cook/eat, processed fruits and vegetables, marine products and mozzarella cheese.
The second component was for providing support to small and medium enterprises in the above four segments who manufacture innovative or organic products and the third component was to provide grants to companies for branding and marketing to incentivise strong Indian global brands.
According to the ministry, the segment-wise outlay under the scheme was Rs 4,181 crore for RTE food, Rs 3,582 crore for processed food, Rs 993 crore for marine products, and Rs 283 crore for Mozzarella cheese. Besides there will be grants for branding and marketing, as well.
There were also provisions for Rs 250 crore earmarked for innovative/organic products in the SME sector including free range eggs, poultry meat, egg products.