{"id":41096,"date":"2022-03-14T11:39:48","date_gmt":"2022-03-14T06:09:48","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=41096"},"modified":"2022-03-14T11:39:50","modified_gmt":"2022-03-14T06:09:50","slug":"production-linked-incentive-scheme-for-food-processing-industry","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/","title":{"rendered":"Production Linked Incentive Scheme for Food Processing Industry: Explained"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Production Linked Incentive Scheme for Food Processing Industry seeks to support the creation of global food manufacturing champions, advocate Indian brands, escalate job opportunities relating to off-farm jobs, and ensure remunerative prices for farm produce and healthy income for farmers. The GOI implemented this scheme on March 31<sup>st<\/sup>, with an outlay of Rs 10,9000 crore. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/#Background\" >Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/#Objectives_of_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\" >Objectives of Production Linked\nIncentive Scheme for Food Processing Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/#Salient_features_of_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\" >Salient features of Production\nLinked Incentive Scheme for Food Processing Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/#Implementation_strategy_and_targets_under_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\" >Implementation strategy and\ntargets under Production Linked Incentive Scheme for Food Processing Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/#Administrative_and_Implementation_Mechanisms_under_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\" >Administrative and\nImplementation Mechanisms under Production Linked Incentive Scheme for Food\nProcessing Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/#Selection_process_under_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\" >Selection process under Production\nLinked Incentive Scheme for Food Processing Industry<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/production-linked-incentive-scheme-for-food-processing-industry\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Background\"><\/span>Background <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Indian food processing sector covers manufacturing facilities across all segments from micro to large industries.<\/li><li>India has the upper hand in terms of the large domestic market, resource endowment, and scope of advocating value-added products.<\/li><li>Sector seeks revitalization of Indian companies for achieving full potential. Companies must improve their current standing in terms of productivity, the scale of output, value addition &amp; their linkages with the global value chain. <\/li><li>The Government has formulated the Production Linked Incentive Scheme for the Food Processing Industry based on the Production Linked incentive scheme of NITI Aayog to improve India&#8217;s manufacturing and export capabilities. <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Objectives_of_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\"><\/span>Objectives of Production Linked\nIncentive Scheme for Food Processing Industry<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Assist Food manufacturing facilities with\nstipulated minimum Sales and investment to augment processing capacity and\nbranding abroad to promote the emergence of prominent Indian Brands. <\/li><li>Empower food businesses to become global food\nmanufacturing champions;<\/li><li>Strengthen prominent Indian brands for increased\nacceptance in the global markets; <\/li><li>Ramping up employments opportunities relating to\noff-farm jobs <\/li><li>Ensuring remunerative prices relating to farm\nproduce and increased income of farmers<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Salient_features_of_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\"><\/span>Salient features of Production\nLinked Incentive Scheme for Food Processing Industry<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Central Sector Scheme having worth around Rs.\n10900 crore<\/li><li>The first component relates to advocating\nmanufacturing of four prominent food articles segment viz. Ready to Eat\/Ready\nto Cook foods including Processed Fruits &amp; Vegetables, Millets based\nproducts, Marine Products, Mozzarella Cheese.<\/li><li>Innovative\/Organic items of SMEs, including Free\nRange- Poultry, Eggs, Meat, in these segments are also encompassed under the\nabove component. <\/li><li>The selected applicant shall be required to make\nfunding, as cited in the application (Subject to the prescribed minimum) in\nfacility and machinery\/equipment in the first two years in 2021-22 and 2022-23.\n<\/li><li>Funding made in 2020-21 also to be considered\nfor fulfilling the underlying investment. <\/li><li>The norms around stipulated Minimum Sales and\nmandated investment shall not encompass companies selected for making\nunique\/organic products. <\/li><li>The second component relates to bolster for\nmarketing and branding abroad to promote the emergence of prominent Indian\nbrands. <\/li><li>For incentivization of Indian brand abroad, the\nscheme aims grant to the applicant companies for in-store branding, shelf space\nmarketing and renting. <\/li><li>Scheme shall be implemented over six years from\n2021-22 to 2026-27.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Implementation_strategy_and_targets_under_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\"><\/span>Implementation strategy and\ntargets under Production Linked Incentive Scheme for Food Processing Industry<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The scheme shall be implemented on Pan Indian\nbasis. <\/li><li>The scheme shall be introduced via a Project\nManagement Agency (PMA).<\/li><li>The Project Management Agency would, inter-alia,\nbe liable for appraisal of applications, vetting of eligibility for support, an\ninspection of claims eligible for incentive&#8217;s disbursement.<\/li><li>The incentive available under the scheme would\nbe rendered for six years ending 2026-27. The incentive payable for a given\nyear shall be due for payment in the subsequent year. The scheme duration shall\nbe six years, i.e. 2021-22 to 2026-27.<\/li><li>The scheme has fund limitation; meaning- cost\nshall be confined to the validated amount. The maximum incentive available to\nthe beneficiary shall be fixed beforehand at the time of approval of such\nbeneficiary. The maximum incentive shall remain unchanged irrespective of\nperformance<\/li><li>The scheme shall facilitate the augmentation of\nprocessing capacity to generate processed food worth Rs Rs 33,494 crore and\ncreate 2.5 lakh jobs by the year 2026-27.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Administrative_and_Implementation_Mechanisms_under_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\"><\/span>Administrative and\nImplementation Mechanisms under Production Linked Incentive Scheme for Food\nProcessing Industry<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>The Scheme would be tracked by the Empowered Group of Secretaries managed by the <strong>Cabinet Secretary<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Cabinet_Secretary_(India)\"><strong>[1]<\/strong><\/a><\/sup><\/li><li>Inter-Ministerial Approval Committee shall deal with the applicant&#8217;s selection, sanction and disbursement of funds as incentives.<\/li><li>The Ministry shall draft an Annual Action Plan catering to various activities for the scheme&#8217;s implementation. <\/li><li>A third-party validation and mid-term vetting mechanism shall be calculated in the programme. <\/li><\/ul>\n\n\n\n<p><strong><em>Major impact, including employment creation\npotential<\/em><\/strong><strong><em><\/em><\/strong><\/p>\n\n\n\n<ul><li>The scheme shall ensure the expansion of\nprocessing capacity to produced process food output worth Rs Rs 33,494 crore\nand;<\/li><li>Create around 2.5 lakh jobs by the year 2026-27.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Selection_process_under_Production_Linked_Incentive_Scheme_for_Food_Processing_Industry\"><\/span>Selection process under Production\nLinked Incentive Scheme for Food Processing Industry<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>All\neligible applicants shall be ranked depending on the mark secured in the\nevaluation criteria as mentioned in Appendix-E. The applicant obtaining the\nhighest marks shall be placed at the first position, followed by the applicant\nobtaining the second highest marks and so on. The applicants&#8217; selection shall\nbe in the order of their ranks. The waitlisted applicants shall be maintained\nalong with selected Applicants.<\/li><li>The\nbudget availability shall be considered as the limiting factor for the\napplicant selection process.<\/li><li>The\nmaximum and minimum incentive outlay has been limited to 25% and 5% of the\noverall budget of the respective segment, respectively. However, companies from\nthe Fruits &amp; Vegetable segment may get the relaxation of 5 per cent for\nminimum incentive outlay.<\/li><li>Inter-segment\nallocation of funds shall be accessible for the Fruits and Vegetable Segment. <\/li><li>The reduction for Inter-segment allocation of\nfunds is not available for Branding &amp; Marketing abroad, and it may be\nincreased in future.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Production Linked Incentive Scheme for <a href=\"https:\/\/corpbiz.io\/learning\/food-processing-industry-in-india\/\"><strong>Food Processing Industry<\/strong><\/a> serves various objectives including global food manufacturing champions, incentivization\u00a0of Indian brands, and creation of job opportunities. In a nutshell, the scheme targets various pain points within the food sector and strive to address them with proactive measures.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/market-intervention-price-scheme-mips-for-farmers\/\">Market Intervention Price Scheme (MIPS) for Farmers: An Overview\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Production Linked Incentive Scheme for Food Processing Industry seeks to support the creation of global food manufacturing champions, advocate Indian brands, escalate job opportunities relating to off-farm jobs, and ensure remunerative prices for farm produce and healthy income for farmers. The GOI implemented this scheme on March 31st, with an outlay of Rs 10,9000 crore. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":41099,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[150],"tags":[2180],"acf":{"service_id":"318"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":3272,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41096"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=41096"}],"version-history":[{"count":13,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41096\/revisions"}],"predecessor-version":[{"id":41110,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/41096\/revisions\/41110"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/41099"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=41096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=41096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=41096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}