New Food Processing Units Scheme

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APFPS – Establishment of New Food Processing Units Scheme

The main objective of the scheme is to increase the level of processing, reduction of wastage, value addition, enhance the income of farmers as well as increase exports.

Pattern of Assistance  The scheme provides assistance in the following forms.

  1. Grant-in-aid:
    1. 25% of Eligible project cost
    2. Maximum Cap of Rs. 5 Crore
  2. Interest Subsidy:
    1. 7% interest subsidy per year
    2. For 5 years from date of completion
    3. The benefit is directly transferred to the lending bank
    4. Maximum cap of Rs. 2 Crore

Eligible Sectors of the Scheme

  • Fruits & vegetables, milk / meat / poultry, cereal, rice / flour/pulse/oil milling
  • Agri - horti sectors including food flavours, colours, oleoresins, spices, coconut, mushrooms, wines and hops

Release of Grant

  • 1st installment - 50% 
  • 2nd installment - 50%
  • Release of Interest subvention: released for every 6 months after completion of every half-year i.e., 31st March for first half year and 30th September for second half year for 5 years from the date of Commercial production
  • Release of each installment is subjected to various terms and conditions as specified in the scheme guidelines

Important to Remember The Govt. will have the authority to recall the grant:

  • If the project is not completed in time within the approved project period.
  • If the project is not completed even within the extended project period approved by competent authority.
  • If the institute / organization become non-functional or said activity / organization is closed before 6 years from the date of Commercial operations.
  • If the unit shall not submit the Audited reports of every financial year for a period of 6 years, within 4 months from completion of respective financial year.

For more details about the scheme please contact us. We can help you with

  • Making error free applications to APFPS with accurate Detailed Project Reports, Technical Standards and Protocols.
  • Reviewing Bank Appraisal Reports to check for any data inconsistencies
  • Maintaining the progress of the project as per the recommendations APFPS
  • Assist you in the regular Joint Inspections and submission of follow-up documents to APFPS
  • Represent your case before APFPS for any difficulties faced in implementation of the project.

Our Unique Services

  1. Preparation of Detailed Project Reports (DPR)
  2. Layout Drawings
  3. Facilitating various permissions required from various Govt. Departments
  4. Error free application processing for various subsidies and incentives
  5. Facilitating the arrangement of subsidies and incentives from Govt. Departments
  6. Advisory on Purchase of Machinery / Technology and Civil works


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