Agro Processing Cluster - Industrial Subsidy

The Agro Processing Cluster scheme is introduced by Ministry of Food Processing Industries (MoFPI). The scheme aims for development of modern infrastructure and to encourage entrepreneurs to set up food processing units based on cluster approach. So that these clusters will help in reducing the wastage of the surplus produce and add value to the horticultural / agricultural produce. Which inturn will result in increase of income of the farmersand create employment at the local level.

Few capital intensive infrastructure like machinery sorting, grading, cleaning etc are commonly used by almost all Food Processing Industries. There are also few basic enabling infrastructure like water supply, power supply, effluent treatment, roads etc., which cannot be avoided. Developing these common and basic facilities requires a lot of investment. The Agro Processing Cluster Scheme by MoFPI, encourages entrepreneurs to develop the common and basic infrastructure facilities so that it becomes more viable to setup Food Processing industries with the basic facilities already available.

Pattern of Assistance:

The assistance is given in form of Grant-in-Aid towards the capital cost in the following manner.

• For general areas grant-in-aid at 35% of eligible project cost
• For North-East states and Difficult areas at 50% of eligible project cost
• Maximum of Rs. 10 Crore per project.

Release of Grant

• First installment of 35% of the total approved grant is released to the PEA after incurring an expenditure of 35% of the bank term loan and 35% promoters contribution/ equity
• Second installment of 40% of the total approved grant is released after incurring an expenditure of 75% of the bank term loan and 75% of promoters’ contribution / equity
• Third installment of 15% of the total approved grant is released after incurring an expenditure of 90% of the bank term loan and 90% of promoters’ contribution / equity
• Fourth & final installment of 10% of the approved amount is on completion of the project and submission of requisite documents.

Eligible components of the Scheme - 

The scheme will have following components:

1. Basic enabling infrastructure:
   1. Development of industrial plots
   2. Boundary wall
   3. Roads
   4. Drainage
   5. Water supply
   6. Electricity supply including power backup
   7. Effluent treatment plant
   8. Parking bay
   9. Weigh bridges
   10. Common office space etc.
2. Core infrastructure:
   1. Food testing laboratory
   2. Cleaning
   3. Grading
   4. Sorting
   5. Packing facilities
   6. Steam generation boilers
   7. Dry warehouse
   8. Cold storage
   9. Pre-cooling chambers
   10. Ripening chambers
   11. IQF
   12. Specialized packaging
   13. Other common processing facilities

Timeline for completing the project

Important to remember

1. The project proposals need to achieve the cut-off score of 60 marks for being eligible for assessment under the scheme.
2. In case of non-adherence of time lines, a penalty of 1% of the quantum of installment amount due for release for that installment, will be imposed for each month’s delay.
3. The Ministry will periodically review the progress of the projects under the Scheme.
4. Pre and post inspection would also be undertaken by the Ministry officials, PMA and State Govt. to find out the physical, financial and operational progress as and when required

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