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Food Irradiation Unit Subsidy: PMKSY Subsidy, Eligibility & Financial Incentives

Introduction: Food Irradiation Unit Subsidy

Setting up a food irradiation facility can require a large investment in specialised plant, machinery, technical civil works and supporting infrastructure. For eligible project promoters, the Food Irradiation Unit Subsidy under the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) can help reduce the financial burden.

The support is provided under the Integrated Cold Chain & Value Addition Infrastructure Scheme, specifically for setting up multiproduct food irradiation units. The scheme aims to support irradiation facilities used for treating perishable agricultural produce and other suitable products for hygienist and improved shelf life.

The opportunity is particularly relevant for businesses planning a new irradiation facility. It can also be useful for organisations looking to combine irradiation with cold-chain and value-addition infrastructure.

What Is the Food Irradiation Unit Subsidy Under PMKSY?

The Food Irradiation Unit Subsidy is financial assistance available under the PMKSY component covering integrated cold chain and value-addition infrastructure.

The scheme supports:

  • Standalone food irradiation units
  • Food irradiation units integrated with cold-chain infrastructure
  • Food irradiation units integrated with value-addition facilities
  • Multiproduct food irradiation projects

The schemes state that the food irradiation component is mandatory for financial assistance under this scheme. A proposal without the food irradiation component is not considered for assistance.

Therefore, the PMKSY Food Irradiation Subsidy can be relevant to a wider food-processing infrastructure project rather than only a radiation-processing machine.

Financial Incentives Under the Food Irradiation Unit Subsidy

This is the most important part of the scheme from a project-financing point of view.

Under the 2024 schemes, grants-in-aid are provided at:

Project / Applicant Category

Assistance Rate

Maximum Assistance

General Areas

35% of eligible project cost

₹10 crore

Difficult Areas

50% of eligible project cost

₹10 crore

SC/ST Projects

50% of eligible project cost

₹10 crore

FPOs

50% of eligible project cost

₹10 crore

SHGs

50% of eligible project cost

₹10 crore

The assistance is subject to the maximum ceiling of ₹10 crore per project and applies to eligible project costs relating to Plant & Machinery and Technical Civil Works.

What Project Costs Can Be Considered?

The scheme allows assistance for several facilities connected with the irradiation project.

These may include:

  • Food irradiation units
  • Mechanised sorting and grading lines
  • Packing lines
  • Staging cold rooms
  • Pre-cooling units
  • Cold storage associated with value addition
  • Controlled-atmosphere storage
  • Frozen storage and deep freezers
  • Packaging lines
  • Refrigerated or insulated transport infrastructure
  • Refrigerated containers
  • Certain renewable or alternate energy technologies
  • Support infrastructure and utilities
  • In-house product testing laboratories
  • Modern temperature-controlled storage and processing infrastructure

However, not every expense qualifies.

The schemes specifically exclude items such as land and site development costs, administrative office buildings, working capital, fuel, consumables, transport vehicles, pre-operative expenses, consultancy fees and several non-technical or unrelated costs.

Food Irradiation Unit Eligibility

The scheme allows several types of entities to participate.

Eligible entities mentioned in the schemes include individuals and organisations such as:

  • FPOs
  • FPCs
  • SHGs
  • NGOs
  • PSUs
  • Firms
  • Companies
  • Other organisations interested in food irradiation and cold-chain solutions

Entities from the MSME sector are also given priority during assessment.

However, eligibility is not based only on the type of organisation.

The schemes further require equity infusion of at least:

  • 20% of total project cost for General Areas
  • 10% for Difficult Areas or eligible SC/ST, FPO or SHG proposals

The required term loan is at least 20% of total project cost for General Areas and at least 10% for the specified categories and Difficult Areas.

New Land Requirement for Food Irradiation Units in 2026

The land requirement has been an important point for prospective applicants.

The 14 July 2026 Corrigendum revised the earlier requirement.

The revised provision states that the minimum land required for setting up either a standalone or integrated multiproduct food irradiation unit is 1 acre.

This is an important 2026 update and should be reflected in current content about Food Irradiation Unit Eligibility.

The FAQ issued after the June 2026 pre-bid meeting also clarifies that the minimum 1-acre requirement cannot be relaxed for proposals from Difficult Areas.

Food Irradiation Subsidy 2026

The 2026 documents introduce important updates for businesses considering a multiproduct irradiation project.

The Ministry issued an EOI for multiproduct food irradiation units under the Integrated Cold Chain & Value Addition Infrastructure component of PMKSY. The July 2026 extension notice confirms that proposals under the EOI dated 20 May 2026 can be submitted up to 17:00 hrs on 31 August 2026.

Another important update concerns the Department of Atomic Energy requirement.

The July 2026 Corrigendum permits either:

  • an MoU/agreement with the designated Department of Atomic Energy agency for the radiation source, or
  • a firm recommendation letter from the designated agency.

Where a recommendation letter is used, the successful applicant must submit the final MoU within 60 days from the date of the approval letter. The radiation source must also comply with the applicable Atomic Energy rules.

The 2026 FAQs also clarify that the current EOI is for multiproduct food irradiation units, not a general irradiation facility for medical or pharmaceutical purposes.

How the Food Irradiation Unit Consultant Can Help

A Food Irradiation Unit Consultant can help promoters evaluate the project before committing substantial capital.

At Finraja Consultancy Private Limited, the focus can be on subsidy-oriented project assessment rather than simply explaining the scheme.

This approach helps the promoter understand the financial impact of the scheme before moving forward.

Importantly, subsidy approval is not automatic. The schemes state that proposals are evaluated through the prescribed assessment process, and a proposal must achieve the required minimum marks for consideration of grants-in-aid. The threshold is 60%, while the minimum is 45% for applicants from SC/ST categories.

Conclusion

The Food Irradiation Unit Subsidy under PMKSY offers a significant opportunity for businesses planning multiproduct food irradiation infrastructure in India.

The key financial benefit is assistance of 35% of eligible project cost in General Areas and 50% in Difficult Areas and specified categories, subject to a maximum of ₹10 crore per project.

For the current 2026 EOI, the submission timeline has also been extended to 31 August 2026 at 17:00 hrs.

Finraja Consultancy Private Limited can support businesses with scheme-focused eligibility review, subsidy assessment, DPR coordination and financial structuring for eligible food irradiation projects.

Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.

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