Agro Processing Cluster APC Scheme
Objectives:
- Build modern food processing infrastructure near production areas.
- Provide end-to-end preservation facilities from farm to consumer.
- Strengthen linkages between farmers, processors, and markets via efficient supply chains.
Salient Feature:
- Minimum 5 food processing units with at least ₹25 crore investment to be set up in agro-processing clusters.
- Units can be set up by Project Implementing Agency (PIA) or other entrepreneurs.
- These units will not receive financial aid under the scheme.
Components of the Scheme
The scheme will have following components:
a) Basic enabling infrastructure:
It will include site development such as development of industrial plots, boundary wall, roads, drainage, water supply, electricity supply including power backup, effluent treatment plant, parking bay, weigh bridges, common office space, firefighting, labour rest room, security guard room, solar panel/ equipment
However, the cost of basic enabling infrastructure not exceeding 40 percent of the eligible project cost would be eligible for financial assistance under the Scheme. The cost of any basic enabling infrastructure outside the boundary wall of the agro-processing cluster will not be eligible for financial assistance under the Scheme.
b) Core infrastructure:
The common facilities will be based on need of the units which will be set up in these clusters. The common facilities of capital-intensive nature may include food testing laboratory, cleaning, grading, sorting and packing facilities, steam generation boilers, dry warehouse, cold storage, pre-cooling chambers, ripening chambers, IQF, specialized packaging, Forklift, and other common processing facilities.
Eligible Entities
(a) Agro Processing Cluster Projects can be set up by an entity/organisation such as Central & State PSU / Joint Venture / NGO / Cooperative / Self Help Group (SHG) / Farmer Producer Organizations (FPO) / Farmer Producer Company (FPC) / Public & Private Sector Companies / Limited Liability Partnership (LLP) / Partnership Firm / Proprietorship Firm.
(b) Proposals received from Scheduled Caste (SC)/ Scheduled Tribe (ST) promoters holding at least 51% stake in the entity, only will be treated as proposals under SC/ST category.
Eligibility criteria
(a) Net worth:
The combined net worth of the applicant shall not be less than 1.5 times of grants-in-aid sought under the scheme.
Provided that in case of proposal from Difficult Areas, applicant(s) of SC/ST category, FPOs and SHGs, combined net worth shall not be less than grants-in-aid sought under the Scheme.
Pattern of Assistance
(a) Grants-in-aid will be @35% of eligible project cost for projects in General Areas and @50% of eligible project cost for projects in Difficult Areas as well as for projects of SC/ST, FPOs and SHGs subject to maximum of Rs.10 crore.
(b) No upward revision, for any reason whatsoever, in approved grants-in-aid will be considered.
(c) In case of proposals requesting for downward revision of eligible project cost on account of dropping of any of the approved components, the grants-in-aid/subsidy will be reduced in proportion to the reduction in the eligible project cost. Such cases shall be placed before the PAC for consideration.
(d) The expenditure incurred after the date of issue of Expression of Interest and before the date of approval of the project shall be considered, only if the project has been accorded final approval. The actual expenditure incurred from term loan account and personal equity account of the project shall be verified from the invoices and bank statement.
