The Scheme for Creation of Infrastructure for Agro Processing Clusters

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Agro processing cluster mofpi – The Ministry has formulated the Scheme for Creation of Infrastructure for Agro Processing Clusters as a sub-scheme of Central Sector Scheme – “PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY)” subsidy for mega food processing unit

The scheme aims at development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach. The scheme is to be implemented in area of horticulture / agriculture production identified through a mapping exercise. These clusters will help in reducing the wastage of the surplus produce and add value to the horticultural / agricultural produce which will result in increase of income of the farmers and create employment at the local level- agro processing cluster mofpi

Components of the Scheme:

Basic enabling infrastructure: It will include site development including 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 etc

Core infrastructure: The common facilities will be based on the needs 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, other common processing facilities, etc

Pattern of Assistance

The Scheme envisages grants-in-aid @ 35% of eligible project cost in general areas and @50% of eligible project cost in the North East States including Sikkim and difficult areas namely Himalayan States (i.e. Himachal Pradesh, Jammu & Kashmir and Uttarakhand), State notified ITDP areas & Islands of Union Territories of Lakshadweep and Andaman & Incobar Islands subject to max. of Rs. 10.00 crore per project

Release of Funds:

1. First installment of 35% of the total approved grant will be released to the PEA in the designated Bank account after incurring an expenditure of 35% of the bank term loan and 35% PEA contribution / equity on eligible project cost and submission of documents
2. Second installment of 40% of the total approved grant will be released to the PEA in the designated Bank account after incurring an expenditure of 75% of the bank term loan and 75% of PEA contribution / equity on eligible project cost and submission of the documents:
3. Third installment of 15% of the approved grant will be released to PEA in the designated Bank account after incurring an expenditure of 90% of the bank term loan and 90% of PEA’s contribution / equity on eligible project cost and submission of the documents:
4. Fourth & final installment of 10% of the approved grant will be released to PEA in the designated Bank account on completion of the project and submission of documents

The common facilities will be based on the needs 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, other common processing facilities, etc The common facilities will be based on the needs 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, other common processing facilities, etc

The common facilities will be based on the needs 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, other common processing facilities, etc vThe common facilities will be based on the needs 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, other common processing facilities, etc

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