HIGHLIGHTS OF THE UNION BUDGET 2023-24

PART A

  • Seven priorities of the budget ‘Saptarishi’ are inclusive development, reaching the last mile, infrastructure and investment, unleashing the potential, green growth, youth power and financial sector.
  • Atmanirbhar Clean Plant Program with an outlay of ₹2200 crore to be launched to boost availability of disease-free, quality planting material for high value horticultural crops.
  • 157 new nursing colleges to be established in co-location with the existing 157 medical colleges established since 2014.

Centre to recruit 38,800 teachers and support staff for the 740 Eklavya Model Residential Schools, serving 3.5 lakh tribal students over the next three years.

Outlay for PM Awas Yojana is being enhanced by 66% to over Rs. 79,000 crore.

Capital outlay of Rs. 2.40 lakh crore has been provided for the Railways, which is the highest ever outlay and about nine times the outlay made in 2013-14.

Urban Infrastructure Development Fund (UIDF) will be established through use of priority Sector Lending shortfall, which will be managed by the national Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.

  • Entity DigiLocker to be setup for use by MSMEs, large business and charitable trusts to store and share documents online securely.
  • 100 labs to be setup for 5G services based application development to realize a new range of opportunities, business models, and employment potential. 

500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme to be established for promoting circular economy at total investment of Rs 10,000 crore. 5 per cent compressed biogas mandate to be introduced for all organizations marketing natural and bio gas.

Centre to facilitate one crore farmers to adopt natural farming over the next three years. For this, 10,000 Bio-Input Resource Centres to be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.

Pradhan Mantri Kaushal Vikas Yojana 4.0, to be launched to skill lakhs of youth within the next three years covering new age courses for Industry 4.0 like coding, AI, robotics, mechatronics, IOT, 3D printing, drones, and soft skills.

30 Skill India International Centres to be set up across different States to skill youth for international opportunities.

Revamped credit guarantee scheme for MSMEs to take effect from 1st April 2023 through infusion of Rs 9,000 crore in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore and also reduce the cost of the credit by about 1 per cent.

Central Processing Centre to be setup for faster response to companies through centralized handling of various forms filed with field offices under the Companies Act.

The maximum deposit limit for Senior Citizen Savings Scheme to be enhanced from Rs 15 lakh to Rs 30 lakh.

Targeted Fiscal Deficit to be below 4.5% by 2025-26.

  • Agriculture Accelerator Fund to be set-up to encourage agri-startups by young entrepreneurs in rural areas.
  • To make India a global hub for ‘Shree Anna’, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level.
  • ₹20 lakh crore agricultural credit targeted at animal husbandry, dairy and fisheries
  • A new sub-scheme of PM Matsya Sampada Yojana with targeted investment of ₹6,000 crore to be launched to further enable activities of fishermen, fish vendors, and micro & small enterprises, improve value chain efficiencies, and expand the market.
  • Digital public infrastructure for agriculture to be built as an open source, open standard and inter operable public good to enable inclusive farmer centric solutions and support for growth of agri-tech industry and start-ups.
  • Computerisation of 63,000 Primary Agricultural Credit Societies (PACS) with an investment of ₹2,516 crore initiated.
  • Massive decentralised storage capacity to be set up to help farmers store their produce and realize remunerative prices through sale at appropriate times.
  • Sickle Cell Anaemia elimination mission to be launched.
  • Joint public and Private Medical research to be encouraged via select ICMR labs for encouraging collaborative research and innovation.
  • New Programme to promote research in Pharmaceuticals to be launched.

Rs. 10 lakh crore capital investment, a steep increase of 33% for third year in a row, to enhance growth potential and job creation, crowd-in private investments, and provide a cushion against global headwinds.

Aspirational Blocks Programme covering 500 blocks launched for saturation of essential government services across multiple domains such as health, nutrition, education, agriculture, water resources, financial inclusion, skill development, and basic infrastructure.

Rs. 15,000 crore for implementation of Pradhan Mantri PVTG Development Mission over the next three years under the Development Action Plan for the Scheduled Tribes.

Investment of Rs. 75,000 crore, including Rs. 15,000 crore from private sources, for one hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors.

New Infrastructure Finance Secretariat established to enhance opportunities for private investment in infrastructure.

District Institutes of Education and Training to be developed as vibrant institutes of excellence for Teachers’ Training.

A National Digital Library for Children and Adolescents to be set-up for facilitating availability of quality books across geographies, languages, genres and levels, and device agnostic accessibility.

Rs. 5,300 crore to be given as central assistance to Upper Bhadra Project to provide sustainable micro irrigation and filling up of surface tanks for drinking water.

·‘Bharat Shared Repository of Inscriptions’ to be set up in a digital epigraphy museum, with digitization of one lakh ancient inscriptions in the first stage.

‘Effective Capital Expenditure’ of Centre to be Rs. 13.7 lakh crore.

Continuation of 50-year interest free loan to state governments for one more year to spur investment in infrastructure and to incentivize them for complementary policy actions.

Encouragement to states and cities to undertake urban planning reforms and actions to transform our cities into ‘sustainable cities of tomorrow’.

Transition from manhole to machine-hole mode by enabling all cities and towns to undertake 100 percent mechanical desludging of septic tanks and sewers.

iGOT Karmayogi, an integrated online training platform, launched to provide continuous learning opportunities for lakhs ofgovernment employees to upgrade their skills and facilitate people-centricapproach.

More than 39,000 compliances reduced and more than 3,400 legal provisions decriminalized to enhance Ease Of Doing Business.

Jan Vishwas Bill to amend 42 Central Acts have been introduced to further trust-based governance.

Three centres of excellence for Artificial Intelligence to be set-up in top educational institutions to realise the vision of Make AI in India and Make AI work for India”.

National Data Governance Policy to be brought out to unleash innovation and research by start-ups and academia.

One stop solution for reconciliation and updation of identity and address of individuals to be established using DigiLocker service and Aadhaar as foundational identity.

PAN will be used as the common identifier for all digital systems of specified government agencies to bring in Ease of Doing Business.

95 per cent of the forfeited amount relating to bid or performance security, will be returned to MSME’s by government and government undertakings in cases the MSME’s failed to execute contracts during Covid period.

Result Based Financing to better allocate scarce resources for competing development needs.

Phase-3 of the E-Courts project to be launched with an outlay of Rs. 7,000 crore for efficient administration of justice.

  • R & D grant for Lab Grown Diamonds (LGD) sector to encourage indigenous production of LGD seeds and machines and to reduce import dependency.
  • Annual production of 5 MMT under Green Hydrogen Mission to be targeted by 2030 to facilitate transition of the economy to low carbon intensity and to reduce dependence on fossil fuel imports.
  • ₹35000 crore outlay for energy security, energy transition and net zero objectives.
  • Battery energy storage systems to be promoted to steer the economy on the sustainable development path.
  • 20,700 crore outlay provided for renewable energy grid integration and evacuation from Ladakh.

PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM) to be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.

‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’, MISHTI, to be taken up for mangrove plantation along the coastline and on salt pan lands, through convergence between MGNREGS, CAMPA Fund and other sources.

Green Credit Programme to be notified under the Environment (Protection) Act to incentivize and mobilize additional resources for environmentally sustainable and responsive actions.

Amrit Dharohar scheme to be implemented over the next three years to encourage optimal use of wetlands, enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities.

unified Skill India Digital platform to be launched for enabling demand-based formal skilling, linking with employers including MSMEs, and facilitating access to entrepreneurship schemes.

Direct Benefit Transfer under a pan-India National Apprenticeship Promotion Scheme to be rolled out to provide stipend support to 47 lakh youth in three years.

At least 50 tourist destinations to be selected through challenge mode; to be developed as a complete package for domestic and foreign tourists.

Sector specific skilling and entrepreneurship development to be dovetailed to achieve the objectives of the ‘Dekho Apna Desh’ initiative.

Tourism infrastructure and amenities to be facilitated in border villages through the Vibrant Villages Programme.

States to be encouraged to set up a Unity Mall for promotion and sale of their own and also all others states’ ODOPs (One District, One Product), GI products and handicrafts.

National Financial Information Registry to be set up to serve as the central repository of financial and ancillary information for facilitating efficient flow of credit, promoting financial inclusion, and fostering financial stability. A new legislative framework to be designed in consultation with RBI to govern this credit public infrastructure.

Financial sector regulators to carry out a comprehensive review of existing regulations in consultation with public and regulated entities. Time limits to decide the applications under various regulations would also be laid down.

To enhance business activities in GIFT IFSC, the following measures to be taken. 

· Delegating powers under the SEZ Act to IFSCA to avoid dual regulation.

· Setting up a single window IT system for registration and approval from IFSCA, SEZ authorities, GSTN, RBI, SEBI and IRDAI.

· Permitting acquisition financing by IFSC Banking Units of foreign bank.

· Establishing a subsidiary of EXIM Bank for trade re-financing.

· Amending IFSCA Act for statutory provisions for arbitration, ancillary services, and avoiding dual regulation under SEZ Act

· Recognizing offshore derivative instruments as valid contracts.

· Amendments proposed to the Banking Regulation Act, the Banking Companies Act and the Reserve of India Act to improve bank governance and enhance investors’ protection.

· Countries looking for digital continuity solutions would be facilitated for setting up of their Data Embassies in GIFT IFSC.

· SEBI to be empowered to develop, regulate, maintain and enforce norms and standards for education in the National Institute of Securities Markets and to recognize award of degrees, diplomas and certificates.

· Integrated IT portal to be established to enable investors to easily reclaim the unclaimed shares and unpaid dividends from the Investor Education and Protection Fund Authority.

· To commemorate Azadi Ka Amrit Mahotsav, a one-time new small savings scheme, Mahila Samman Savings Certificate to be launched. It will offer deposit facility upto Rs 2 lakh in the name of women or girls for tenure of 2 years (up to March 2025) at fixed interest rate of 7.5 per cent with partial withdrawal option.

· The maximum deposit limit for Monthly Income Account Scheme to be enhanced from Rs 4.5 lakh to Rs 9 lakh for single account and from Rs 9 lakh to Rs 15 lakh for joint account.

· The entire fifty-year interest free loan to states to be spent on capital expenditure within 2023-24. Part of the loan is conditional on States increasing actual Capital expenditure and parts of outlay will be linked to States undertaking specific loans.

· Fiscal Deficit of 3.5% of GSDP allowed for States of which 0.5% is tied to Power sector reforms.

· Revised Estimates 2022-23:

  •  
  • The total receipts other than borrowings is Rs 24.3 lakh crore, of which the net tax receipts are Rs 20.9 lakh crore.
  • The total expenditure is Rs 41.9 lakh crore, of which the capital expenditure is about Rs 7.3 lakh crore.
  • The fiscal deficit is 6.4 per cent of GDP, adhering to the Budget Estimate.

· Budget Estimates 2023-24:

  • The total receipts other than borrowings is estimated at Rs 27.2 lakh crore and the total expenditure is estimated at Rs 45 lakh crore.
  • The net tax receipts are estimated at Rs 23.3 lakh crore.
  • The fiscal deficit is estimated to be 5.9 per cent of GDP.
  • To finance the fiscal deficit in 2023-24, the net market borrowings from dated securities are estimated at Rs 11.8 lakh crore.
  • The gross market borrowings are estimated at Rs 15.4 lakh crore.

Guidelines For Implementation Of Biomass Programme

Subsidy For Biomass Briquetting Plant In India

“Scheme to Support Promotion of Manufacturing of Briquettes & Pellets and Biomass (Non-Bagasse) Based Cogeneration in Industries in the Country”- subsidy for biomass briquetting plant in india

Scheme to Support Promotion of Manufacturing of Briquettes & Pellets and Biomass (Non-Bagasse) Based Cogeneration in Industries in the Country (Up to March 2026)”. It may also be referred as “Biomass Programme”.

the Biomass Programme is to support setting up of Biomass Briquette/Pellet manufacturing plants and to support Biomass (nonbagasse) based cogeneration projects in Industries in the country. The broader objectives of the scheme are to reduce stubble burning by utilizing surplus agricultural residue, to provide additional source of income to farmers through sale of surplus agro residue and to enable better environmental practices and reduce pollution.

Funding Pattern:

Standard CFA pattern: CFA available under the programme is as follows:

Project TypeCFA
Briquette / Pellet Manufacturing plantsRs. 9 Lakh per MTPH (metric ton/hour) manufacturing capacity (maximum CFA of Rs 45 Lakhs per plant)
Biomass (Non-bagasse ) cogeneration projectsRs. 40 Lakhs/MW (on Installed Capacity) (maximum CFA of Rs. 5 Crores per project)

Service Charges To Implementing/ Inspection Agencies:

  1. Implementing agency (IA) shall be provided a service charge @1% of total CFA for examining and processing the CFA applications received in BioURJA portal and forwarding suitable applications to Ministry. Indian Renewable Energy Development Agency Limited (IREDA) shall be the implementing agency. However the Ministry of New & Renewable Energy (MNRE) may change the IA by way of a suitable notification.
  2.   Performance Inspection Agency shall be provided service charge of:

(a) Rs. 25,000 per metric ton per hour (maximum Rs. 1 Lakh per project) towards monitoring of implementation progress, performance inspection and verification of production record and post installation monitoring of Briquette/Pellet manufacturing plants, and

 (b) Rs.1 Lakh/MW (Maximum Rs.5 Lakh per project) as incentive or service charge towards implementation progress, performance inspection and verification of generation record and post installation monitoring of Biomass (non-bagasse) cogeneration projects. subsidy for biomass briquetting plant in india

Waste to Energy Programme  

The programme is to support the setting up of Waste to Energy projects for generation of Biogas/ BioCNG/ Power/ producer or syngas from urban, industrial and agricultural wastes/residues- Waste to Energy scheme in India

FUNDING PATTERN

Standard CFA pattern: Standard pattern of CFA for grant of ‘In-principal Approval’ to Waste to Energy projects under the programme is as follows:

S.NoType of projectStandard CFA rate @ installed capacity of the plant
1.BiogasRs 0.25 Cr per 12000cum/day (maximum CFA of Rs. 5.0 Cr/project)
2.BioCNG / Enriched Biogas/ Compressed Bio GasRs 4.0 Cr per 4800 kg/day (for BioCNG generation from new biogas plant) -Rs 3.0 Cr per 4800 kg/day (for BioCNG generation from existing Biogas plant#) -Maximum CFA of Rs. 10.0 Cr/project for both cases
3.Power (based on Biogas)Rs 0.75 Cr/MW (for power generation from new biogas plant) -Rs 0.5 Cr /MW (for power generation from existing Biogas plant#) -Maximum CFA of Rs. 5.0 Cr/project for both cases
4.Power based on bio & agro-industrial waste (other than MSW through incineration process).Rs 0.4 Cr/MW (maximum CFA of Rs. 5.0 Cr/project)
5.Biomass Gasifier for electricity/thermal applicationsRs. 2,500 per kWe with dual fuel engines for electrical application o Rs. 15,000 per kWe with 100% gas engines for electrical application o Rs. 2 lakh per 300 kWth for thermal applications.

Special CFA Pattern

Special Category States: In case the Waste to Energy plants are set up in Special Category States (NE Region, Sikkim, Himachal Pradesh and Uttarakhand), Jammu & Kashmir, Ladakh, Lakshadweep and Andaman & Nicobar Islands, the eligible CFA would be 20% higher than Standard CFA pattern

Biomethanation Plants Set Up In Registered Gaushala/Shelter:

Biogas/BioCNG/Power (biogas based) generation plants based on cattle dung as main feedstock set up by Gaushalas independently or through joint ventures/partnerships will be eligible for 20% higher CFA than Standard CFA pattern

Continuation Of New Agriculture Infrastructure Scheme (AMI)

There is an announcement of NABARD The  AGRICULTURAL MARKETING INFRASTRUCTURE (AMI) scheme is extended till  31st march 2023-NABARD subsidy for storage infrastructure

ELIGIBLE MARKETING INFRASTRUCTURE:

Primary processing for the purpose of this sub scheme relates to value addition to a raw agricultural produce which, after processing, does not result in change of product form. Primary processing for which subsidy under AMI is available are those such as cleaning, cutting, de-podding, de-cortication, dehusking, de-sheller, Grain cleaner, specific gravity separator, mini rice huller, drying equipments (solar/normal), bleaching, grading, sorting, packing/bag stitching, labelling, waxing, ripening, chilling, pasteurization, homogenization, freezing, refrigeration and other value addition activities etc. Further, Mini Oil expeller for extraction of edible vegetable oil (as per FSSAI but without refining) from indigenous oilseeds (viz. Mustard seed, Sesame seed, Ground nut, Linseed, Mahua, Safflower, Nigerseed Oil, Coconut, Almond and Olive only) and Mini Dal mill for primary processing of pulses, which includes cleaning, grading, sorting, splitting, packaging and labelling for promoting direct marketing, are also eligible. The subsidy for such projects is restricted to the construction of sheds and oil expellers operated up to the power of 7.5 Horse Power (HP).

ELIGIBLE BENEFICIARIES:

For creation of storage infrastructure (Capacity 50 – 5000 MTs) and Non- storage infrastructure:

Individuals, Group of farmers / growers, FPOs/FPCs registered under respective companies Act/cooperatives societies Act/ societies registration Act (with minimum 50 number of farmer members); Partnership/ Proprietary firms, Companies, Corporations; NonGovernment Organizations (NGOs), Self Help Groups (SHGs); Cooperatives, Cooperative Marketing Federations; Autonomous Bodies of the Government, Local Bodies, Panchayats; State agencies including State Government Departments and autonomous organization / State owned corporations such as Agricultural Produce Market Committees & Marketing Boards, State Warehousing Corporations, State Civil Supplies Corporations etc.

For creation of storage infrastructure (Capacity 50 – 10,000 MTs):

State agencies including State Government Departments and autonomous organization / State owned corporations such as Agricultural Produce Market Committees & Marketing Boards, State Warehousing Corporations, State Civil Supplies Corporations etc.

For development/upgradation of farmer-consumer market and Rural Haats/RPMs:

State Govt. or State Govt. agencies nominated by State Govt. for village haat owned/managed by Panchayats, APMCs/RMCs, FPOs/FPCs registered under respective companies Act/cooperatives societies Act/ societies registration Act (with minimum 50 number of farmer members), State Agencies, farmers, Individual, Trustee etc.

SUBSIDY PATTERN:

The sub scheme envisages back-ended capital subsidy for investment in eligible storage, marketing infrastructure projects is as under:

 FOR STORAGE INFRASTRUCTURE PROJECTS:

 Capital cost of the project for the purpose of subsidy will be calculated on the project cost as appraised by financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower subject to the subsidy ceiling per MT as well as overall ceiling given below:

CategoryRate of Subsidy (on capital cost)Subsidy ceiling
  50- 1000 MT in Rs./MTMore than 1000 MT and up to 10,000 (in Rs./MT)Maximum ceiling (Rs. Lakhs)
North Eastern States, Sikkim, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* areas33.33%1333.201333.20133.20
In other Areas    
For Registered FPOs, Panchayats, Women, Scheduled Caste (SC)/ Scheduled Tribe (ST) entrepreneurs or their cooperatives**/ Self-help groups33.33%1166.551000.00100.00
For all Other categories of beneficiaries25%875/-750/-75.00

FOR INFRASTRUCTURE PROJECTS OTHER THAN STORAGE (NONSTORAGE)

INFRASTRUCTURE INCLUDING FARMER-CONSUMERS MARKET AND DEVELOPMENT AND UPGRADATION OF RURAL HAATS/RPMs into GrAMs :

Capital cost of the project for the purpose of subsidy will be calculated on the Project cost as appraised by financial institution or actual cost of eligible components as certified by a Chartered Accountant, whichever is lower.

 Rate of Subsidy (on capital cost)Maximum Subsidy Ceiling # (Rs. in lakhs)
North Eastern States, Sikkim, States of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, UTs of Andaman & Nicobar and Lakshadweep Islands, hilly* and tribal areas33.33%30.00 Lakhs
In other Areas  
For Registered FPOs, Panchayati Raj Institutions, Women farmers/ entrepreneurs, Scheduled Caste(SC)/ Scheduled Tribe (ST) entrepreneurs and their cooperatives**33.33%30.00 Lakhs
For all Other categories of beneficiaries25%25.00 Lakhs
What Is AMI Scheme

The Agricultural Marketing Infrastructure (AMI) sub-scheme of ISAM the scheme is for farmers welfare In which eligible beneficiaries will get for storage infrastructure project

COMPREHENSIVE HANDICRAFTS CLUSTER DEVELOPMENT SCHEME (CHCDS)

COMPREHENSIVE HANDICRAFTS CLUSTER DEVELOPMENT SCHEME

OBJECTIVES AND STRATEGY

The objective is to develop these two clusters with world-class infrastructure. The guiding principle behind the design of clusters would be to create world-class infrastructure that caters to the business needs of the local artisans & SMEs to boost production and export. In brief, the main objective of setting up these clusters is to assist the artisans & entrepreneurs to set up world-class units with modern infrastructure, latest technology, and adequate training and HRD inputs,-Government Schemes for Handicrafts

Targeted Clusters

Two clusters i.e Moradabad (Uttar Pradesh) and Narasapur (Andhra Pradesh) with more than 20000 artisans have been identified for scaling up infrastructure and production base.

Project Components

The coverage of the proposed project will be need based of the given cluster and would include the components that are necessary for meeting the objectives as stated above. Detailed list of the components that will be addressed through the proposed project are discussed below:

 Technology Upgradation:

Modernization/ Upgradation of tools and machineries, processing and other methods of manufacturing. To assist entrepreneurs/ exporters to modernize/set up world class facility/ units with latest technology, which helps to compete in the growing competitive world market, there shall be a support from Government by way of one time grant in the ratio of 30:70, wherein Government share shall be 30% with a maximum assistance of Rs. 60 lakhs per unit. This would facilitate flow of latest technology.

Product Diversification:

Upgrading and diversifying the present product range to meet the needs of contemporary market requirements through design development, quality improvement, etc.

 Raw Material Bank:

Establishment of Raw Material Bank for continuous availability of Quality & Graded Raw material.

Common Facility centre (CFC) :

CFC will comprise State of the art machines which normally an individual can not buy on his own. Such facility would be open to individual artisans and SME’s. This facility would provide access to High tech facility at reasonable price as user has to pay only operating expenses.

Resource centre:

Establishment of Resource centre as one point information centre in a choosen craft. Such facility would act as an arsenal in the hands of artisans. They can approach the resource centre for any problem in a particular craft.

 Market Development:

Targeted efforts to enhance the share of the cluster products in domestic as well as export markets through brand promotion, exhibitions, buyer seller meets, retail space, warehouses, E-Commerce, etc.

 Forward & Backward Linkages:

Provision of need based infrastructure in the form of Handicrafts parks, common facility centres, testing labs, design studios, R&D, TQM, etc. 6.1.8 Human Resource & Skill Development: Provision of Training, Recruitment Center and consultancy. Upgrading and imparting need based technical skills so as to improve quality and productivity, apart from coverage under entrepreneurship development programs and other soft skills. An SPV of Artisans’ Federations shall be eligible for executing this component.

Social Security:

 Covering the artisans in the cluster under various social security schemes, such as group insurance, small savings, financial institutions, etc. Civic amenities with in the Handicrafts Park

 Physical Infrastructure:

Land development, roads connectivity, water treatment & supply, power supply, housing-cum-work sheds and other common buildings, Tele-communication network, sewerage, Effluent Treatment Plant & Solid Waste Management, etc. (Civic amenities mentioned above will be restricted to Handicrafts park).

Export & Marketing:

Provision of Clearing facility, Customs office and Trade Center, Exhibition hall, etc.

Margin Money for Working Capital:

 Margin money for working capital for the artisans is an essential input as it provides sufficient leverage to the artisans to complete one cycle of production-cum-marketing in a period of about 3 months. Provision of margin money @ Rs.4000/- per artisan of the federation may be kept (in line with the ongoing AHVY Scheme)

Funding pattern

Establishment of Baseline data:

Funds to the tune of 3% (max.) of project cost shall be earmarked for establishing baseline data / DPR against which performance can be compared at the end of the project.

Funds in the pattern as in table below would be released in 3 installments

  1. 1st installment of 40% as advance on SPV acquiring land.
  2.  2nd installment of another 40% on utilization of 2/3 of first installment.
  3. Balance as 3rd and final installment as reimbursement.
Soft skills such as skill development Training, Product Development workshop, etc.I year – 100% II year – 90% III year – 75% IV year – 75%Rs 10 crores/ projectNil 10% 25% 25%
Common production related Infrastructure which are artisan centric such as CFC, Work shed, etc100%Rs 20 crores/ projectLand and recurring expenditu re
Other commercial infrastructure – such Gas pipe line, etc75%Rs 20 crores/ project25% and recurring expenditu re
Facility Centers for Exporters/entrepreneu rs30%Rs. 2 crores/ facility centre/Entre preneur70%

SCHEME FOR COLD CHAIN

SCHEME FOR COLD CHAIN INFRASTRUCTURE

Based on further feedback and experience of implementation of the scheme, the guidelines are further revised with immediate effect. These revised guidelines will be applicable to Expression of Interest (EOI) issued by the Ministry for taking up new Integrated Scheme For COLD CHAIN Projects prospectively.

Objective

The objective of the scheme is to provide integrated cold chain, preservation and value addition infrastructure facilities without any break, from the farm gate to the consumer in order to reduce post-harvest losses of horticulture and non-horticulture agri-produce. This will enable linking groups of producers to processors and market through a well-equipped supply chain and cold chain, thereby ensuring remunerative prices to farmers and year-round availability of food products to consumers.

Eligible organizations/entities Scheme For COLD CHAIN

Integrated cold chain and value addition infrastructure projects can be set up by Partnership/Proprietorship Firms, Companies, Corporations, Cooperatives, Self Help Groups (SHGs),Farmer Producer Organizations (FPOs), NGOs, Central/State PSUs, etc. with business interest in cold chain solutions and also by those who manage supply chain.

Eligible facilities for calculation of grant Scheme For COLD CHAIN

Assistance under the scheme can be availed for creation of the following facilities:

  • Integrated Pack-house (with mechanized sorting & grading line/ packing line/ waxing line/ staging cold rooms, etc.)
  • Ripening Chamber(s)
  • Cold Storage Unit(s) [Associated with value addition]
  • Controlled Atmosphere (CA) storage [Associated with value addition]
  • Frozen Storage/Deep freezers [Associated with value addition]
  • IQF line, Tunnel Freezer, Spiral Freezer, Blast Freezer, Plate Freezer
  • Vacuum Freeze Drying
  • Milk Chilling / Bulk Milk Cooling/ Automatic Milk Collection Unit/ Milk Processing Unit (including packing) for which temperature control is necessary during some part of the processing. (Maximum 50 nos. of Milk Chilling or Bulk Milk Cooling or Automatic Milk Collection Unit to be assisted per project)
  • Poultry/Meat/Marine/Fishery Processing Unit
  • Packaging line for chilled /frozen/temperature controlled products
  • Food Irradiation unit
  • Refrigerated/ Insulated transport
  • (m)Pre Cooling Unit(s)
  • Mobile pre-coolers
  • Retail refrigerated carts, temperature controlled solar powered retail carts (maximum 10 numbers to be assisted per project)
  • Reefer boats (maximum 10 numbers to be assisted per project)
  • Refrigerated Containers including multi-modal container units
  • Renewable/ alternate energy technologies (solar, bio-mass, wind etc.) for the project. [maximum permissible cost is ₹35 lakh, as per MIDH norms]
  • Accessories/support infrastructure/ utilities such as fixed racking system in Cold/CA storage, fork lifts, reach trucks, bins, insulated fish boxes, pallets, dock levellers, mezzanine flooring, ETP, boiler, CIP unit, Depodder, Peeler, Slicer/Dicer, Blancher, sorting/grading line, etc.
  • In-house product testing laboratory
  • Any other modern technology for temperature controlled storage, processing, value addition and preservation infrastructure as may be decided by Inter Ministerial Approval Committee (IMAC)
  • Toilets, Septic tank, drainage, etc.

Pattern of assistance: – The scheme will have two types of pattern of financial assistance: –

  • For storage infrastructure including Pack House and Pre cooling unit, ripening chamber and transport infrastructure, grant-in-aid @ 35% for General Areas and @ 50% for North East States, Himalayan States, Islands & ITDP Areas, of the total cost of plant & machinery and technical civil works will be provided.
  • For value addition and processing infrastructure including frozen storage/ deep freezers associated and integral to the processing, grant-in-aid @ 50% for General Areas and @ 75% for North East States, Himalayan States, Islands & ITDP Areas, will be provided.
  • For irradiation facilities grant-in-aid will be provided @ 50% for General Areas and @ 75% for North East States, Himalayan States, Islands & ITDP Areas.
operation green scheme

OPERATIONS GREEN – LONG TERM INCENTIVES 

Component: –

  1. Integrated value chain development: – Projects will be implemented in identified production clusters for each crop for development of value chain

The component will have following sub – components  

  1. Formation of new FPOs in the cluster and/or training / workshop of existing farmers /FPOs

Eligible cost in this regard will be as per SFAC norms, subject to maximum limit of 5% of total eligible project cost. PIA may take support of SFAC/NABARD/Universities/ Institutions for capacity building and strengthening of FPOs

  •  Post –harvest processing facilities: –
  • Appropriate storage such as staging cold room / dry storage/ cold storage/ frozen storage/ CA storage
  • Integrated pack house and machinery & equipment for primary processing/ value addition such as cutting, dicing, slicing, pickling, pulping etc. with mechanized sorting & grading line/ packing line/ waxing line  
  • Secondary processing line including IQF, Blast Freezer etc.;
  • Quality test equipment for captive
  • Agri- Logistics
  • Controlled temperature/ ventilated vehicle with or without raking
  • Marketing infrastructure (anywhere in the country not necessarily in identified production clusters)

Retail chain of outlets for perishable products with facilities such as frozen storage / cold room / cold storage / deep freezers / refrigerated display cabinet/ chillers/ packing/ packaging/ ripening chamber etc.

            Eligible project: –

  1. 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 from difficult areas, applicant SC/ST category FPOs & SHGs, combined net worth should not be less then grant in aid sought under the scheme

  • Provided that in further case of SC/ST the sum net worth of SC / ST category the worth of SC/ST
  •  Term loan from the bank for an amount not less than 20 % of the total project cost in respect of proposals from General Areas. In case of proposals from difficult areas or proposals from SC/ST or farmer producer organization or self-help group, term amount shall not less than 10% of the total project cost 
  • A detailed appraisal notes from schedule commercial bank specific to the proposals
  • Infusion of equity of at least 20% of the total project cost for proposals from general areas
  • Only one application will be accepted from an entity against expression of interest issued under the scheme
  • Expansion / upgradation of existing facilities will not be allowed
  • No second proposals from an entity or promoter of entity shall not be eligible
  • Entities or promoter of entity shall not be eligible for financial assistance for more than two projects during a period of 10 years

PATTERN OF ASSISTANCE: –

  • Integrated value chain development project: Maximum grant-in aid would be 15 cr project
  • Standalone Post Harvest Infrastructure Projects: Maximum grant-in aid would be 10 cr project
  • Grants in aid will be @35% in eligible project cost for projects general areas & 50 % of eligible project in projects difficult areas as well as for project of SC/ST, FPO & SHG
  • No upward revision, for any reason whatsoever, in approved in grant n aid will be considered
  • In case of proposals requesting for dropping of any of the approved components, the proportionate grant in aid
  • No grant in aid shall be payable on any expenditure towards of eligible project component of the project of any nature whatsoever, made before issuance of approval letter of ministry. The same shall be verifiable from bank statement/invoices to be submitted at the request for release of various installment of grant in aid        
  • Grant in aid will be considered in respect of eligible project component
  • Proposals received from entities where SC/ST hold at least 51% stake will be treated as SC/ST proposals 
  • If there is any reduction in stake of SC/ST below 51% during implementation of the project, such project shall be cancelled & grant in aid release, if any shall be ordered to be recovered with 10% annual interest
  • Grant in aid will be released subject to availability of funds                                                                                                           
PLI scheme for miliet

Guidelines on Production Linked Incentive Scheme for Millet Based Products

PLI Scheme for Millet Based Products Objective

 The objectives of the Production Linked Incentive Scheme for Millet Based Products (PLISMBP) are to increase usage of millets in food products and promote its value addition. These objectives are sought to be achieved through incentivizing manufacture of selected millet-based products and their sale in domestic and export markets -PLI Scheme for Millet Based Products

Note : Last date for submission of application is 29/07/2022 upto 5:00pm

Eligibility

An applicant shall have total sale of all food products above minimum sales in the Base Year. 

  • Udyam Registration Certificate is mandatory for MSME Applicants.
  • Incentive under the scheme shall be provided to the Applicants engaged in manufacturing or intending to manufacture eligible products in India & sales of such products.
  • Applicant shall be required to achieve minimum CAGR of 10% on sales of the eligible products from the base year for grant of incentive.
  • The Applicant may include eligible products which it is not manufacturing presently but intends to manufacture during the tenure of the scheme.
  • The entire chain of manufacturing process, including primary processing, of eligible food products starting from raw materials to finished product covered in the Application for incentive under the Scheme is required to take place in India.
  • The name of Applicant /Promoters should not appear in the Suit/Non-Suit Filed Cases (Willful Defaulters 25 lacs and above, defaulter? 1 crore and above) List of CIBIL and SEBI Debarred List as on the date of application.

Incentive

 The incentive payable for the selected applicant for a particular year shall be computed as follows: –

  • Incentive for approved eligible product= Incremental Sales of approved Product x corresponding rate of incentive Total incentive payable to the selected applicant shall be aggregated for all the approved products.
  • Incentive is payable from the year of selection up to the end of the Scheme period.
  • The assessment of incremental sales shall be based on statutory filings with Government Departments / Agencies and audit reports and other documents as required by the PMA from time to time, for processing the claims.
  • Every package of eligible product shall disclose the percentage of the Millet ingredient by weight /volume on label and will be subject to compliance of the regulations specified by FSSAI.
  • The applicability of incentive would be based on % of Millet Content (which should be more than 15% by weight/volume) declared for a particular product at the time of application (Ref. Appendix C). During the Scheme period, Applicant may increase the millet content. However, decrease in millet content, for whatsoever reason, will not be permitted and in such case the approved product will be removed from the list of approved products for the purpose of incentive disbursement to the beneficiary. Mofpi may choose to get the necessary test done for checking the millet content in the eligible product (s), to ascertain the claim of the Selected Applicants.
  • Period shall be made only once, unless withdrawn, and no subsequent part claims shall be allowed for the said period.  Claims for disbursement of Incentive shall be filed by the Applicants within 8 months from the end of the financial year to which the claim pertains to.

APPENDIX A- INDICATIVE LIST OF ELIGIBLE MILLET BASED FOOD PRODUCTS

SR.NOPRODUCT CATEGORYMILLET BASED PRODUCTS COVERED
1Breakfast cereals and barsMuesli & breakfast cereal, puff, flakes granola, breakfast protein bars
2Bakery productMillet cookie, Cakes, Rusks
3Snacks / RTC & RTENoodles, Pasta, chips & crisps, Bread, Papad, Khakhra, Ice creams, extruded snacks, sweet & savour snacksNoodles, Pasta, chips & crisps, Bread, Papad, Khakhra, Ice creams, extruded snacks, sweet & savour snacks
4MixesDose, Idli, upma, Pongal & khichdi, Chakli mixes, Soup
5RTD BeveragesMillet based Instant Drink Mix (Powdered/ liquid

APPENDIX – B : ELIGIBLITY CRITERIA FOR DIFFERERNT CATEGORIES OF APPLICANTS

Category of ApplicantsMinimum Sales of All Food Products in 2020-21 (Rs Crore)
Large Entity250
MSME2

APPENDIX C: RATES OF INCENTIVE ON INCREMENTAL SALES OF ELIGIBLE PRODUCT

FINANCIAL YEARMILLET CONTENT MORE THAN 15% BY WEIGHT /VOLUME
2022-2310%
2023-2410%
2024-2510%
2025-269%
2026-278%
ParametersMax. MarksCriteriaMarksSupporting Documents required to be submitted by the Applicant
Average of Domestic Sales of all Food Products in last 3 years (FY2018-19 to FY2020-21) More than zero & upto Rs.100 cr  10Independent CA certificate or statutory auditor certificate  as per the format  
More than 100 Cr & upto Rs.250 cr20
More than Rs.250 Cr & upto Rs.500 cr30
More than 500 cr40
Average of Export Sales of all Food Products in last 3 years (FY2018-19 to FY2020-21)40More than zero and upto < 50 crore10
More than z50 crore & up to 150 crore20
More than 150 crore & up to 250 cror30
More than 250 crore40
Average Sale of eligible food products in last 3 years (FY2018-19 to FY2020-21)20More than zero & upto 10 Crore10
More than 10 crore & up to 25 crore15
More than z 25 crore20
  
_Strengthening of pharmaceutical Industry

Strengthening of pharmaceutical Industry

Objective

To strengthen the existing pharmaceutical clusters for their sustained growth by creating tangible assets as “common facilities”

Components of scheme

Assistance to pharmaceutical industries for common facility (APICF)

To strengthen the existing pharmaceutical clusters capacity for their sustained growth by creating common facilities

  • Pharmaceutical technology upgradation assistance scheme (PTUAS)

To facilitate micro, small medium pharma enterprise (MSMEs) of proven track record to meet national and international regulatory standards

  • Pharmaceutical & medical devices promotion & development scheme (PMPDS)

To facilitate growth and development of pharmaceutical & medical devices sectors through studies/survey reports, awareness program, creation of database and promotion of industry.

INCENTIVE UNDER THE SCHEME

The limit of incentive will be 70% of the approved project cost or Rs 20 cr., whichever is less, as per approval of SSC. In the case of Himalayan States and States in the North East Region, the grant-in-aid would be Rs. 20 Crore per Cluster or 90% of the project cost of the Common Infrastructure Facilities (CIF), whichever is less.

Up to maximum of 5% per annum (6% in case of units owned and managed by SC/STs) of interest subvention for loan component eligible under the scheme taken to the upper limit of Rs. 10 cr. For a maximum period of 3 years on reducing balance for sanctioned loans by any scheduled commercial banks/financial institutions, both in the Public and the Private Sector. Or Credit linked Capital subsidy of 10% on loan component eligible under the scheme. Maximum limit of loan will be Rs. 10.00 crore II. At least 50% of total sanctioned loan amount has to be on components eligible under the scheme for either interest subvention or capital subsidy, for approval of SSC. III. Loan proposals availing of benefit under this scheme will not be allowed to avail of benefits under any other technology up-gradation scheme of Government of India or State Governments or any other autonomous institutions/PSUs or Boards of either Central or State Government. IV. Minimum repayment period of the loan sanctioned for availing of the benefit under the scheme shall not be less than 3 years.

_SCHEME OF SETTING UP UP GRADATION OF FOOD TESTING LABORATORIES

SCHEME OF SETTING UP / UP GRADATION OF FOOD TESTING LABORATORIES

Eligible Items For Calculation Of Grant in aid

Equipment:

It Includes the equipment essential for the testing requirement of the food and food product being produced and manufactured in the catchment Area of the food testing laboratories

Technical Civil work and furniture and fixtures

It Includes only the component of civil work and furniture & Furniture’s essentials for installation and operationalization of the equipment

Eligible Entities

Any private organizations ( JV , Partnership , LLP )

Eligible Criteria

Term loan from the Bank for an amount not less than 20% of the total project cost in respect of proposals from General Areas. In case of proposals from Difficult Areas or proposals from SC/ST , term loan amount shall not be less than 10% of the total project cost.

Note: Difficult Area for proposals under this Scheme means North-Eastern States (including Sikkim), State of Uttarakhand, State of Himachal Pradesh, Union Territories of Jammu & Kashmir and Ladakh, State Notified ITDP areas and Islands (Union Territories of Andaman & Nicobar and Lakshadweep).

NON REFUNDABLE FEE: 20000 in favour of “ PAY AND ACCOUNTS OFFICERS , Ministry of Food Processing Industries, New Delhi”.

Provided that the non – refundable fee shall be Rs . 15000for applications from SC/ST

Pattern of Assistance

Grants-in-aid will be considered @50% for projects in General Areas and @70% for projects in Difficult Areas as well as for projects of SC/ST of eligible cost of project AND 2 % of the eligible cost of approved equipment or Rs.15lakh , whichever is lower towards TCW and furniture and fixtures

Private Organization / entities are eligible for grant-in-aid of

  1. 50%of the eligible cost of equipment and
  2. 2% of the Eligible cost of approved equipment or Rs. 15.00lakh , whichever is lower , toward technical civil work and Furniture & Fixtures

Eligible Entities

Any Private organization /entity (Including Joint Ventures / Public & Private Companies / Limited Liability Partnership, Corporate Entity / Proprietorship / partnership Entity) / Government organization intending to set up /upgrade its existing food testing laboratory