MP MSME Development Policy

This Policy shall come into effect from the date of notification.

This Policy will remain effective till the time it is replaced by the new policy.

MSMEs in the manufacturing sector which start commercial production  on or after the date of notification of the policy will be eligible to get  assistance under this Policy. Such manufacturing MSMEs which have  started commercial production on or after 01.07.2020 but before the date  of notification of this Policy and invested more than Rs. 10 crores & up  to Rs. 50 crores in the plant & machinery, will be eligible to receive  assistance under the earlier relevant policies. It is clarified that such units  will not be eligible for assistance/facilitation under this Policy.

For new manufacturing units, which will start production on or  after the date of notification of this Policy, the option of availing  facilities/assistances under the earlier incentive schemes will not be  available. However, the existing MSMEs in the manufacturing sector  undertaking expansion/diversification/technological upgradation during  the effective period of this Policy will be eligible for assistance/facilities  equivalent to a new industrial unit on the additional eligible investment  made by them, if the unit remains in the eligible MSME category after  such investment

Industrial Development Subsidy

  1. Industrial development subsidy will be provided as follows for a new industrial unit investing up to Rs. 10 crores in plant and machinery :-
  2. Industrial development subsidy to the new industrial units @ 40% on the eligible investment made by them in Plant & Machinery and building. This assistance shall be disbursed in 4 equal annual installments.
  3. The cost of building shall not be more than 100% of the cost of Plant and machinery for the purpose of calculating the assistance.
  • Additional Industrial Development Subsidy of 2% per year (for four years) for unit set up by women/SC/ST entrepreneur(s) or 2.5% per year (for four years) for unit set up by women entrepreneur(s) of SC/ST category; and
  • Additional Industrial Development Subsidy of 2% per year (for four years) to the industrial units for exporting more than 25% and upto 50% of their total sales

Financial Assistance for Infrastructure Development

  1. 50% of the expenditure on infrastructure development up to its premises, subject to a maximum of Rs. 25 lakhs shall be provided to a new industrial unit set up in private or undeveloped government land with a minimum investment of Rs. 1 crore and a maximum investment of Rs. 10 crores in plant and machinery. 50% assistance subject to a maximum of Rs. 1 crore each shall be provided to medium scale MSME units investing more than Rs. 10 crores in plant and machinery for developing power, water & road infrastructure
  2. 50% of the expenditure for setting up of Effluents Treatment Plant (ETP) by MSME units investing up to a maximum of Rs. 10 crores in plant and machinery, subject to a maximum assistance of Rs. 25 lakhs and 50% of the expenditure incurred on setting up of waste management, pollution control devices, health & safety standards and water conservation measures, subject to a maximum assistance of Rs. 100 lakhs, to a medium scale MSME unit with an investment of more than Rs. 10 crores in plant and machinery
  3. 50% reimbursement up to a maximum of Rs. 100 Lakhs for the establishment of a Common effluent treatment plant by a group (minimum 5) of industrial units investing up to a maximum of Rs. 10 crores (each unit) in plant and machinery.
  4. 50% of the expenditure incurred in development to the developer of industrial area/ flatted industrial complex in the private sector, maximum assistance of Rs. 250 lakhs provided that industrial area so developed is at least 5 acres and less than 10 acres or carpet area of flatted industrial complex should be at least 10000 sq. ft. and 15% of the expenditure incurred in establishment/development of industrial area/cluster of 10 acres or more subject to maximum assistance of Rs. 5 crores will be made provided to the developer. In such a developed industrial area/flatted industrial complex/cluster, it will be necessary to have a minimum of five working industrial units

Financial Assistance for Energy audit

To promote energy efficiencies in MSME units investing up to a maximum of Rs. 10 crores in plant and machinery, GoMP will reimburse 50% of the cost of conducting energy audit with maximum limit of Rs. 50,000 and 25% of the cost maximum Rs. 5 Lakhs for adoption of equipment and machinery

Scheme to Support Promotion of Manufacturing of Briquettes & Pellets and Biomass

The Biomass Programme is to support setting up of Biomass Briquette/Pellet manufacturing plants and to support Biomass (nonbagasse) based cogeneration projects in Industries

The programme provides Central Financial Assistance (CFA to project developers and service charges to implementing agency and inspection agencies in respect of setting up of Briquette / Pellet manufacturing plants and Biomass (non- bagasse) cogeneration projects in industries

Period

FY 2021-22 upto FY 2025-26

Pattern Of Assistances

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)

Subsidy For feed And Fodder Development

The aims towards strengthening of fodder seed chain to improve availability of certified fodder seed required for fodder production and encouraging entrepreneurs for establishment of fodder Block/Hay Bailing/Silage Making Units through incentivisation.

The sub-mission of the feed and fodder will have the following activities: Activity

 (i) Assistance for quality Fodder seed production Activity

 (ii) Entrepreneurial activities in feed and fodder

  1. Development of Entrepreneurship in the field of Feed and fodder.
  2. Promoting, developing and disseminating forage technologies through frontline technology demonstrations.
  3. To make available quality fodder with affordable price at the local level.
  4. To encourage the fodder production by the local farmers for supplying to these entrepreneurs. Thus use the fodder as a cash crop.

The private entrepreneurs, SHG, FCOs JLG, FPOs, Dairy Cooperative societies, section 8 companies will be incentivized for the value addition such as Hay/Silage/Total Mixed Ration(TMR)/ Fodder Block and storage of fodder by providing 50% percent capital subsidy towards project cost to the beneficiary for Infrastructure development related to hay/silage at village level/ Fodder blocks making units for procuring machinery like bailer, block making machines, TMR machines/equipment, Forage harvester /reaper, Heavy duty Power operated Chaff cutters and any other PHT equipment as per the requirement/need. The Entrepreneurs / Eligible Entities need to arrange the remaining amount through bank loan or from the financial institution like NCDC or self-finance

 Private entrepreneurs, SHG, FCOs, JLG, FPOs, Dairy Cooperative societies, section 8 companies

50% of the total project cost with subsidy up to Rs. 50 lakh will be provided to the beneficiaries

list of components eligible for funding for silage making unit for entrepreneurs (Production capacity 2000-2400 MT per annum)

Key Highlights of Union Budget 2024

the ‘mantra’ of ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas’ and the whole of nation approach of “Sabka Prayas”, the Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Interim Union Budget 2024-25 in Parliament, . The key highlights of the Budget are as follows:

‘Garib Kalyan, Desh ka Kalyan’

  • DBT has led to savings of ₹2.7 lakh crore
  • 25 crore people moved out of Multidimensional poverty
  • Credit assistance to 78 lakh street vendors under PM-SVANidhi

Empowering the Youth

  • 1.4 crore youth trained under Skill India Mission
  • Fostering entrepreneurial aspirations of Youth-43 crore loans sanctioned under PM Mudra Yojana

Welfare of ‘Annadata’

  • Direct financial assistance to 11.8 crore farmers under PM-KISAN
  • Crop Insurance to 4 crore farmers under PM Fasal Bima Yojana
  • Integration 1,361 mandis under eNAM, supporting trading volume of ₹ 3 lakh crore

Nari Shakti

  • 30 crore Mudra Yojana loans disbursed to women entrepreneurs
  • Increased female enrolment in higher education by 28 per cent in 10 years
  • 43 per cent of female enrolment in STEM courses
  • 1 crore women assisted by 83 lakh SHGs to become Lakhpati Didis

PM Awas Yojana (Grameen)

  • Despite COVID challenges, the target of three crore houses under PM Awas Yojana (Grameen) will be achieved soon.
  • Two crore more houses to be taken up in the next five years.

Rooftop solarization and muft bijli

  • 1 crore households to obtain 300 units free electricity every month through rooftop solarization.
  • Each household is expected to save Rs.15000 to Rs.18000 annually.

Ayushman Bharat

  • Healthcare cover under Ayushman Bharat scheme to be extended to all ASHA workers, Anganwadi Workers and Helpers.

Agriculture and food processing

  • Pradhan Mantri Kisan Sampada Yojana has benefitted 38 lakh farmers and generated 10 lakh employment.
  • Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana has assisted 2.4 lakh SHGs and 60000 individuals with credit linkages.

Research and Innovation for catalyzing growth, employment and development

  • A corpus of Rs.1 lakh crore to be established with fifty-year interest free loan to provide long-term financing or refinancing with long tenors and low or nil interest rates.
  • A new scheme to be launched for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’.

Infrastructure

  • Capital expenditure outlay for Infrastructure development and employment generation to be increased by 11.1 per cent to Rs.11,11,111 crore, that will be 3.4 per cent of the GDP.

Railways

  • 3 major economic railway corridor programmes identified under the PM Gati Shakti to be implemented to improve logistics efficiency and reduce cost
    • Energy, mineral and cement corridors
    • Port connectivity corridors
    • High traffic density corridors
  • Forty thousand normal rail bogies to be converted to Vande Bharat standards.

Aviation Sector

  • Number of airports in the country doubled to 149.
  • Five hundred and seventeen new routes are carrying 1.3 crore passengers.
  • Indian carriers have placed orders for over 1000 new aircrafts.

Green Energy

  • Coal gasification and liquefaction capacity of 100 MT to be set up by 2030.
  • Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes to be mandated.

Tourism sector

  • States to be encouraged to take up comprehensive development of iconic tourist centres including their branding and marketing at global scale.
  • Framework for rating of the tourist centres based on quality of facilities and services to be established.
  • Long-term interest free loans to be provided to States for financing such development on matching basis.

Investments

  • FDI inflow during 2014-23 of USD 596 billion was twice of the inflow during 2005-14.

Reforms in the States for ‘Viksit Bharat’

  • A provision of Rs.75,000 crore rupees as fifty-year interest free loan is proposed to support milestone-linked reforms by the State Governments.

Part B

Direct taxes

  • FM proposes to retain same tax rates for direct taxes
  • Direct tax collection tripled, return filers increased to 2.4 times, in the last 10 years
  • Government to improve tax payer services
    • Outstanding direct tax demands upto Rs 25000 pertaining to the period upto FY 2009-10 withdrawn
    • Outstanding direct tax demands upto Rs 10000 for financial years 2010-11 to 2014-15 withdrawn
    • This will benefit one crore tax payers
  • Tax benefits to Start-Ups, investments made by Sovereign wealth funds or pension funds extended to 31.03.2025
  • Tax exemption on certain income of IFSC units extended by a year to 31.03.2025 from 31.03.2024

Indirect taxes

  • FM proposes to retain same tax rates forindirect taxes and import duties
  • GST unified the highly fragmented indirect tax regime in India
    • Average monthly gross GST collection doubled to Rs 1.66 lakh crore this year
    • GST tax base has doubled
    • State  SGST revenue buoyancy (including compensation released to states) increased to 1.22  in post-GST period(2017-18 to 2022-23) from 0.72 in the pre-GST period (2012-13 to 2015-16)
    • 94% of industry leaders view transition to GST as largely positive
    • GST led to supply chain optimization
    • GST reduced the compliance burden on trade and industry
    • Lower logistics cost and taxes  helped reduce prices of goods and services, benefiting the consumers

Tax rationalization efforts over the years

  • No tax liability for income upto Rs 7 lakh, up from Rs 2.2 lakh in  FY 2013-14
  • Presumptive taxation threshold for retail businesses increased to Rs 3 crore from Rs 2 crore
  • Presumptive taxation threshold for professionals increased to Rs 75 lakh from Rs 50 lakh
  • Corporate income tax decreased to 22% from 30% for existing domestic companies
  • Corporate income tax rate at 15% for new manufacturing companies

Achievements in tax-payer services

  • Average processing time of tax returns has reduced to 10 days from 93 days in 2013-14
  • Faceless Assessment and Appeal introduced for greater efficiency
  • Updated income tax returns, new form 26AS and prefilled tax returns for simplified return filing
  • Reforms in customs leading to reduced Import release time
    • Reduction by 47% to 71 hours at Inland Container Depots
    • Reduction by 28% to 44 hours at  Air Cargo complexes
    • Reduction by 27% to 85 hours at Sea Ports

Economy-then and now

  • In 2014 there was a responsibility to mend the economy and put governance systems in order. The need of the hour was to:
    • Attract investments
    • Build support to the much-needed reforms
    • Give hope to the people
  •  The government succeeded with a strong belief of ‘nation-first’
  • “It is now appropriate to look at where we were till 2014 and where we are now”: FM
    • The Government will lay a White Paper on the table of the house.

Maharashtra State Export Promotion Policy-2023

Facilitation of Exports from Maharashtra:

    The major elements of Maharashtra Export Promotion Policy are as below:

  1. Creation and strengthening of export promoting infrastructure and facilities.
  2. Exclusive Incentives for the Exporters, Export Oriented Units (EOUs).
  3. Promotion of ODOP and GI products for stimulating the exports.
  4. Institutional arrangement for Export facilitation.
  5. Ease of Doing Export (EoDE) under the initiatives of EoDB.
  6. Convergence of policies of state government to promote Export.
  7. Maharashtra Export Promotion Council (MEPC) committee under the chairmanship
  8. of Honorable Minister (Industries).
  1. Features of Export Oriented Industrial Development Programme under Maharashtra State Export Promotion Policy:

The scheme offers the State support by way of Grant-in-Aid for creating and developing world class infrastructure to facilitate export ecosystem.

The components eligible are elaborated as below:

a) Basic infrastructure like Internal roads, Power, Water etc.

b) Supportive infrastructure like Common Effluent Treatment Plant (CETP), Cold Storage,

Ware-house facilities, Skilling and Incubation centers, Common recycling/ Resource

recovery facilities, High-speed telecommunication and Internet facilities, Digital

infrastructure, Plug-n-play facilities, Flatted factory complex, Safety and Disaster Risk

Reduction equipment, Trade support infrastructure, Export promotion facilities for

Farmer Producing Organization (FPO) such as Pre-processing, Storage (Cold chains),

Pack Houses etc.

c) Integrated Irradiation Infrastructure, High-end technology-based facilities to increase

shelf life of perishable agro-produce. Irradiation process involves controlled amount of

radiant energy to achieve in habitation of sprouting, delay in ripening, killing of incest

pest, parasites, pathogenic and spoilage microorganisms. This overall results in

extending the life shelf life of food and agro products keeping intact the basic

characteristics of the food and agro produce. This over all results in getting the

advantage of export.

d) Quality Standards to achieve Global competitiveness and Product Standards

development: Quality and Testing facilities to meet the standards of exporting

countries, R&D facilities.

e) Packaging and Designing facilities.

f) Green Initiatives like, Common Renewable Energy Generation (Solar, Wind, Bio),

Energy management equipment, Water harvesting, Reducing physical waste and

recycling of the wastage, Disposal and sustainable handling of biodegradable wastesin

industrial areas, Carbon management etc.

g) Connected Infrastructure like Transport and Logistics facilities, Container handling

facilities like Container Freight Station (CFS), Highway connectivity etc.

h) The project components to meet Last mile and First mile connectivity, Need based

infrastructure.

i) In addition to these the Empowered Committee (EC) may include sector specific

infrastructure gaps, need based facilities as per the need of the project.

Types of Export oriented industrial development programme

I. Export Oriented Specific Project (EOSP)

  • Export Oriented Specific Project (EOSP):Under the export promotion policy, export oriented specific projects will be approved to address the specific gap related to export infrastructure/ facilities in the specific Industrial Pocket/ Cluster.
  • The said projects will be supported with state grant as per zones described as below with a grant limit of Rs. 50 crores per project.

The Zone wise financial assistance from State under “Export Oriented Specific Project (EOSP)”:

ZoneTaluka / Area Classification As per PSI -2019State Grant Contribution on Approved project costRemarks
I.A & B40%· For Export Oriented Specific Projects (EOSP) projects will be supported with Grant-In-Aid as per respected zones concerned to location of the project. Grant-in-aid is limited to INR 50 Crore. · Land must be with the Implementing Agency; Cost of Land will not beconsidered in the Project Cost. · The Cost of Building (CFC, Administrative building) shall not exceed 25% of the total project cost. The cost over and above 25% shall be borne by Implementing Agency. · Limited to 5 projects shall be permitted from each mentioned Zone. · Total of 15 Projects in a policy period will be approved under EOSP. · The projects applied under ASIDE Scheme of Govt. of India and compiling the norms of State’s export promotion policy will also be eligible under EOIDP
II.C, D, D+50%
III.Vidarbha, Marathwada, Ratnagiri, Sindhudurg & Dhule, Naxalism Affected Areas and Aspirational Districts as mentioned in PSI-2019 policy.60%

ii. Export Oriented Industrial Park (EOIP) under export promotion policy:

The Export Oriented Industrial Parks (EOIP) will be a dedicated export promoting parks spread on minimum 100 acres of contiguous land for specific industries sector, related sector. The EOIP projects shall be with minimum project investment cost of Rs. 200 Crore. The EOIP projects will be also setup in the Port, Dry Port proximity area (as described in Maharashtra Port Policy) with minimum project investment cost of Rs. 100 Crore and minimum contiguous land of 50 acers. Out of total area minimum 20% area shall be earmarked for MSMEs with a name as “MSME Zone”. The EOIP shall be designed in such a way that proven exporting units shall be set-up on priority basis having export value of minimum 50% of total turnover. To confirm with the criteria, the last 3 years exporting performance will be observed

The integrated facilities that will be available for investors are as below:

  1. Common Infrastructure and Logistics Facilities:
  2. Technology and Communication Infrastructure:
  3. Transportation Infrastructure:
  4. Industrial Buildings and Warehouses:
  5. Port and Terminal Facilities:
  6. Business Support Centers:
  7. Amenities and Social Infrastructure:
  8. Commercial Area:
  9. Simplified Regulations:

Financial assistance under Export Oriented Industrial Park (EOIP):

ZoneTaluka / Area Classification As per PSI – 2019State Grant Contribution on Approved project costRemarks
I.A & B40%· For Projects under EOIP will be setup in minimum 100 Acer contiguous land or on minimum 50 Acer in case of Port, Dry Port Areas. · The Integrated facilities includes the ‘State-ofthe-Art’ Basic industrial infrastructure, Supportive infrastructure, Export facilitating infrastructure, Social infrastructure and Common sharing facilities at single location. · Land must be with the Implementing Agency; Cost of Land will not be considered in the Project Cost. · The Cost of Building (CFC, Administrative building) shall not exceed 25% of the total project cost.The cost over and above 25% shall be borne by Implementing Agency. · Limited to 5 projects shall be permitted from each mentioned Zone. · The projects will be supported with Grant-InAid as per respected zones concerned to location of the project. Grant-in-aid is limited to INR 100 Crore. · Total of 15 Projects will be approved in a policy period under MS-EPP.
II.C, D, D+,50%
III.Vidarbha, Marathwada, Ratnagiri, Sindhudurg & Dhule, Naxalism Affected Areas and Aspirational Districts

Eligible Agencies under MS-EPP

i. Public Sector undertakings of State Governments.

ii. Other agencies of State Governments.

iii. Export Promotion Councils / Commodity Boards.

iv. Apex Trade bodies recognized under the EXIM policy of Government of India and

other apex bodies recognized for this purpose by the Empowered Committee.

v. The Private Industries / Industries Organizations/ Industries Associations

vi. Implementation agencies of the projects which were earlier placed for consideration

before the State Level Export Promotion Committee (SLEPC) established under the

ASIDE Scheme but could not be decided due to delinking of the scheme.

vii.Joint Venture of any of the above Government agencies where it has a major stake

holding are also eligible.

2 . Incentivizing the Export manufacturing units in the State:

The State Government will incentivize the export initiatives of manufacturing units in the category of MSMEs and ‘Special Large category’. For availing the incentives under PSI-2019 policy, the MSMEs are defined as the fixed investment upto Rs. 50 Crore. The manufacturing units with fixed investment above Rs. 50 Crore (MSME Limit) and below the Large category limit.

export minimum 50% (30% for SC, ST and Women entrepreneurs) of their total turnover

The Interest Subsidy Incentive shall be applicable for 14 Production Linked Incentives (PLI) industry sectors as made eligible by Government of India under their PLI policy. The list of 14 eligible industry sectors is enumerated as below.

1. Large Scale Electronics Manufacturing

2. Key Starting Materials (KSMs)/ Drug Intermediaries (DIs) and Active Pharmaceuticals

Ingredients (APIs)

3. Manufacturing of Medical devices

4. Electronic/ Technology Products

5. Pharmaceuticals drugs

6. Telecom and Networking Products

7. Food Products including Aqua Food

8. White Goods (ACs & LED)

9. High Efficiency Solar PV Modules

10. Automobiles & Auto Components

11. Advance Chemistry Cell (ACC) Battery

12. Textile Products: MMF segment & technical textiles

13. Specialty Steel

Incentives for New MSME Entrants:

  1. Assistance to MSMEs for participation in International Exhibition:. The cost limited to INR 3.0 lakh or 50%
  2. The MSME exporter being the part of the delegation of EPCs, WTC, DGFT, FIEO will be assisted with the cost limited to INR 1.0 lakh or 50% for the general category and 75% for Women entrepreneurs/ Schedule Caste/ Schedule Tribe of the total cost of travel, whichever is less will be reimbursed limited to one time per unit per annum.
  3. Logistics incentives for 1st time MSME exporter: For first three years the logistics expenditure will be subsidies for 50% of the total logistics expenditure. The logistics expenditure will be reimbursement limited to INR 1 lakh per MSME per annum

The Package of export incentives for Special Large-Scale Industries (LSI) (As defined in Para 5 above) : The manufacturing units in the ‘Special Large Scale’ Category exporting minimum 50% of their total turnover (30% of export turnover in case of Women, SC, ST entrepreneurs) shall be incentivized for their export performance by extending special package of incentives.

Silos & Warehouse Subsidy In Maharashtra

The government of Maharashtra has taken a proactive approach to promote the adoption of silos among farmers. Under the PSI 2019 the Silos Subsidy is aimed at providing financial assistance and support for the establishment, upgrading, and maintenance of silos across the state.

Turns agricultural produces, into something that can eventually be eaten. This category
includes ingredients that are produced by processes such as drying, threshing,
winnowing, and milling grain, shelling nuts, etc.

subsidy consultants for food processing industries

Subsidy For Food Processing Industry

Government subsidies for food processing industries are financial incentives and support mechanisms provided by governments to encourage investment, innovation, and sustainability within the sector. These subsidies are typically designed to benefit various stakeholders, including food processors, farmers, consumers, and the overall economy.

Recently MOfpi invited proposal vide expression of interest for prospective Entrepreneurs under the following component scheme of Pradhan Mantri Kisan Sampada Yojana

Types Of Government Subsidies for Food Processing Industries

1.   Cold Chain

The objective of the Scheme of Cold Chain,

  Value Addition and Preservation Infrastructure is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. It covers creation of infrastructure facility along the entire supply chain viz. pre-cooling, weighing, sorting, grading, waxing facilities at farm level, multi product/ multi temperature cold storage, CA storage, packing facility, IQF, blast freezing in the distribution hub and reefer vans, mobile cooling units for facilitating distribution of horticulture, organic produce, marine, dairy, meat and poultry etc. The scheme allows flexibility in project planning with special emphasis on creation of cold chain infrastructure at farm level. – subsidy consultants for mofpi schemes for food processing industries

Pattern of Assistance

  • 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, ITDP Areas & Islands, 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, ITDP Areas & Islands, will be provided.
  • irradiation facilities grant-in-aid will be provided @ 50% for General Areas and @ 75% for North East States, Himalayan States, ITDP Areas & Islands.

2.   Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)

 The main objective of the Scheme is creation of processing and preservation capacities and modernisation/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage. The processing activities undertaken by the individual units covers a wide range of post-harvest processes resulting in value addition and/or enhancing shelf life with specialized facilities required for preservation of perishables.

While expansion of processing capacity is necessary to increase the level of processing and reduce wastage, the induction of modern technology is intended to make a clear difference in terms of process efficiencies as well as improving the quality of the end product. The setting up of new units and modernization/ expansion of existing units are covered under the scheme.

Eligible sectors:

Food processing sectors eligible under the Scheme includes – (i). Fruits & vegetables processing, (ii). Milk Processing (iii). Meat/poultry/fish processing, (iv). Ready to Eat / Ready to Cook Food Products/ Breakfast cereals/ Snacks / bakery and other food products including nutritional health foods. (v). Grains/pulses, oil seed milling and processing based on modern technology. (vi). Modern Rice milling. (vii). Other agri-horti products including spices, coconut, soybean, mushroom processing, honey processing, etc. (viii). Fruits/ Honey based wines. (ix). Natural Food flavors, food additives/ food extracts & colours, oleoresins, guar gum, cocoa products etc. (x). Manufacturing jaggery from sugarcane and value added products from jaggery (as raw material) except sugar mills. (xi). Any other sector that makes food products fit for human consumption. (xii). Animal feed manufacturing unit to be set up in Mega Food Parks and Agro Processing Clusters approved by the Ministry from time to time.

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 subject to max. of Rs. 5.00 crore per project.

Click for more information : View Post

https://finraja.com/mofpi-consultancy/uncategorized/(opens in a new tab)


3.   Agro Processing Cluster Scheme

The scheme aims at development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/ farmers to the processors and markets through well-equipped supply chain with modern infrastructure. Each agro processing clusters under the scheme have two basic components i.e. Basic Enabling Infrastructure (roads, water supply, power supply, drainage, ETP etc.), Core Infrastructure/ Common facilities (ware houses, cold storages, IQF, tetra pack, sorting, grading etc) and at least 5 food processing units with a minimum investment of Rs. 25 crore

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 and SC/ST entrepreneurs subject to max. of Rs. 10.00 crore per project.

Click for more information : View Post


4.   Operation Greens – Long Term Interventions

Component: –

  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.

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  

5. 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

Ministry of food processing consultancy
finraja provides all types of government subsidy /grant & we ensures that your projects gets maximum subsidy / grant

Government Subsidy For Sericulture

Maharashtra is a non-traditional silk producing state that produces both Mulberry and Tasar Silks. It occupies 1 st position in silk production among non-traditional states and 13th position among 29 silk producing states.

The State has huge sericulture prospects with suitable soil and environmental condition in the state. Efforts will be made to increase the production of silk cocoons and silk yarn

Incentives and Measures:

The following incentives will be provided to the sericulture farmers to produce and promote silk production and tap the growing market demand.

Farming and Cocoon Production

Promoting sericulture and group farming to create a guaranteed source of income for farmers. Private sector involvement will be promoted to sustain sericulture

 ii To increase the average cocoon production from 60kg to 70kg per batch of 100 Disease Free Laying (DFLs).

 iii To increase the capacity of the government grainage center at Gadhinglaj, Dist. Kolhapur and to set up a new grainage center at Aurangabad, to meet the demands of DFLs. Additionally, two additional grainage centres will be set up in Zone 1 and Zone 3. All Government subsidies will be given to the DFLs produced within the State.

 iv To develop as a basic seed farm in Suleran district Kolhapur, Amboli district Sindhudurg, Chikalthana Dist. Aurangabad and at Khor Dist Buldhana in the state. To supply quality DFLs to the farmers in the state by rearing P-3 and P-2 DFLs.

v Setting up of private and government silk cocoon production centers, Chawki centers, nurseries, etc. will be encouraged. vi 100% DFL supply through Chawki centers by encouraging private entrepreneurs.

vii Mulberry silk farming will be increased by 10,000 acres in next 5 years. viii Target to increase 2000 Tasar beneficiaries in 5 years.

 ix Tasar Silk farming will be increased through greater plantation of Ain / Arjun trees in collaboration with the Forest Department. x Tasar is a forest farm plantation and hence the beneficiary area’s ceiling will be increased from 2 Ha to 4 Ha in areas having Ain / Arjun trees.

xi The benefits under the current Sericulture scheme are limited to holdings of 1 acre which limits provision of “farm ponds”. In view of providing irrigation, the benefits will be extended to holdings of 5 acres while keeping the costs same for the unskilled component.

Processing

 i. The State shall support in establishment of Paithani weavers’ clusters at village level with minimum of 20 weavers in one cluster.

 ii. 2 Drying centres and godown facilities will be made available to store and preserve Tasar silk cocoons.

Centrally Sponsored Scheme:

 i Silk Samagra-2- It is an integrated scheme for development of silk industry. It provides assistance to farmers for mulberry plantation, construction of rearing house, procurement of rearing equipment’s and irrigation facility.

Financial Assistance

Category (small and marginal farmers)GoIStateBeneficiary
General States50%25%25%
General States- For SCSP & TSP65%25%10%
Special Status States (for General, SCSP & TSP Category80%10%10%

State Sponsored Scheme:

i The State will offer 50% subsidy as per DSR rates or INR 40 lakh whichever is less for establishment of Automatic Reeling Machine Unit- (ARM Sheds) such that the shed has minimum 400 ends or 40 basins.

ii The State will offer 50% subsidy as per DSR rates or INR 20 lakh whichever is less for establishment of Automatic Reeling Machine Unit- (ARM Sheds) such that the shed has minimum 200 ends or 20 basins.

iii The State will offer 50% subsidy as per DSR rates or INR 15 lakhs whichever is less for establishment of Automatic Reeling Machine Unit (ARM Sheds) such that the shed has minimum 120 ends or 12 basins.

iv The State will offer 50% subsidy as per DSR rates or INR 3 lakh whichever is less for establishment of multi-end reeling machine unit- MRM sheds such that the shed has minimum 100 ends or 10 basins.

v The State shall offer 50% subsidy as per DSR rates or Rs. INR 6 lakhs, whichever is less for establishment of twisting machine sheds.

Government Subsidy For Knitting, Hosiery, Garmenting Sector

The Stats of Maharashtra currently has 110 knitting, hosiery and garmenting units. The State is incentivizing to increase the garmenting sector in the state to complete the value chain and promote sale of finished products.

Incentives

The incentives offered to the knitting, hosiery and garmenting sector will vary as per the Zones. The Zonal classification is given in the Annexure. The incentives offered are as follows1.

Capital and Electricity Subsidy:

Size/ ZoneFinancial Assistance in form of Capital Subsidy-% (on fixed capital investment)Electricity Subsidy
MSME
Zone 145%  As per Annexure
Zone 240%
Zone 335%
Zone 430%
Large Enterprises
Zone 140%    As per Annexure
Zone 235%
Zone 330%
Zone 425%
Mega Enterprises
Zone 155% with a maximum up to INR 250 crore, whichever is less          As per Annexure
Zone 250% with a maximum up to INR 225 crore, whichever is less
Zone 345% with a maximum up to INR 200 crore, whichever is less
Zone 440% with a maximum up to INR 175 crore, whichever is less
Ultra Mega Enterprises· High Power Committee (HPC), under Chief Secretary will be constituted to approve the Special Package of Incentives to Ultra Mega projects. · For ultra-mega projects the investment will have to be made within a period of 10 years from the date of issue of Letter of Intent from the DepartmentAs per Annexure