: Govt issues guidelines for PLI scheme for the Food Processing Industry #FinanceIndia #StockMarketNEWS Govt issues guidelines for PLI scheme for the Food Processing Industry New Delhi, May 4 (KNN) The
@stockMarketNEWS Thu 06 May, 2021
Govt issues guidelines for PLI scheme for the Food Processing Industry #FinanceIndia #StockMarketNEWS
Govt issues guidelines for PLI scheme for the Food Processing Industry New Delhi, May 4 (KNN) The government has issued guidelines for the Production Linked Incentive (PLI) Scheme for the Food Processing Industry (PLISFPI) and also launched an online portal for the PLISFPI.
As part of the Prime Ministers announcement of Aatmanirbhar Bharat Abhiyan, the Government has approved a new Central Sector Scheme namely PLISFPI for implementation during 2021-22 to 2026-27 with an outlay of Rs 10,900 crore.
The aim is to support the creation of global food manufacturing champions commensurate with Indias natural resource endowment and support Indian brands of food products in the international markets, the Ministry of Food Processing Industries said in a statement on Monday.
The Ministry said it is inviting applications for availing sales-based incentives and grants for undertaking Branding and Marketing activities abroad under the scheme from three categories of Applicants. The last date for submission of the application is June 17, 2021.
In Category- 1, the applicants are large entities who apply for Incentive based on Sales and Investment Criteria. An applicant under this category could undertake Branding and Marketing activities abroad also and apply for a grant under the scheme with a common application.
In category-2, Small and Medium Enterprises Applicants manufacturing innovative products who are applying for PLI Incentive based on Sales.
In category-3, Applicants who are applying solely for a grant for undertaking Branding and Marketing activities abroad.
The sales-based incentive under the scheme would be paid for six years from 2021-22 to 2026-27 on incremental sales over the base year. The base year for calculation of incremental sales would be 2019-20 for the first four years. For the 5th and 6th years, the base year would be 2021-22 and 2022-23, respectively. Sales should include sales of eligible food products manufactured by the applicants as well as its subsidiaries and contract manufacture.
Applicants will be extended a grant @50 per cent of expenditure on branding and marketing abroad subject to a maximum grant of 3 per cent of sales of food products or Rs 50 crore per year, whichever is less. The minimum expenditure for branding abroad shall be Rs 5 crore over five years.
The selection of applicants under Category-I will be based on their sales, exports, committed investment. Four product segments are proposed to be incentivised under the scheme -- ready to cook/ ready to eat (RTC/RTE) including millet-based foods, processed fruits and vegetables, marine products and mozzarella cheese.
Selected applicants must fulfil the minimum required sales growth rate criteria to become eligible for the incentive.