Creation/ Expansion of Food Processing/ PC (Unit Scheme)

The Scheme for Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC/Unit Scheme), facilitated by the Ministry of Food Processing Industries (MoFPI), aims to develop processing and preservation capabilities while modernizing or expanding existing food processing units. This initiative is designed to increase the level of food processing and value addition, reduce food loss, and enhance farmers’ income.

Eligible Sectors

Fruits & Vegetables Processing
Milk Processing
Meat/Poultry/Fish Processing
Ready-to-Eat/Ready-to-Cook Food Products
- Breakfast cereals, snacks, bakery, nutritional health foods
Grains/Pulses, Oil Seed Milling, and Processing
- Modern technology-based processing
Modern Rice Milling
Other Agri-Horti Products
- Spices, coconut, soybean, mushroom processing, honey processing
Fruits/Honey-based Wines
Natural Food Flavors, Additives, Extracts & Colors
- Oleoresins, guar gum, cocoa products
Manufacturing Jaggery and Value-Added Products
- Excluding sugar mills
Other Food Products Fit for Human Consumption
Animal Feed Manufacturing Units
- Located in Mega Food Parks or Agro Processing Clusters approved by the Ministry
Carbonated Drinks/Beverages Containing Fruit Juice/Pulp
- Limited to two units in a Mega Food Park and one unit in an Agro Processing Cluster

Ineligible Activities

Manufacturing of aerated water (other than specified carbonated drinks)
Packaged drinking water

Eligible Processing Activities

Sorting, Grading, Washing, Peeling, Cutting, Sizing
Blanching, Crushing, Extraction, Pulping
Drying, De-husking, De-hulling, Splitting, Depoding, Deseeding, Color Sorting, Pulverization, Extrusion, Freeze Drying/Dehydration, Frying
Pasteurization, Homogenization, Evaporation, Concentration
Packaging Facilities
- Canning, aseptic packaging, vacuum packaging, bottling, edible packaging, labeling, specialized packaging
Chemical Preservation, Pickling, Fermentation
- Specialized preservation activities
Freezing Technologies
- Individual Quick Freezing (IQF), blast freezing, plate freezing, spiral quick freezing
Controlled Temperature Transport
- Coolers, refrigerated/insulated/ventilated transport
Other Processing/Preservation/Transport/Storage Facilities
- For value addition and shelf life enhancement of food products
Fire Fighting Equipment and Insect Repellents

Eligible Entities

Any organization or individual engaged in or planning to engage in the creation/expansion/modernization of food processing and preservation capacities.
Proposals from Scheduled Caste (SC)/Scheduled Tribe (ST) entities with at least 51% stake will be treated as SC/ST proposals.

Eligible Locations

Inside and outside Mega Food Parks (MFPs)/Agro Processing Clusters (APCs)
Allocation: 60% for units inside MFPs/APCs and 40% for units outside

Eligibility Criteria

Net Worth
- Combined net worth must be at least 1.5 times the grant-in-aid sought.
- For proposals from Difficult Areas, SC/ST categories, Farmer Producer Organizations (FPOs), and Self-Help Groups (SHGs), combined net worth should match the grant-in-aid.
- SC/ST member(s) must have at least 10% of the combined net worth for SC/ST proposals.
- No net worth criteria for proposals from Central/State Government entities.

Application Process

Submission of Proposal:
- Detailed project report outlining the project components, cost estimates, and expected outcomes.
- Documentation of eligibility, including area classification and organizational status (e.g., FPO, SHG).
Approval Process:
- Proposals reviewed by an expert committee for technical and financial feasibility.
- Sanctioning of grants based on merit, compliance with guidelines, and availability of funds.

Pattern of Assistance

Grants-in-aid:
- General Areas: 35% of eligible project cost (up to ₹5 crore)
- Difficult Areas/SC/ST/FPOs/SHGs: 50% of eligible project cost (up to ₹5 crore)
No upward revision of approved grants-in-aid.
Proportional deduction of grants-in-aid for dropped components.
SC/ST proposals must maintain at least 51% SC/ST stake throughout the project.

Dovetailing of Assistance

Project Implementing Agencies (PIAs) can dovetail assistance from other Central/State Government schemes to improve project viability, ensuring no duplication of assistance for the same component/activity.

Grant Release

The grants-in-aid will be released in two equal installments.

Detailed Cost Breakdown

New Units/Modernization:
- Example Calculation (Eligible Basic Cost):
  - Project Cost: ₹10 Crores.
  - General Area Grant: ₹3.5 Crores (35% of ₹10 Crores).
  - Difficult Area Grant: ₹5 Crores (50% of ₹10 Crores).
  - Note: Maximum grant is capped at ₹5 Crores.

Implementation Plan

Project Initiation:
- Preliminary assessment and proposal submission.
- Approval and sanction of grants.
Infrastructure Development:
- Establishment of new processing units or modernization of existing ones.
- Procurement and installation of machinery and technical civil works.
Operational Phase:
- Commencement of processing activities.
- Production, storage, and quality testing of processed food products.
Monitoring & Evaluation:
- Regular review of project progress.
- Ensuring adherence to the grant utilization guidelines.
- Periodic auditing and inspection by MoFPI.

Conclusion

The MoFPI scheme for setting up and modernization/expansion of food processing units aims to enhance the infrastructure and capacity of the food processing industry. By providing substantial financial assistance for both new and existing units, the scheme ensures the development of a robust food processing sector, promoting inclusive growth and optimizing fund allocation between MFPs/APCs and other areas.

How Alliance Food Engineering Consultant Provides Services for the Creation/Expansion of Food Processing Units (CEFPPC/Unit Scheme)

Grant Opportunity Facilitation

Alliance Food Engineering Consultant specializes in assisting entrepreneurs and organizations in securing grants and subsidies for setting up or upgrading food processing units under the MoFPI’s Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC/Unit Scheme). Our comprehensive services include:

Project Conceptualization:

Detailed Project Plan Development: We help in developing a detailed project plan that aligns with MoFPI guidelines and maximizes eligibility for grants.
Scope and Objective Definition: Our team works closely with you to ensure the project scope, objectives, and goals are clearly defined and meet the scheme’s requirements.

Documentation Support:

Preparation of Detailed Project Reports (DPRs): Our experts assist in preparing comprehensive DPRs that include financial projections, technical specifications, and compliance certificates.
DPR for Ministry and Bank: We ensure that the DPR is tailored to meet the specific criteria of both the Ministry of Food Processing Industries and financial institutions.

Application Submission:

Management of the Entire Application Process: We handle the complete application process, ensuring that all requirements are met and deadlines are adhered to.
Timely Submission: Our team ensures that your application is complete, correctly formatted, and submitted on time to avoid any delays.

Approval Process:

Coordination with MoFPI: We maintain regular communication with MoFPI to facilitate a smooth approval process for your project.

Grant Release Documentation:

Assistance with Subsidy Release Documentation: Once your project is approved, we assist in preparing and submitting the necessary documents for the release of grants and subsidies.
Compliance and Monitoring: We ensure that all documentation complies with MoFPI guidelines and monitor the submission process to expedite the release of funds.

Project Setup Services

In addition to securing grants, Alliance Food Engineering Consultant offers comprehensive project setup services for food processing units, including:

Site Selection and Feasibility Studies:

Thorough Site Assessments: We conduct detailed site assessments and feasibility studies to identify the best location and operational strategy for your food processing unit.
Regulatory and Logistical Compliance: Our analysis ensures that the chosen site aligns with regulatory and logistical requirements.

Design and Engineering:

State-of-the-Art Facility Design: Our experts design modern food processing facilities that comply with all regulatory standards and maximize operational efficiency.
Optimal Layout: We focus on creating an efficient layout that optimizes workflow and integrates the latest technology for effective food processing.

Equipment Procurement and Installation:

Sourcing Latest Technology: We assist in sourcing and installing the latest food processing technology and equipment.
Industry Standards Compliance: Our team ensures that your facility is equipped with cutting-edge tools, adhering to all industry standards and best practices.

Training and Support:

Comprehensive Staff Training: We provide thorough training for your staff on the use of new equipment and processing procedures.
Ongoing Operational Support: Continuous support is available to ensure smooth operations and adherence to safety and quality standards.

Conclusion

Alliance Food Engineering Consultant is dedicated to helping entrepreneurs and organizations establish successful food processing units. By leveraging our expertise in grant facilitation, project setup, and subsidy management, we ensure that your project not only meets industry standards but also benefits from the financial support available under the MoFPI’s CEFPPC/Unit Scheme. Let us guide you through every step of the process to achieve a successful and compliant food processing facility.

For more information mail us: [email protected]

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