171 applicants registered under Rs.10,900cr PLI scheme
Rs.8,910 crore has been invested made across 213 locations to date under the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) which was approved by the Cabinet on 31 March 2021 with a budget of Rs.10,900 crore for implementation during 2021-22 to 2026-27.
As of 31 Oct 2024, the scheme has reportedly generated employment of over 2.89 lakh http://mofpi.gov.in.
The PLISFPI scheme has enrolled 171 applicants following active stakeholder engagement and extensive publicity to ensure broad participation, the Minister of state for Food Processing Industries Ravneet Singh Bhittu said in a written reply in Lok Sabha on 6 Dec 2024.
By mandating the use of domestically grown agricultural products (excluding additives, flavors, and edible oils) in the manufacturing process, the scheme has substantially increased local raw material procurement, supporting farmers’ incomes https://www.bseindia.com/.
Furthermore, the emphasis on local production of raw materials for processed food has generated additional off-farm employment opportunities, significantly contributing to the economic development of rural regions https://www.nseindia.com/.
The scheme has significantly contributed to the country’s overall growth and development by scaling up domestic manufacturing, enhancing value addition, boosting the domestic production of raw materials, and creating employment opportunities. The scheme supports large companies, millet-based products, innovative and organic products, as well as small and medium enterprises, while also promoting Indian brands globally.
The Government actively supports Small and Medium Enterprises (SMEs) in the food processing sector through schemes like Pradhan Mantri Kisan Sampada Yojana (PMKSY), Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), and the Pradhan Mantri Formalization of Micro-food processing Enterprises (PMFME) scheme. These schemes provide financial, technical, and marketing support to SMEs, facilitating capacity expansion, innovation, and formalization. SMEs are also eligible to avail the benefits under various components of the PMKSY Scheme https://www.makeinindia.com/home/.
PMFME scheme specifically targets formalization of unorganized units, improving their access to institutional credit, modern infrastructure, and enhanced food processing capacity. Under the PLI scheme, a significant proportion of beneficiaries are MSMEs, with 70 MSMEs directly enrolled and 40 others contributing as contract manufacturers for larger companies http://agriwelfare.gov.in.
Collectively, these initiatives have strengthened SMEs by fostering innovation, improving competitiveness, expanding market access, generating employment opportunities, and supporting the broader value chain in the food processing industry.
Under the Production Linked Incentive Scheme for Food Processing Industries (PLISFPI), the Government provides financial incentives to promote Indian food brands abroad, supporting branding and marketing activities for Indian-branded consumer food products in global markets https://sbi.com.in/.
Beneficiaries are reimbursed 50% of their expenditure on branding and marketing abroad, capped at 3% of their annual food product sales or Rs.50 crore per year, whichever is lower. Applicants are required to spend a minimum of Rs.5 crore over five years to qualify. Currently, there are currently 73 beneficiaries under this component of the PLI scheme. Fiinews.com
