Eligibility

Existing Micro food processing enterprises

Quantum of Assistance

• The Scheme is for upgradation of existing micro food processing enterprises and adopts One District One Product (ODOP) approach.

• Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit. The beneficiary contribution should be minimum 10% and the balance should be loan from a Bank.

• Support to FPOs / SHGs / Cooperatives for capital investment along the entire value chain with credit linked grant @ 35%

• Seed capital @ Rs. 40,000/- per SHG member would be provided to those engaged in food processing for working capital and purchase of small tools.

• Credit linked grant @35% would be provided to FPOs, SHGs, cooperatives, State owned agencies and private entrepreneurs for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging, and incubation centre.

• Support for branding and marketing would be limited to 50% of the total expenditure.

Objectives

To enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector