MOFPI SCHEME: PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY)

(Scheme for creation/expansion of food processing & preservation capacities)
Deadline to Apply : 28th March 2025- 5 PM

The objective of the Scheme:

• Creation of processing and preservation capacities
• The expansion of existing food processing units.

Financial Assistance:-

Capital subsidy @ 35% of the eligible cost of the Project (Max. subsidy limit 5 Crore)

Eligible Segments:-

• Processing units (Fruits, vegetables, milk, poultry, fish, food grains, pulses, oil seeds, spices, mushroom, honey, guar gum, cocoa, etc.)
• Jaggery manufacturing and value-added products
• Animal feed manufacturing units
• Carbonated drinks and beverages
• Ready-to-eat/bakery/breakfast cereals, etc.
• Any other segment that makes food products

Eligible Cost of Project:-

• Technical Civil Work
• Plant & Machinery
• Utilities such as DG set, Transformer, Boiler, Solid Waste Treatment Plant, ETP, RO, Control Panel, Weighbridge Etc.

Ineligible Cost of Project:-

• Compound Wall
• Approach Road/Internal Roads
• Cost of Land and Site Development
• Administrative Office Building
• Canteen, Labour Rest Room, and Quarters for workers
• Non-technical civil work
• Pre-operative Expenses

Eligible Entities:-

• Any Individual/ central & State PSU/Joint Venture/NGO/Cooperative/Self Help Group (SHG)/Farmer Producer Organisations (FPO)/Farmer Producer Company(FPC)
• Public & Private sector Companies
• Limited Liability Companies (LLP)
• Partnership Firm
• Proprietorship

Eligible Locations:-

• Inside Mega Food Park (MFPs)
• Inside Agro-Processing Clusters (APCs)
• Anywhere outside MFPs/APCs

Eligible Criteria:-

• The net worth of the applicant shall not be less than 1.5 times of the subsidy
• Registered Lease Deed for a period of 15 Years
• The date of the bank sanction letter should not be earlier than the date of issue of Expression of Interest (EOI)
• Term Loan from the bank for an amount not less than 20% of the total project cost.
• Infusion of 20% equity is a must. (Unsecured loans will not be treated as part of equity)
• Minimum Eligible Project cost is Rs. 3 crore
• The expenditure incurred on the project before the sanction of the term loan will not be considered under the eligible project cost. However, only, advances paid for plant and machinery and final billing/ invoices paid after sanction of the term loan then such total expenditure will be considered under eligible project cost.
• Project completion will be 18 months from the date of issue of the approval letter.  (it may be extended upon request)

Fees to Ministry:-

• Non-refundable fee of Rs. 20,000 to the Food Ministry
• After approval applicant has to submit a bank guarantee of 5% of the subsidy

Documents Required for Application:-

(Online application on SAMPADA portal- No physical application)

• Detailed Project Report
• CA/Statutory Auditor Certificate
• Term Loan Sanction Letter
• Detailed Appraisal Note
• Company KYC
• Biodata of promoters
• Financial Statements of Last 2 Years
• Land Documents (Registered Lease Deed for a period of 15 Years)
• Proof of Fee
• Quotations
• Technical Civil Work certified by chartered Engineer (CIVIL)
• Plant & Machinery certified by chartered Engineer (Mechanical)

Process Flow

1. Proposal Invited by Ministry
2. Technical Committee (TC) and Project Approval Committee (PAC) scrutinize the application
3. A proposal has to obtain a minimum of 60% marks as per TC in order to be eligible for subsidy.
4. The ministry will issue an approval letter to the successful applicants.
5. After the approval letter applicant has to submit an acceptance letter.
6. The Joint Inspection team will visit before the release of both installments.

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Release of Subsidy: