CENTRAL GOVERNMENT SCHEME ON “Scheme for Integrated Cold Chain & Value Addition Infrastructure – setting up of multiproduct food irradiation units by MOFPI
Dear Businessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share with you benefit of Scheme for Integrated Cold Chain & Value Addition Infrastructure – setting up of multiproduct food irradiation units by MOFPI.
Objects:
The objective of the scheme is to support setting up of food irradiation units for treatment of perishable agricultural produce like fruits and vegetables as well as other such items with irradiation treatment for hygienization and enhancing shelf life.
Quantum of Assistance:
Grants-in-aid will be @35% of eligible project cost for projects in General Areas and @50% of eligible project cost for projects in Difficult Areas as well as for projects of SC/ST, FPOs and SHGs, subject to the maximum of Rs.10 crore per project, of the cost of Plant & Machinery (P&M) and Technical Civil Works (TCW).
Note: To avail financial assistance under the Scheme, food irradiation component is a mandatory component. Any proposal without food irradiation component will not be considered for assistance under this scheme.
Eligible Entities:
Individuals and organizations, such as FPOs, FPCs, SHGs, NGOs, PSUs, firms, and companies etc., who are interested in food irradiation and cold chain solutions, as well as those involved in managing supply chains, can establish standalone food irradiation units or food irradiation units integrated with cold chain and value-addition infrastructure projects. Entities from MSME sector will be given priority in assessment..
Eligibility :
- The combined net worth of the applicant should be at least equal to grant-in-aid sought for from the Ministry.
- In-principle/ final term loan sanction letter (for a fresh proposal) from a Bank.
- Term loan from the Bank for an amount not less than 20% of the total project cost in respect of proposals from General Areas. In case of proposals from Difficult Areas or proposals from SC/ST or Farmer Producer Organisations or Self-Help Groups, term loan amount shall not be less than 10% of the total project cost.
- A detailed Appraisal Note from a Scheduled Commercial Bank specific to the project proposal.
- Infusion of equity of at least 20% of the total project cost for proposals from General Areas and 10% of the total project cost for proposals from Difficult Areas or SC/ST or Farmer Producer Organisation or Self-Help Groups.
- Minimum area of land should be 1.5 acres for stand-alone irradiation unit and 3.5 acres for an integrated irradiation unit.
- Only one application will be accepted from an entity against an Expression of Interest under this scheme.
- Expansion/ up gradation of existing facility(ies) is not eligible under this
- Entities or promoter(s) of entities who have availed financial assistance for food irradiation unit earlier under this Scheme of the Ministry will be eligible for grant-in-aid as on date of application only after two years from the date of commercial operation of the previous project.
- Entities or promoter(s) of entities who have availed financial assistance under another scheme (any scheme other than the scheme under which application is being made) of the Ministry will be eligible for grant-in-aid as on date of application only after two years from the date of commercial operation of the previous project.
- Provided that an entity or promoter(s) of an entity shall not be eligible for financial assistance for more than two projects during a period of 10 years.
Processing Fee:
The entities applying for financial assistance are required to submit a non-refundable fee of Rs.20,000/- (Rupees twenty thousand only) through Demand Draft in favour of “Pay and Accounts Officer, Ministry of Food Processing Industries, New Delhi”
The non-refundable fee shall be Rs.15,000/- (Rupees fifteen thousand only) for applications from SC/ST.
Applicability:
The revised guidelines received in response to the Expression of Interest (EOI) issued by the Ministry for new proposals under the Scheme for establishing food irradiation units only. Latest Guidelines issued on Dt-06.08.2024.
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