Food processing ministry rolls out EOI for PLI scheme


The ministry of food processing, on Monday, invited expression of interest from companies for availing incentives under the recently announced Production-linked Incentive (PLI) scheme for the sector with an outlay of Rs 10,900 crore over next six years. The last date for submitting proposal is June 17, 2021.

The incentive will be 6-10% on first year and 4-8% on sixth year on incremental sale. Base year for calculation of incremental sales would be 2019-20 for the first 4 years and for subsequent two years, it would shift to 2021-22 and 2022-23, respectively.

The scheme has been announced for three categories of food processing companies – aimed at expanding the domestic capacity for food processing and potentially generate additional Rs 33,500 crore worth of processed food.


According to the guidelines, under the category- I, large entities with minimum turnover of Rs 500 crore for ready to cook/ready to eat (RTC/RTE) food, Rs 250 crore for processed fruits and vegetables, Rs 600 crore for marine products and Rs 150 crore for mozzarella cheese are eligible for the scheme.

“Similarly, the minimum investment for these large entities has been fixed at Rs 100 crore for RTC/RTE, Rs 50 crore for processed fruits and vegetables, Rs 75 crore for marine products and either 10 tonne per day capacity plant or Rs 23 crore for mozzarella cheese,” said a food processing ministry official.

The second category is for registered small and medium enterprises with minimum sales of Rs 1 crore during 2019-20 for each of the innovative/organic products. Only Apeda-registered organic products are eligible under PLI scheme.

Under category -III, PLI would be granted for undertaking branding and marketing activities abroad include only Indian brands completely manufactured in India.

“Branding and marketing shall be undertaken either by the applicant directly or through its subsidiary or any other agency,” the official said.

The scheme aims to incentivise food products such as potato fries, tikki, etc. (potato chips excluded), table sauces, pasta sauces, cooking sauces, dry sauces, ketchup, mustard, oyster sauces, salad dressings, dips, and other sauces and all fruit based jam/jellies.

“However, companies making products in categories such as pizza, pasta, noodles, spaghetti, breakfast cereals, confectionery, malt-based drinks, soft drinks, aerated water, packaged nuts, among others, besides staples are not eligible to apply,” the official said.

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