Creation of Backward & Forward Linkage Sampada Yojna

Scheme for Creation of Backward and Forward Linkages

Introduction : ‍

revised guidelines pertain to the Scheme for Creation of Backward and Forward Linkages, launched by the Ministry of Food Processing Industries. This scheme addresses the need for enhanced capacity utilization of food processing units through the establishment of robust supply chains, ensuring a regular supply of raw materials and efficient market linkages.

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Objectives :

‍The objective of the scheme is to enhance the processed food industry's efficiency by creating effective and seamless backward and forward integrations. This integration helps in plugging supply chain gaps, improving raw material availability, and ensuring better market linkages, thus securing remunerative prices for produce and processed goods.

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Quantum of Assistance :

‍Financial assistance under the scheme is substantial, with grants covering 35% of the eligible project cost in generalareas and up to 50% in North-Eastern and Himalayan states, Islands, and ITDP areas, with a cap of 5 crore per project. This support aims to incentivize the creation of necessary infrastructure for comprehensive supply chain development.

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Eligible Activities :

‍The scheme supports a wide range of activities –

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Backward Linkage :

This includes the setup of integrated pack-houses,milk chilling centres, pre-cooling units, reefer boats, and machinery forminimal processing.

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Forward Linkage :

This involves the establishment of retail chainsfor perishable food products and distribution centres.

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Transport :

Provision for refrigerated and insulated transportto maintain the integrity of perishable goods from farms to retail outlets.

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Implementation Period :

‍The implementation schedule is strictly defined,with projects needing to be completed within 18 months for general areas and 20months for special areas like the North-Eastern States and Himalayan regions.This timeframe ensures timely realization of project benefits.

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Eligibility Criteria :

‍Eligible entities include promoters of foodprocessing units, entrepreneurs, co-operatives, Farmer Producer Organizations(FPOs), and others linked to the food processing supply chain. This broadeligibility is designed to encourage participation from various stakeholders inthe food processing industry.

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Application and Documentation :

‍Applicants must submit detailed project reports andvarious certifications as part of the application process. This rigorousdocumentation requirement ensures that only feasible and well-planned projectsreceive funding.

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Procedure for Disbursement and Appeals :

‍The grant is disbursed in three installments. The first installment is 25% of the approved grant, released upon verification that 25% of the promoter’s contribution and the term loan have been spent on the eligible project cost. The second installment, 40%, is released after verifying the use of the first installment and ensuring that 65% of the promoter's contribution and term loan have been used. The final 35% is released after verifying the completion of the project and the start of commercial operations. This staged disbursement ensures the proper use of funds and compliance with project goals. An appeals process is in place for grievances related to funding decisions.

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Conclusion :

‍The revised guidelines for the Scheme for Creation of Backward and Forward Linkages represent a structured approach to enhancing the capacity utilization of the food processing industry. By addressing supply chain inefficiencies, the scheme aims to improve the operational efficiency and market connectivity of food processing units across India, thereby boosting their productivity and profitability.

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Rapid Consulting's Role in Facilitating the Process:

‍Rapid Consulting could provide essential services to help organizations establish infrastructure for backward and forward linkages in the food processing industry. They could guides take holders including government departments, PSUs, NGOs, cooperatives, SHGs, private companies, and FPOs, through the eligibility requirements of the scheme. Their services include assisting with application preparation and submission, and ensuring compliance with the scheme’s guidelines. Their support would be aimed at maximizing financial incentives and ensuring efficient project implementation.

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Impact of the Scheme on Industrial Growth :

‍The scheme is designed to enhance the foodprocessing sector by developing infrastructures such as integrated pack-houses,cold storages, and retail outlets, as well as connecting these throughrefrigerated transport. By creating these facilities, the scheme encouragesentrepreneurs to establish food processing units that integrate both backwardand forward linkages, thus minimizing loss of perishables, adding value toagricultural products, increasing farmer incomes, and creating employmentopportunities.

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Future Prospects and Enhancements :

‍Future enhancements could include broadening thetypes and numbers of facilities supported, increasing the financial support limits,or expanding eligibility criteria to include more kinds of food processinginitiatives. Further integration with other agricultural and industrialdevelopment programs might also provide more comprehensive support andaccelerate growth in the sector.

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FAQs

What is the Scheme for Creation of Backward andForward Linkages ?

This scheme supports the establishment ofinfrastructures that integrate both the supply of raw materials and themarketing of finished products within the food processing industry.

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Who is eligible for this scheme ?

Eligible entities include government departments,PSUs, cooperatives, private sector companies, NGOs, SHGs, FPOs, and othersinvolved in the food processing industry.

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How does an entity apply for this scheme ?

Applications must be submitted online through thedesignated portal, with detailed project reports and financial statementsdemonstrating compliance with the scheme's eligibility criteria.

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What are the financial benefits of participating inthis scheme ?

Projects can receive grants covering up to 35%to 50% of the eligible project cost, depending on the location and natureof the applicant entities, with a maximum grant of up to Rs. 5 crore.

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What happens if incorrect information is providedin the application ?

Incorrect or fraudulent information may lead tocancellation of financial support, and repayment of the grants with interestmay be required.

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How does Rapid Consulting assist in this process ?

Rapid Consulting ensures that applicants navigatethe scheme's requirements effectively, from application through final approvaland implementation, helping to avoid common pitfalls and efficiently managedocumentation and compliance requirements.

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Target Sectors in India :

‍The initiative by the Ministry of Food ProcessingIndustries to enhance the food processing units includes creating backward andforward linkages aimed at increasing capacity utilization by ensuring a steadysupply of raw materials. This comprehensive scheme also involves setting upprimary processing centers and modern retail outlets, which are connectedthrough insulated and refrigerated transport.

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Eligibility for Existing Businesses and New Ventures :

‍Entities eligible for this scheme include promoters of food processing units, entrepreneurs, and producer groups like Co-operatives and Farmer Producer Organizations. The eligibility criteria also extend to retailers linked to farm-level infrastructure or processors, emphasizing the integration of various take holders in the food processing value chain.

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Integration with Other Subsidies and Incentives :

‍The scheme offers financial assistance in the form of capital investment subsidies, with enhanced subsidies available for projects in special areas such as the Northeast and Himalayan states. These incentives are designed to encourage investments in modern food processing technologies and infrastructure, thereby boosting overall efficiency and productivity.

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Application Process :

The application process requires a detailed project report and a credit-linked project that meets the technical standards set by the ministry. Applicants must demonstrate compliance with these standards through a technical appraisal to qualify for financial assistance, reflecting the program's emphasis on maintaining high-quality infrastructure development.

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Geographical Preferences in India :

‍Priority is given to developing infrastructure in regions where there is a high production of perishable horticultural products. This strategic focus is intended to reduce post-harvest losses and improve the quality of the produce, which is critical for maintaining the viability and sustain ability of agricultural operations in these areas.

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Why Choose Rapid Consulting ?

Specialized Expertise :

Our team at Rapid Consulting boasts in-depthknowledge of subsidy schemes, ensuring you get the most out of your investment.

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End-to-End Assistance :

From initial assessment to final application, we manage the entire process, making it seamless and hassle-free for your business.

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Maximized Benefits :

We ensure that you fully leverage the financial incentives available, boosting your company's growth and profitability .Our services encompass the entire process, ensuring a smooth and successful subsidy application.

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Initial Consultation :

We start by understanding the client's objectives and assessing their eligibility for the subsidy scheme.

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Documentation Assistance :

Our team helps prepare all necessary documentation required for the subsidy application, ensuring accuracy and completeness.

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Application Management :

We manage the entire application process, liaising with government authorities and agencies on behalf of our clients.

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Negotiationand Follow-up :

In case of queries or additional requirements from the authorities, we handle negotiations and provide prompt responses.

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Subsidy Disbursement :

Upon approval, we assist in facilitating the disbursement of the subsidy amount to our clients.

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Post-Subsidy Support :

We offer ongoing support to clients, assisting with compliance requirements, reporting obligations, and any other post-subsidy concerns.

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At Rapid Consulting, our goal is to maximize the benefits for our clients and facilitate the growth and development of food processing industries through efficient subsidy acquisition. With our expertise and experience, clients can trust us to navigate the complexities of the subsidy application process and achieve their business objectives effectively.

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How to Reach Us ?

Website : Visit our official website for detailed information, service offerings, and to schedule an online consultation.

Direct Contact : Call us at +91-9467248028 / 9416506136 or

email info@rapidconsulting.in to discuss your needs directly with our experts.

Office Visit : Our offices are open for in-person consultation

sat 134, Rapid Consulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001.

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Here, you

can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.

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SAMPADA yojna in haryana, SAMPADA yojna in hisar