Food Industries CEFPPC Scheme

The Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC)

Introduction:

The CEFPPC scheme is designed to promote the establishment and modernization of food processing units. By creating and enhancing processing capacities, the scheme aims to increase the level of processing, add value to agricultural produce, and decrease food losses, ultimately enhancing farmers' income.

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Objectives:

‍The primary goal is to establish robust processing and preservation capacities. These improvements are expected to lead to increased levels of processing, value addition, and a reduction in food loss, thereby enhancing the incomes of farmers and contributing to the growth of the food processing sector.

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Quantum of Assistance :

‍The scheme offers substantial financial support, providing grants up to ? 35% of the eligible project cost for projects in General Areas.? 50% of the eligible project cost for projects in Difficult Areas, or for projects that are promoted by SC/ST entrepreneurs, Farmer Producer Organizations (FPOs), or Self-Help Groups (SHGs).

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Maximum Subsidy Limit :

The maximum subsidy for any project is capped at 5crore.

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Conditions for Subsidy Disbursement:

‍The subsidy is provided as grants-in-aid, meaning it is given based on specific criteria being met by the projects.? It is applicable only for eligible project components, such as the creation or expansion of food processing and preservation capacities. Subsidy disbursement is linked to achieving milestones and the physical progress of the project.

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Eligible Sectors :

‍Projects must be related to the processing and preservation of various types of agricultural produce.

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Fruits and Vegetables Processing:

This can include facilities for cleaning, grading, sorting, packaging, and more advanced processing like juicing, pureeing, and concentrate production.

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Milk Processing :

Projects related to the processing of milk into products like cheese, yogurt, milk powder, and other dairy items.

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Meat, Poultry, and Fish Processing :

Facilities for the processing of meat products, including slaughtering, deboning, packing, and production of value-added products.

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Ready-to-Eat/Cook Products :

Manufacturing of convenience food products like snacks, breakfast cereals, bakery items, and other ready-to-eat or ready-to-cook food products.

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Grains/Pulses/Oilseed Milling :

Modern milling facilities for grains, pulses, and oil seeds, enhancing food safety and quality.

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Modern Rice Milling :

Projects that involve the establishment or modernization of rice milling.

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Other Agri-Horti Products :

This includes spices, coconut, soybean, mushroom processing, honey processing, and similar sectors.

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BeverageMaking :

Includes the production of fruit or honey-based wines and other beverages.

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Natural Food Flavors and Additives :

Facilities for the production of food flavors, additives, food extracts, colors, oleoresins, guar gum, and cocoa products.

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Jaggery and Value-Added Products :

Projects focusing on manufacturing jaggery from sugarcane and its value-added derivatives. They must involve activities like sorting, grading, packaging, preservation, and include necessary infrastructure like controlled temperature.

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Implementation Period :

‍The projects must be completed within specific timelines to ensure efficient use of resources and timely benefits realization. The standard project completion period is set at 18 months, with provisions for extensions under certain conditions, such as force majeure events.

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Eligibility Criteria :

‍Eligibility extends to organizations and individuals planning to create or expand food processing and preservation capacities. This includes entities in the SC/ST category holding significantstakes, reflecting a focus on inclusive economic growth.

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Application and Documentation :

‍Applications must be submitted online, with comprehensive documentation including project reports, financial statements, and detailed plans. This rigorous documentation process ensures that only viable projects that align with the scheme’s goals receive funding.

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Procedure for Disbursement and Appeals :

‍Financial disbursements are linked to project milestones, and the scheme includes a structured process for handling appeals related to funding decisions. This ensures transparency and fairness in financial management.

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Conclusion:

The CEFPPC scheme is a strategic initiative to bolster India’s food processing sector by enhancing processing capacities and infrastructure. Byproviding financial incentives and clear guidelines, the scheme aims to reduce food wastage, improve farmer incomes, and promote sustainable growth in thefood processing industry.

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Rapid Consulting's Role in Facilitating the Process :

‍Rapid Consulting could offer specialized services to assist various entities in establishing infrastructure for food processing and preservation under the CEFPPC scheme. They can guide stakeholders such as government departments, PSUs, NGOs, cooperatives, SHGs, private companies, and FPOs through the eligibility criteria, application process, and compliance with the scheme’s guidelines. Their support aims to maximize financial incentives and ensure efficient project implementation.

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Impact of the Scheme on Industrial Growth :

‍The CEFPPC scheme aims to boost the food processing sector by creating and expanding preservation capacities and modernizing existing units. This is expected to increase the level of processing, enhance value addition, and lead to a reduction in food waste, thereby improving farmers' incomes and creating jobs.

Future Prospects and Enhancements :

‍Future enhancements may include broadening the types and numbers of facilities supported, increasing the financial support limits, and expanding eligibility criteria to encompass more types of food processing initiatives. Integrating this scheme with other agricultural and industrial development programs could also offer more comprehensive support and accelerate growth in the sector.

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FAQs :

What is the Scheme for Creation/Expansion of Food Processing & Preservation Capacities ?

This scheme supports the establishment and expansion of food processing and preservation capacities to reduce food loss and enhance farmer income.

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Who is eligible for this scheme ?

Entities involved in sectors like fruits and vegetables processing, dairy, and various other food products are eligible, including government departments, PSUs, cooperatives, private sector companies, NGOs, SHGs, and FPOs.

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How does anentity apply for this scheme?

Applications must be submitted online through a designated portal, with required documents such as detailed project reports and financial statements demonstrating compliance with the scheme's eligibility criteria.

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What are the financial benefits of participating in this scheme ?

Eligible projects can receive grants covering up to 35% to 50% of the total project cost, depending on the location and nature of the applicant entities, with a maximum grant limit specified by the scheme.

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What happens if incorrect information is provided in the application ?

Providing incorrect or fraudulent information may lead to the cancellation of financial support and repayment of the grants with interest.

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How does Rapid Consulting assist in this process ?

Rapid Consulting helps applicants effectively navigate the scheme’s requirements, from application through to final approval and implementation, ensuring avoidance of common pitfalls and efficient management of documentation and compliance requirements.

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Target Sectors in India :

‍The initiative by the Ministry of Food Processing Industries under the Pradhan Mantri Kisan Sampada Yojana aims to enhance food processing units by creating and expanding processing and preservation capacities. This includes modernization and expansion of existing units across various sectors such as fruits & vegetables, milk, meat, poultry, fish, ready-to-eat products, grains, pulses, and more. The scheme aims to increase processing levels, add value, and reduce food loss, thereby enhancing farmers' income.

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Eligibility for Existing Businesses and New Ventures :

‍Entities eligible for this scheme include individual entrepreneurs, private and public companies, Farmer Producer Organizations (FPOs), and cooperatives, among others. Eligibility extends to any organization engaged in or planning to engage in the creation or expansion of food processing and preservation capacities. Proposals from Scheduled Caste (SC) or Scheduled Tribe (ST) entities holding a significant stake are also encouraged.

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Integration with Other Subsidies and Incentives :

‍The scheme allows integration with other government incentives and subsidies, particularly focusing on investments in difficult areas such as the North east and Himalayan states. Financial assistance under this scheme includes capital investment subsidies with enhanced subsidies for special areas, promoting the adoption of advanced food processing technologies and infrastructure.

Application Process :

‍The application process requires online submission through the Sampada Portal, including detailed project reports, financial plans, and compliance certificates. Projects undergo a technical appraisal to ensure they meet the ministry's standards, which are crucial for qualifying for financial assistance.

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Geographical Preferences in India :

‍The scheme prioritizes geographical areas that produce a high volume of perishable goods to develop infrastructure aimed at reducing post-harvest losses and improving the quality of produce. This focus is critical for sustaining the viability and enhancing the profitability of agricultural operations in these regions.

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Why Choose Rapid Consulting ?

Specialized Expertise:

Our team at Rapid Consulting boasts in-depth knowledge 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 comprehensive servicepackage covers every aspect of the subsidy acquisition process.

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Initial Assessment :

We commence with an in-depth evaluation of our client's business requirements and objectives. Through meticulous analysis, we determine eligibility criteria and assess the feasibility of the subsidy application.

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Documentation Preparation :

Our team aids in compiling all requisite documentation essential for the subsidy application. This includes gathering financial statements, project particulars, investment plans, and any other pertinent information needed for submission.

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Application Management :

We oversee the entire application procedure, ensuring that all documents are accurately completed and submitted within stipulated timelines. Our experts maintain communication with relevant governmental bodies and agencies to streamline the application process.

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Negotiation and Follow-up :

In the event of inquiries or requests for additional information from authorities, we engage in negotiations on behalf of our clients. We strive to provide prompt responses and furnish any further documentation required.

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Subsidy Disbursement :

Upon approval of the application, we facilitate the smooth disbursement of the subsidy amount to our clients. We ensure all procedural formalities are meticulously completed to ensure timely fund release.

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Post-Subsidy Assistance :

Our support extends beyond subsidy acquisition. We continue to provide ongoing assistance to our clients, aiding with compliance obligations, reporting mandates, and addressing any post-subsidy concerns that may arise. With Rapid Consulting, clients can trust our expertise and experience to navigate the intricacies of the food industry subsidy schemes effectively. We are dedicated to maximizing benefits.

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