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

 a) The processing activities undertaken by the individual units cover a wide range of post-harvest processes resulting in value addition and/or enhancing shelf life with specialized facilities required for the preservation of perishables.

b) While the expansion of processing capacity is necessary to increase the level of processing and reduce wastage, the induction of modern technology is intended to make a clear difference in terms of process efficiencies as well as improve the quality of the end product.

c) The scheme is implemented through organizations such as Central & State PSUs/ Joint Ventures/ Farmer Producers Organization (FPOs)/ NGOs/ Cooperatives/ SHG’s/ Pvt. Ltd companies/ individuals proprietorship firms engaged in establishment/upgradation/ modernization of food processing units.

d) Proposals for seeking assistance under the scheme are invited through the Expression of Interest from time to time.

e) Applicants must submit their loan applications to the banks for appraisal and sanction of the term loan for the projects before filing applications under this scheme. 

f) Grant is released in two installments each @50% of the grant.

The objective of the Scheme

The CEFPPC Scheme’s main objective is to create processing and preservation capacities and
modernize or expand existing food processing units to help them:

a) Increase the level of processing.
b) Increase value addition.
c) Reduce wastage.
d) Enhance farmers’ income.

Eligibility Entity

1. Any Organisation or an individual engaged in or that plans to engage in the creation/expansion/modernization of food processing and preservation capacities.

2. Proposals received from SC/ST holding at least 51% stake in the entity, will be treated as SC/ST proposals.

Eligibility Criteria

The minimum eligible project cost will be Rs.3 Crore for proposals in General Areas and Rs.1 Crore
in case of proposals from Difficult Areas and for SC/ST proposals.

Eligible Sectors

The eligible food processing sectors under the CEFPPC scheme are-

a) Fruits and vegetable processing.

b) Meat/fish/poultry processing.

c) Milk processing.
 
d) Ready-to-eat, breakfast cereals, ready-to-cook food products, bakery, snacks, and other food products, including nutritional health foods. 

e) Grains, pulses, modern rice milling, oil-seed milling, and processing based on modern technology. 

f) Other Agri-Horti products, including soybean, spices, mushroom processing, coconut, honey processing, etc. 

g)Natural food flavors, food extracts, and colors, food additives, guar gum, oleoresins, cocoa products, etc. 

h) Any other sector that makes food products.

Benefits of the Scheme for Pharma Sector MSMEs

The CEFPPC scheme provides financial assistance in the form of grant-in-aid for the food processing units as follows:

a) In general areas – 35% of the eligible project cost, subject to a maximum of Rs.5 crore.

b) In North-Eastern states and difficult areas – 50% of the eligible project cost, is subject to a maximum of Rs.5 crore.
North-Eastern states include Sikkim, and the difficult areas include.

c) Himalayan states/UTs (Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh).

d) State Notified ITDP (Integrated Tribal Development Projects) areas.

e) Islands (Lakshadweep and Union Territories of Andaman and Nicobar).