25% Food Subsidy


25% Food Subsidy 

Pattern of Assistance

The scheme envisages financial assistance as grant-in-aid as per the following pattern:

  • 25 per cent of the cost of Plant & machinery and technical civil works, subject to a maximum of Rs. 50 lakh in general areas
  • 33.33 per cent of the cost of Plant & machinery and technical civil works, subject to a maximum of Rs. 75 lakh in difficult areas (i.e. Jammu & Kashmir, Himachal Pradesh, Uttarakhand,Andaman & Nicobar Islands and Lakshadweep) and Integrated Tribal Development Project (ITDP) areas.
  • 50 per cent of the cost of Plant & machinery and technical civil works, subject to a maximum of Rs.100 lakh for North Eastern States including Sikkim.


Eligible organisation/ Persons:

All Organizations such as Government / PSUs/ Joint Ventures/ NGOs/ Cooperatives/ SHG’s/ Private Sector/ individuals engaged in establishment/ Upgradation/ modernization of food processing units are eligible for financial assistance under the scheme.

Eligible Sectors:

Food processing industries like fruits & vegetables, milk/ meat/ poultry/ fish products, cereal/ other consumer food products, rice/ flour/ pulse/ oil milling and such other agri-horti sectors including food flavours, colours, oleoresins, spices, coconut, mushrooms , wines and hops are covered for assistance under the Scheme. The activities of aerated water, packaged drinking water and soft drinks will not be considered for financial assistance under the Scheme.

Documents Required

Documents required for availing Grant in aid:

  • Application in the prescribed format (Annexure-III).
  • Detailed Project Report (DPR).
  • Sanction letter of term loan from bank / financial institutions, if any.
  • Appraisal report from Bank / Financial Institution.
  • Certificate of incorporation/registration of the organization, Memorandum and Articles of Association and Bye laws of the society (if applicable)/ partnership deed etc.
  • Bio-data/ background of the office bearers/promoters of the organization.
  • Annual reports and Audited Statement of Accounts of last three years, in case of expansion / upgradation proposals/cases.
  • Blue Print of the building Plan.
  • Notarized English version of land document (in case it is in any of the regional languages).
  • Item wise and cost wise details of Technical civil works envisaged duly certified by Chartered Engineer (Civil).
  • Item wise and cost wise details of Plant & Machinery envisaged duly certified by Chartered Engineer (Mechanical).
  • Quotations from the suppliers of Plant & machinery and equipments etc. required for the project.
  • Marketing strategy.
  • Process Flow diagram.
  • SSI/ IEM registration etc.
  • Implementation schedule indicating (a)date of acquiring land (b) date of start of construction of building (c) date of completion of building (d) date for placing order for plant & machinery(e) date of installation/erection (f) date of trial production/ running and (g)date of commercial production/ running.
  • An affidavit duly executed on non-judicial stamp paper of Rs.100/- or more duly notarized by Notary Public affirming that
    • organization’s sister concern (s)/ related company / group company as well as the applicant company itself availed any financial assistance for a food processing project in the past from the Ministry of Food Processing Industries (MoFPI) or not, if yes, the details thereof.
    • Organization has not obtained/applied for or will not obtain any grant/subsidy from any Ministry/ Department of Central Govt/ GOI organization/agencies and State Govt. for the same purpose/activity /same components. If yes, the details there of.

Release of Grants

Release of grant: The grant-in-aid will be released in two equal instalments:

Release of 1st Installment:

The first installment of grant would be released after the firm has utilized 50% of the term loan as well as 50% of promoter’s contribution and on production of all relevant documents specified in the Guidelines.

Release of 2nd Installment:

The second installment of the grant is released only after confirming the commencement of commercial production through physical verification by the State Mission Directorate of NMFP and submission of all the documents specified in the Guidelines.