Sarkari Yojana
Production Linked Incentive (PLI) Scheme for Food Processing Industry
About Production Linked Incentive (PLI) Scheme for Food Processing Industry
The Ministry of Food Processing Industries, Government of India, runs the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) to help build globally competitive Indian food manufacturers, promote Indian food brands, generate more off-farm employment, and secure better prices for farm produce and higher farmer incomes. A Project Management Agency (PMA) handles application processing, verification, and disbursement on the Ministry’s behalf. The scheme runs for six years, from Financial Year 2021-22 to Financial Year 2026-27, with the incentive earned in any given year paid out the following year — for instance, the incentive for 2026-27 falls due in 2027-28. > Components:
- These goals are pursued through a Production Linked Incentive (PLI) mechanism built around three broad components.
- The first covers incentivising manufacture within four major food product segments: Ready to Cook/Ready to Eat (RTC/RTE) foods, including millet-based foods, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese.
- The second incentivises Innovative/Organic products made by SMEs across those same four segments, including Free Range Eggs, Poultry Meat & Egg Products.
- The third supports branding and marketing abroad to help strong Indian food brands emerge.
Scheme Overview
Central Government
Ministry of Food Processing Industries
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Production Linked Incentive (PLI) Scheme for Food Processing Industry, applicants must satisfy the following conditions:
Only Applicants manufacturing food products in India and…
Only Applicants manufacturing food products in India and selling them under the target Segments qualify for support; SME Applicants must be engaged in manufacturing innovative/organic food products to qualify.
Total Sales and Minimum Investment thresholds differ by…
Total Sales and Minimum Investment thresholds differ by Applicant Category, as set out in Appendix A. An Applicant's total food product sales in the Base Year must exceed the minimum given there, with "food products" here meaning any food product sold in consumer packs, including those in the four segments listed in Appendix B. The Applicant must also commit to the minimum investment specified in Appendix A; where a segment draws more applicants than the number to be finally selected, the selection criteria weigh the committed investment the applicant proposes to make by the end of the year 2022-23, which must exceed the Minimum investment given in Appendix A.1. Appendix B lists the Product Groups/Products falling under each Segment used for selecting Applicants.1. Applicants must state, in their Application, the Segment and the Product Groups within it for which they seek coverage.
An Applicant may also list products it does…
An Applicant may also list products it does not currently manufacture but plans to during the project period; once a selected entity begins manufacturing a new product within its approved Segment, it may be added later after notifying MOFPI/PMA.
The complete manufacturing chain, including primary processing, of…
The complete manufacturing chain, including primary processing, of food products in the segment applied for must take place in India, except that this condition does not apply to additives, flavours, and edible oils.
For food products included in the Application with…
For food products included in the Application with annual sales above Rs 50 crore, the Application must spell out the entire manufacturing chain starting from raw materials.
Applicants may apply for one or more Segments…
Applicants may apply for one or more Segments under Category I, but must file a separate Application for each product segment and satisfy the minimum Sales and investment criteria for every Segment applied for.
The Applicant must not have been declared bankrupt,…
The Applicant must not have been declared bankrupt, a wilful defaulter, a defaulter, or reported as fraudulent by any bank, financial institution, or non-banking financial company, and neither the Applicant nor its Promoters may appear on the SEBI Debarred List.
Note:
Category I: covers large entities applying for incentives based on Sales and Investment Criteria; these Applicants may also undertake Branding & Marketing activities abroad and claim incentives for that.- Category II: covers SME Applicants manufacturing innovative/organic products who apply for PLI Incentive based on Sales.- Category III: covers Applicants applying solely for the incentive tied to Branding & Marketing activities abroad.
Benefits Provided
Production Linked Incentive (PLI) Scheme for Food Processing Industry provides the following benefits to eligible applicants:
Incentive:
"Investment" here refers to spending by the Applicant…
"Investment" here refers to spending by the Applicant and its contract manufacturers on installing new plant and machinery, technical civil work, and related infrastructure, inclusive of all non-creditable taxes and duties.
The incentive formula is:
Incremental Sales × Applicable Rate of Incentive.1. Incentive rates differ by segment and by year:
Ready-to-Cook/Ready-to-Eat and Processed Fruits & Vegetables: starting at 10% and tapering down to 8%.
Marine Products: 6% down to 4% (10% for value-added marine products).
Mozzarella Cheese: 10% down to 4%.
Incentives run from the year of selection through…
Incentives run from the year of selection through to the end of the scheme period.
Eligibility for the incentive in a given year…
Eligibility for the incentive in a given year requires meeting the minimum Compound Annual Growth Rate (CAGR) in sales. Branding and Marketing:
Financial support is available to promote Indian brands…
Financial support is available to promote Indian brands in overseas markets.
50% of expenditure incurred on branding and marketing…
50% of expenditure incurred on branding and marketing activities is reimbursed under the scheme.
This support cannot exceed 3% of sales of…
This support cannot exceed 3% of sales of food products or ₹50,00,00,000/- per year, whichever is lower.
To claim the incentive, expenditure over a period…
To claim the incentive, expenditure over a period of 5 years must total at least ₹5,00,00,000/-.
Eligible activities span in-store branding, shelf space rental,…
Eligible activities span in-store branding, shelf space rental, listing fees, media advertising, and promotional campaigns. Coverage of Multiple Food Segments:
Incentives cover manufacturing and sales in these segments
Incentives cover manufacturing and sales in these segments:
Ready-to-Cook / Ready-to-Eat food products (including millet-based products)
Processed Fruits and Vegetables
Marine Products
Mozzarella Cheese
Innovative and Organic products made by SMEs
Documents Required
Applicants should keep the following documents ready before starting the application:
A completed Application Form, following the format in…
A completed Application Form, following the format in Annexure-1
An undertaking consenting to audits of manufacturing sites/offices,…
An undertaking consenting to audits of manufacturing sites/offices, as per Annexure-7
Details of manufacturing sites, both owned and contract…
Details of manufacturing sites, both owned and contract manufacturing units
Details of the shareholding pattern
Details of the shareholding pattern
The Memorandum and Articles of Association, Partnership Deed,…
The Memorandum and Articles of Association, Partnership Deed, or Registration Certificate
Annual financial statements and reports
Annual financial statements and reports
Sales data for eligible food products, covering the…
Sales data for eligible food products, covering the Base Year and later years
Details and proof of the committed investment
Details and proof of the committed investment
A Chartered Accountant Certificate verifying the sales claims
A Chartered Accountant Certificate verifying the sales claims
A Chartered Engineer Certificate verifying the investment, where…
A Chartered Engineer Certificate verifying the investment, where relevant
A bank guarantee equal to 3% of the…
A bank guarantee equal to 3% of the committed investment, to be furnished after approval
Any other supporting documents the Application requires or…
Any other supporting documents the Application requires or the EOI specifies
How to Apply
Online Application
Applicants can apply for Production Linked Incentive (PLI) Scheme for Food Processing Industry through the online application process outlined below.
Applications open through an Expression of Interest (EOI)…
Applications open through an Expression of Interest (EOI) issued by the Ministry of Food Processing Industries.
The applicant should review the EOI for the…
The applicant should review the EOI for the application window, eligibility norms, and categories, since nothing is accepted once the window closes.
The applicant should go to the online portal
The applicant should go to the online portal: https://plimofpi.ifciltd.com.
The applicant should complete the application on the…
The applicant should complete the application on the portal in the format prescribed under Annexure-1.
The applicant should provide details of both its…
The applicant should provide details of both its own and its contract manufacturers' sites proposed for sourcing eligible products.
The applicant should upload all required documents and…
The applicant should upload all required documents and file an undertaking (per Annexure-7) consenting to audits of manufacturing sites/offices.
The applicant should pay the non-refundable application fee
The applicant should pay the non-refundable application fee:
₹1,00,000/- for Category-I applicants
₹10,000/- for Category-II applicants
₹10,000/- (SMEs) and ₹50,000/- (other applicants) under Category-III
Once submitted, the Project Management Agency (PMA) generates…
Once submitted, the Project Management Agency (PMA) generates a unique Application ID for future reference.
Within 15 working days of receipt, the PMA…
Within 15 working days of receipt, the PMA carries out a preliminary examination of the application as per Annexure-2.
Should the application be incomplete, the applicant is…
Should the application be incomplete, the applicant is notified within 15 working days and given 10 working days to fix the deficiencies, failing which it is rejected.
PMA processes the application and forwards its recommendation…
PMA processes the application and forwards its recommendation to the Ministry of Food Processing Industries (MoFPI) for approval.
All applications are finalised within 90 days of…
All applications are finalised within 90 days of the application window closing, provided the documentation is complete.
Following approval, PMA issues an approval letter within…
Following approval, PMA issues an approval letter within 5 working days, covering details such as the product segment, base year sales, projected incremental sales, incentive rates, committed investment, and production schedule.
The selected applicant must furnish a performance bank…
The selected applicant must furnish a performance bank guarantee equal to 3% of the committed investment within 2 weeks of approval.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.