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Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)

Updated: Apr 18



The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Central Sector Scheme - "Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)" to support creation of global food manufacturing champions commensurate with India's natural resource endowment and support Indian brands of food products in the international markets with an outlay of Rs. 10900 crore.


Eligibility


Benefits of this scheme to:

  1. Four food product segments:

  2. Ready to cook / Ready to Eat (RTC/RTE) including millet based foods.

  3. Processed Fruits & Vegetables

  4. Marine Products

  5. Mozzarella Cheese

  6. Two Categories of person

  7. Large Manufacturers

  8. Small and Medium Enterprises

  9. Two Incentive

  10. Incentive on sales

  11. Incentive for branding and marketing including in store branding and shelf space


Sector: Ready to cook / Ready to Eat (RTC/RTE) including millet based foods


Eligibility

Large Manufacturers : Minimum Sales : 500 Crore and Minimum Investment: 100 Crore

Small and Medium Enterprises: Innovative/ Organic Product as approved by department


Rate of Incentive on sales:

Year [2021-22, 2022-23, 2023-24, 2024-25] : 10 % on incremental sales over the base year 2019-20

Year [2025-26] : 9 % on incremental sales over the base year 2021-22

Year [2025-26] : 8 % on incremental sales over the base year 2022-23


Incentive for branding and marketing: 50% grant on the expenditure made by each company subject to a limit of 3% of turnover or Rs 50 crore per year, whichever is less.


Sector: Processed Fruits & Vegetables

Large Manufacturers : Minimum Sales : 250 Crore and Minimum Investment: 50 Crore

Small and Medium Enterprises: Innovative/ Organic Product as approved by department


Rate of Incentive on sales:

Year [2021-22, 2022-23, 2023-24, 2024-25] : 10 % on incremental sales over the base year 2019-20

Year [2025-26] : 9 % on incremental sales over the base year 2021-22

Year [2025-26] : 8 % on incremental sales over the base year 2022-23


Incentive for branding and marketing: 50% grant on the expenditure made by each company subject to a limit of 3% of turnover or Rs 50 crore per year, whichever is less.


Sector: Marine Products

Large Manufacturers : Minimum Sales : 600 Crore and Minimum Investment: 75 Crore

Small and Medium Enterprises: Innovative/ Organic Product as approved by department


Rate of Incentive on sales:

Year [2021-22, 2022-23, 2023-24, 2024-25] : 6 % on incremental sales over the base year 2019-20

Year [2025-26] : 5 % on incremental sales over the base year 2021-22

Year [2025-26] : 4 % on incremental sales over the base year 2022-23


(10% Incentive rate for Value Added Marine products for all 6 years)


Incentive for branding and marketing: 50% grant on the expenditure made by each company subject to a limit of 3% of turnover or Rs 50 crore per year, whichever is less.


Sector: Mozzarella Cheese

Large Manufacturers : Minimum Sales : 150 Crore and Minimum Investment: 10 MTPD plant - 23 Crore

Small and Medium Enterprises: Innovative/ Organic Product as approved by department


Rate of Incentive on sales:

Year [2021-22, 2022-23, 2023-24, 2024-25] : 10 % on incremental sales over the base year 2019-20

Year [2025-26] : 9 % on incremental sales over the base year 2021-22

Year [2025-26] : 8 % on incremental sales over the base year 2022-23


Incentive for branding and marketing: 50% grant on the expenditure made by each company subject to a limit of 3% of turnover or Rs 50 crore per year, whichever is less.



Response of major industry leaders for products under PLI:

The scheme has been well received by the Industry including Nestle, ITC, Britannia, KeventerAgro, and Amul.


What kind of value addition will be brought in by the PLI:

New types of industries, encouragement to MSMEs/ancillarisation etc.: As the incentive is based on sales, subject to minimum investment, higher value addition is inbuilt in the scheme. Further, product specific incentive is extended for value added Marine products viz. Canned, Battered & breaded, Pickles, Sausages etc.

Role of contract Manufacturing has been recognized under the scheme and the scheme provides for Investment criteria to be met by the food majors and their contract manufacturers jointly. These products are extended 10% incentives for all the six years of scheme duration. Small and medium enterprises (SME), in the four segments will also be supported for manufacture innovative and organic products. This segment has been earmarked an outlay of Rs. 250 crore. The scheme envisages for holistic development of the sector.