Food Processing Subsidy – Central Govt (MoFPI)
EOI – Deadline for filing Initial (First) Application
| Sl No | Particulars | Remarks |
| 01 | Name of the scheme | Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC) |
| 02 | Effect of the Circular | Submission of Proposals / Eol through the online portal on or before 05:00 PM on 28-03-2025. |
| 03 | Who are Eligible ? | Interested promoters / investors, willing to set up Infrastructure Projects in Food Processing Sector |
| 04 | When to Apply ? | From 10:00 AM of 28-01-2025 to 05:00 PM of 28-03-2025 |
| 05 | Last date to apply | On or before 05: 00 PM on 28-03-2025. |
| 06 | Govt Fee (Non-Refundable) | ₹ 20,000/- in the form of DD |
| 07 | DD Favouring | A Demand Draft (DD) to be submitted in favour of "Pay & Accounts Officer, Ministry of Food Processing Industries, New Delhi". |
| 08 | Timelines for submission of Original DD to MoFPI | The DD in original should reach the Ministry within 7 days from the submission of online application. |
| 09 | Submission of Manual / Physical Application | Ministry will not entertain. Only Online Application will be accepted. |
| 10 | Chances of Communication by the Ministry to the Applicant | Ministry will not keep any communication once application is submitted. Ministry will only Approve or Reject the case. Hence, we recommend to submit error free application. |
Central Food Ministry (MoFPI) - CEFPPC – Major Criteria
(Food Processing Unit Subsidy)
| Sl No | Particulars | Inputs |
| 01 | Scheme Announced on (Revised Guidelines) | 22-01-2025 |
| 02 | Scheme Period | 2021-22 to 2025-26 (5 Years) |
| 03 | Cut-off Date - Application Submission | 28-01-2025 to 28-03-2025 (60 Days) |
| 04 | Major Criteria's / Scheme Bottle Neck | No Civil Work, No Machinery Purchase, No Advances to Suppliers / Contractors before Ministry Approval. |
| 05 | Minimum Approval time required by Ministry | 6 to 9 Months |
| 06 | Chances for Approval |
1. Securing or Scoring More Marks 2. High Project Cost 3. Other than Rice Mill 4. Proper Net Worth Certificate 5. Final Bank Term Loan Sanction Letter 6 Proper Bank Appraisal Report 7. High Debt Service Coverage Ratio (DSCR) 8. Good Project Report Presentation before Ministry. |
Note - There are 50-50 chances for consideration of additional Food Processing Units / Proposals
Food Processing Subsidy – Central Govt (MoFPI)
Snapshot (Guidelines)
| Sl No | Particulars | Inputs |
| 01 | Scheme First EoI Date | 15-09-2017 |
| 02 | Scheme Latest EoI Date | 22-01-2025 |
| 03 | Last Date of Submission | 60 Days from the date of Expression of Interest (EoI) - (28-03-2025) |
| 04 | Project Location |
Anywhere outside MFP / APC. Unit should not be with in MFP / APC. |
| 05 | Subsidy Rate | 35% on Eligible Project Cost (Technical Civil Work and Eligible P&M excluding GST) with a cap of ₹ 5 Cr, whichever is lower Per Unit |
| 06 | Instalments | 2 Equal Instalments (50% each) |
| 07 | Submission of 1st Instalment documents - Cut-off Date & Stage | Submit documents after 50% utilization of “Promoter Contribution (Equity)” & “Term Loan (TL)”, but within 9 months from the date of “Ministry Approval”. |
| 08 | 1st Installment Inspection by Govt Authority (MoFPI) / PMA Consultants | Will carried out approx. in 30 days from the date of submission of 1st Installment Documents to Ministry. |
| 09 | Release of 1st Instalment | Once submission of Inspection Report by concerned Govt Officials / Agency, 1st Instalment will be released in 1 month (approx.), subject to availability of funds. |
| 10 | Submission of 2nd Instalment Documents - Cut-off Date & Stage | Submit documents after 100% utilization of “Promoter Contribution (Equity)” & “Term Loan (TL)”, but within 18 months from the date of “Ministry Approval”. |
| 11 | 2nd Installment Inspection by Govt Authority (MoFPI) / PMA Consultants & Banker | Will carried out approx. in 30 days from the date of submission of 2nd Installment Documents. |
| 12 | Release of 2nd Instalment | Once submission of Inspection Report by concerned Govt Officials / Agency, 2nd Instalment will be released in 1 month (approx.), subject to availability of funds. |
| 13 | Subsidy Fund Utilization | Subsidy will be kept in Grant-In-Aid Account and can be utilized for payments to “Vendors / Contractors” related to Project while its implementation |
Food Processing Subsidy – Central Govt (MoFPI)
Eligible Criteria’s
| Sl No | Particulars | Inputs |
| 01 | Land | Land Should be in the name of Applicant. If “Lease Land”, then 15 years “Lease Period” duly registered is required. |
| 02 | Term Loan (TL) | TL Date should be after Expression of Interest (EoI) announcement Date – Minimum TL Value should be 20% of Total Project Cost. |
| 03 | Eligible Project Cost | Minimum Eligible Project should be ₹ 3 Cr (Technical Civil + Machinery Cost excluding GST Value) |
| 04 | Restrictions | One family one proposal will be considered. Family will include all Members / Relatives. |
| 05 | Net worth | Minimum 1.5 times of Grant-in-Aid |
| 06 | Investment Made prior to Ministry Approval | Will not be considered as “Eligible Project Cost” to calculate Subsidy Amount. |
| 07 | Refundable Bank Guarantee (BG) | 5% BG on “Eligible Subsidy Amount” should execute on receipt of Ministry Approval Letter, but within 30 days from the date of Ministry Approval. BG Period should be 30 Months after submission of BG. |
| 08 | Stage of TL Disbursement | After getting Ministry Approval, Bank can disburse TL Amount. Thereafter only Project Civil Work, Purchase of Machinery and Advance to Vendors & Contractors can be start / made. |
| 09 | Evaluation Marks | As per “Ministry Evaluation Chart” minimum 60% of 85 Marks required to secure / achieve to make Project Eligible. |
| 10 | Project Completion | Within 24 months (Original 18 Months + 6 Months Extension) from the date of Ministry Approval including extended period with Penality Clause |
Central Food Ministry (MoFPI) - Application Process Timelines
(Food Processing Unit Subsidy)
| Sl No | Head | Timelines (TAT) |
| 01 | Application Starting Date | 28-01-2025 |
| 02 | Application Submission Last Date (Cut-off) | 28-03-2025 |
| 03 | Total days available for submission of Application | 60 Days |
| 04 | Time required for considering the case by Technical Scrutiny Committee (TSC) by Ministry. | 60 Days from 29-03-2025 |
| 05 | Time required for further consideration of proposal for IMAC, once TSC approves. | 30 Days |
| 06 | Time required to get Approval / Sanction form Ministry from the date of IMAC Decision | 30 Days |
| 07 | Approximate Total Time required to get Ministry Approval | 6 to 9 Months |
| 08 | The above timelines is figured out as per our previous experience with Ministry since Introduction of this scheme for additional timelines | 3 Months Grace Period – Safer Side |
Check List - CEFPPC- Central Govt (MoFPI)
I) Master (KYC) Documents
| Sl No | Particulars |
| 01 |
1 Partnership Firm - Registered Partnership Deed alongwith Firm Registration Copy 2 Pvt Ltd / Ltd - Articles & Memorandum of Association alongwith Certificate of Incorporation 3 Co-operative Societies - Bye-Laws alongwith Registration Certificate |
| 02 | TAN Certificate |
| 03 | PAN Card of Company |
| 04 | IEM Registration / Entrepreneur’s Memorandum / Udyog Aadhaar Registration |
| 05 | SC / ST Caste certificate (Whichever applicable) |
| 06 | Annual reports and Audited Financial Statement of Accounts and Income Tax Returns of for last two years (Applicable in case of Expansion / Upgradation Units) |
| 07 | Bio-data / Background / Experience of the entity relevant to the Scheme. |
II) Regulatory Certificates
| 01 | Registered Sale Deed / Lease deed (Lease Period 15 years) - English Version / Hindi Version |
III) Project documents - DPR
| 01 | Indicating Financial & Technical Profile of the Entity |
| 02 | Domain Expertise available with the entity |
| 03 | Raw Material availability in the area where project is proposed to be set-up |
| 04 | Arrangements for procurement of Raw material |
| 05 | Marketing Strategy of proposed products |
| 06 | Process Flow Diagram of proposed products with production capacity per day |
| 07 | Technology proposed for various activities in process line |
| 08 | Financial Estimates with key Financial Parameters |
| 09 | Profit & Loss Statement |
| 10 | Estimated employment generation from the project (direct as well as indirect) |
| 11 | Number of Farmers estimated to be benefited etc |
IV) Project Documents
| 01 | Quotations from Original Equipment Manufacturer or its Authorised Dealer / Supplier |
V) Financials / Commercial Documents
| 01 | Final Bank Term Loan Sanction Letter from a Scheduled Commercial Bank / NABARD / SIDBI / NEDFI |
| 02 | A detailed Bank Appraisal Note, specific to the Scheme, from a Scheduled Commercial Bank / NABARD / SIDBI / NEDFI. |
VI) Declaration / Certifications
| 01 | Net Worth Certificate by CA (Appendix-I) |
| 02 | CA / Statutory Auditor Certificate (Appendix-II) |
| 03 | Item-wise & Cost-wise (Basic & GST / Taxes separately) details of Technical Civil Works duly certified by CE (Civil) |
| 04 | An Undertaking (Appendix-III) on ₹ 100 Stamp Paper (Non-Judicial) duly notarised |
| 05 | Item-wise & Cost-wise (Basic & GST / taxes separately) details of Plant & Machinery duly certified by CE (Mechanical) |
| 06 | The expenditure incurred on the project before the date of submission of online application (Appendix-IV) |
| 07 | Proof of submission of Govt Fee in the form of DD |
Note :
| 01 | All above documents must be submitted through online duly Self-attested by Applicant |
| 02 | Land must be in the name of Applicant |
| 03 | Proposal should contain an Index as first page & all pages of documents must be properly numbered |
| 04 | When Original Documents are in a regional language, they should be accompanied by self-certified English / Hindi translation |
| 05 | Correspondences (e-Mails / Letters) for possible forward or backward linkages. |
| 06 | Break up of Basic Cost & Taxes (Civil & Plant & Machinery) are mandatory in all requisite documents such as DPR, Bank Appraisal, CE Certificates, CA certificate. |
| 07 | In case, GST / Taxes are not considered and shown as part of total Project Cost and means of finance, the proposal will be rejected due to non-disclosure of financials of the project. |
| 08 | The projects, which are exempted from taxation like SEZs, manufacturing and other operations in warehouse (MooWR) & Export promotion capital Goods scheme (EPCG) etc. should invariably mention complete details about such exemptions in all requisite documents. |
| 09 | In case land for the project has been taken on lease from State Government / its entities, the policy of respective State Government in this regard will be followed. |
FAQ's
| Sl No | FAQ | Clarification |
| 01 | Whether by-products of the slaughter house can be a raw material to establish a separate meat processing unit under CEFPPC scheme? | By-products of the slaughter house (except non-food items viz. feathers, bone meal, tail, hides, horns, hoofs etc.) can be utilised as raw material to establish a meat processing unit under CEFPPC scheme. |
| 02 | Clarify the term Modern Rice Milling and specific requirements of Modern Rice Mill in order to be eligible under the scheme? | Modern rice milling is the process of manufacturing finished, unbroken and polished rice (raw / parboiled) from raw paddy by using latest technologies. The cost of plant & machinery and technical civil work in this regard are eligible for grants-in-aid under CEFPPC scheme. |
| 03 | CLU is not required in States like Uttar Pradesh for establishing industrial unit or to use land for industrial purposes. | If CLU is not required for establishing industrial unit in the concerned State, then while applying under CEFPPC Scheme, a copy of order issued by the State Government for the same needs to be submitted. |
| 04 | As per Para 16(8) of the scheme guidelines, the second installment (50% of grant in aid) shall be released after commencement of commercial production by the unit. In this reference, you are requested to please clarify if the second installment of the 50% grant can be used to repay the bridge loan obtained by the unit for the completion of the project? | For claiming second instalment of grants-in-aid (GIA), the project implementing agency (PIA) should submit all the requisite documents mentioned at Para-16)8 of the CEFPPC scheme guidelines dated 08.06.2022 for re-imbursement of 2nd and final instalment of GIA after completion of the project. Such instalment will be released only on reimbursement basis i.e. PIA should have spent the full amount and completed the project. Therefore, this Ministry has no objection in utilising the second installment of GIA towards repayment of bridge loan. |
| 05 | Whether establishing apple cider (containing 5% alcohol and 35% to 90% apple juice) manufacturing unit in a Mega Food Park approved by MoFPI is eligible for availing grants-in-aid under CEFPPC Scheme? | As per Para-2(m) of the CEFPPC Scheme guidelines dated 08.06.2022, carbonated drinks / beverages containing fruit juice/ pulp (more than 5% in case of lime/ lemon and more than 10% in case of other fruits) will be considered for financial assistance under the Scheme. A maximum of two (2) units in a Mega Food Park (MFP) and one (1) unit in Agro-Processing Cluster (APC) can be sanctioned under this category. |
| 06 | Whether alcoholic beverages manufacturing unit is eligible for availing grants-in-aid under CEFPPC Scheme? | No. Alcoholic beverage manufacturing units are not eligible for grants-in-aid as per the CEFPPC scheme Guidelines dated 08-06-2022. |
| 07 | Whether MoFPI under CEFPPC Scheme, supports expansion of Cold Storage capacity for a sea food processing factory? | As per the CEFPPC scheme guidelines dated 08-06-2022, this Ministry does not support setting up / expansion of standalone cold storage. |
| 08 | Some plant & machineries are fabricated at project site by procuring stores, spares and other equipment. In such case, who will issue unique machinery number for the fabricated P&M? | As regard to the branded plant & machinery / equipment, Unique Machinery Number are provided by the manufacturing company itself. However, for fabricated plant & machinery, a certificate of CE (Mechanical) on the quality / performance of such P&M must be submitted. PIA should prefer to install P&M manufactured by Original Equipment Manufacturer (OEM). |
| 09 | If loan is taken against P&M only, electrical and civil work will be constructed through own source - is there any problem? | PIA has to ensure that, of the total project cost, at least 20% is through term loan. |
| 10 | How many perishable units should be set up in an Agro Processing Cluster out of minimum 5 food processing units? | No such stipulation is there in APC Scheme guidelines. |
| 11 | Whether the projects, where work has been started and some invoices were received but bank loan is not yet sanctioned, be disqualified or only the expenses will be disallowed which are incurred prior to the date of sanction of proposal.Ministry may allow the investment after date of Eal from Own contribution as well as Bank loan before sanction of project under CEFPPC scheme. | The expenditure incurred on the project before approval / sanction of the proposal by the Ministry under CEFPPC Scheme will not be considered as eligible project cost for working out the GIA. However, if sanctioned, the expenditure incurred on the project from the date of sanction of proposal will be taken into account for calculating eligible project cost and GIA. The invoices for the tasks performed earlier to the date of sanction of the proposal by the Ministry will not be considered for assessing eligible project cost vis-a-vis grants-in-aid. However, they may be required by the Ministry for verification. |
| 12 | Whether Search and Valuation report prior to EOI date mentioned in the appraisal report of the project will be considered under CEFPPC scheme? | A detailed appraisal report (indicating all the financial parameters) of the proposal should be from a Scheduled Commercial Bank and it should not be prior to the date of EOI. |
| 13 | Can one promoter simultaneously apply for same project under both the schemes viz. Cold Chain and CEFPPC unit scheme? | Yes |
| 14 | For awarding marks under priority sector, whether the category is decided on the basis of raw material or finished products? | The priority of the sector is based on perishability of raw materials used in the food processing unit. Marks will be accordingly awarded. |
| 15 | Whether awarding marks for the investment on eligible project cost is assessed either by including GST or excluding GST attached with the eligible components or items? Whether the grants-in-aid will be calculated on net amount or including GST. Since GST on civil cost is not eligible for set-off under GST Act, whether GST on civil work is eligible for grants? | For awarding marks for investment on eligible project cost, the value of the items (i.e. eligible P&M or TCW) without GST will be considered, as taxes are ineligible item for eligible project cost calculation vis-a-vis grants-in-aid calculation under CEFPPC Scheme. |
| 16 | Turnover for F.Y. 2020-21 (which is already audited) will be considered or F.Y. 2021-22 (unaudited) will be considered for marking? | For awarding marks, audited turnover of the applicant firm will be considered. However, in case of latest provisional balance sheet turn over, it should be certified by a Statutory Auditor of the company. |
| 17 | whether term loan sanction and appraisal note from a Non Scheduled Co-op Bank is allowed as it is also controlled by RBI? | A detailed appraisal report (indicating all the financial parameters) of the proposal should be from a Scheduled Commercial Bank. However, term loan for the project may be availed either from a Scheduled Commercial Bank or a Government-controlled financial institution or a Non-Banking Financial Company approved by RBI. |
| 18 | No second proposal from an entity or promoter(s) of an entity who have availed grant-in-aid ,earlier under the scheme will be considered. What does promoter(s) means? | In this context, promoter(s) means an individual in case of a proprietorship concern or a partner/ shareholder of a firm or a Director (with share-holding) or persons with direct/ indirect control in a company. |
| 19 | What will be the form of promoters contribution-Equity share, preference share, Reserve & surplus, unsecured loan from promoters / shareholders? | Promoter(s) contribution includes Equity, Share, Reserve & Surplus and Internal accruals. |
| 20 | In case of expansion project and having sufficient equity & internal accruals, is it mandatory to infuse fresh 20% equity? | Yes. 20% fresh equity should be infused for expansion components of the existing unit. |
| 21 | Can private limited company, who has not started commercial operations apply for the grants-in-aid based on the net-worth of promoter/ Directors/ shareholder combined. | Private Limited Company which has not started commercial operation will be considered as new and the net worth of the promoter(s)/ director(s)/ share holder(s) will be considered to assess the combined net-worth as per Appendix-I. |
| 22 | The works related to the proposed unit can be started before the sanction of the proposal by using the fund from promoter's contribution? For start of such work, can Ministry accord permission? | No. The Ministry cannot accord permission to start the works related to the proposed unit before the sanction of the proposal under the scheme. |
| 23 | If import LC is issued before approval of the proposal by the Ministry, will the amount of LC be excluded for assessment of the eligible cost of the project? | Yes |
| 24 | If the promoter has allotted work to an agency on Turn-Key basis who don't manufacture any machines and that agency mentions the model and make of machines then whether the same is allowed? | Yes, a project can be set up on turnkey basis. However, invoices have to be from OEM or authorized dealers in the name of project implementation agency. |
| 25 | Under Annexure-Vlll of the CEFPPC Scheme guidelines dated 08.06.2022, it is mentioned that in the event of Bank recovering its loan liabilities from the promoter in case of default, the bank shall refund to the Govt. grant in proportion of its own dues. Due to this clause, bank has denied to sanction term loan for the project. | Clarification in this regard will be issued subsequently. |
| 26 | Establishing Animal Feed manufacturing unit outside Mega Food Parks/ Agro Processing Clusters is allowed under CEFPPC scheme. | No. However, Animal Feed manufacturing unit is allowed under MFPs / APCs approved by this Ministry from time to time. |
| 27 | A company which has availed benefits under PM-FME scheme for establishing a food processing unit, is the same unit is eligible to obtain benefits under CEFPPC scheme? | Clarification in this regard will be issued subsequently. |
| 28 | A company which has availed benefits under PLI scheme is eligible to obtain benefits under CEFPPC scheme? | Clarification in this regard will be issued subsequently. |
| 29 | Spices are covered under which priority sector in relation to award of marks? | Spices are semi-perishable and, hence, they are covered under Consumer products. |
| 30 | Would two or more eligible sectors belonging units be eligible to set up at one premise with CEFPPC grants-in-aid. e.g. are cashew nut processing and cold pressed oil units eligible under CEFPPC scheme? If yes, could both the units be set up in one land parcel under the CEFPPC scheme as single project? | Setting up of Cashew nut processing unit and cold-pressed oil units are eligible under CEFPPC scheme. However, both the processing units cannot be set up under one single project |
| 31 | Is project proposed to be set up in State Notified ITDP (Integrated Tribal Development Projects) areas are eligible for grants in aid @50%? | Project proposed to be set up in ITDP (Integrated Tribal Development P.rojects) areas notified by Ministry of Tribal Affairs, Government of India are eligible for grants in aid @ 50% of eligible project cost, subject to meeting other conditions of scheme guidelines |