Agro Processing Cluster (APC) - Central Govt (MoFPI)
EoI – Deadline for filing Initial (First) Application
| Sl No | Particulars | Remarks |
| 01 | Scheme Name | Creation of Infrastructure for Agro-Processing Clusters (APC) |
| 02 | When to Apply | From 10:00 AM of 09-10-2023 to 05:00 PM of 15-12-2023 (68 Days) |
| 03 | Last Date to Apply (Cut-off Date) | On or before 05:00 PM on 15-12-2023 |
| 04 | Govt. Fee (Non-Refundable) | General Category - ₹ 20,000/- |
| 05 | Mode of Govt Fee | A Demand Draft (DD) to be submitted in favour of "Pay & Accounts Officer, Ministry of Food Processing Industries, New Delhi". |
| 06 | Mandatory condition of submission of original DD (Cut-off Date) to Ministry | It should reach Ministry not later than 7 Days after Last Date of Submission of Application – 15-12-2023 |
Central Food Ministry (MoFPI) - APC - Unit Caps / Budgeting
(Agro Processing Cluster Subsidy)
| Sl No | Particulars | Inputs |
| 01 | Scheme Announced on (Revised Guidelines) | 08-06-2022 |
| 02 | Scheme Period | 2021-22 to 2025-26 (5 Years) |
| 03 | Cut-off Date - Application Submission | 09-10-2023 to 15-12-2023 (68 Days) |
| 04 | Major Criteria's | No Civil Work, No Machinery Purchase, No Advances to Suppliers / Contractors before Ministry Approval. |
| 05 | Minimum Approval Time required by Ministry to Sanction Project | 3 Months 15 Days |
| 05 | Minimum Approval Time required by Ministry to Sanction Project | 3 Months 15 Days |
| 06 | No of Applications / Unit Cap - Entire Policy Period (2021-22 to 2025-26) | 30 APC’s with a Budget of ₹ 240 Crore for 5 years |
| 07 | Unit allocations per Year | 6 Units for 2023-24 |
Note - There are 50-50 chances for consideration of additional Units / Proposals
Agro Processing Cluster (APC) – Central Govt (MoFPI)
Snapshot (Guidelines)
| Sl No | Particulars | Inputs |
| 01 | Scheme Effective Date | 08-06-2022 |
| 02 | Project Location | Any District other than approved MFP / APC |
| 02 | Subsidy Rate | 35% (Gen) and 50% (NER / SC / ST / ITDP Areas) on Eligible Project Cost (Basic Enabling Infrastructure and Core Infrastructure) with a cap of ₹ 10 Cr, whichever is lower. |
| 04 | Instalments | 3 Equal Instalments (1/3rd of Grants-in Aid each) |
| 05 | Submission of 1st Instalment Documents - Cut-off Date & Stage | Submit documents after confirming expenditure of 1/3rd of Eligible Project Cost, but within 8 months (Gen) / 10 months (SC / ST) from the date of “Ministry Approval”. |
| 06 | 1st Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants | Will carried out approx. in 30 days from the date of submission of 1st Installment Documents. |
| 07 | 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. |
| 08 | Submission of 2nd Instalment Documents - Cut-off Date & Stage | Submit documents after spending expenditure to the extent of 2/3rd (67%) of “Eligible Project Cost”, 60% of Basic Enabling Infrastructure, 40% of Core Infrastructure, 50% of TL & 50% progress of Tech Civil Work at least for 2 Units in APC, but within 16 months (Gen) / 20 months (SC / ST) from the date of “Ministry Approval”. |
| 09 | 2nd Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants | Will carried out approx. in 30 days from the date of submission of 2nd Installment Documents. |
| 10 | 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. |
| 11 | Submission of 3rd Instalment Documents - Cut-off Date & Stage | Submit documents after 100% utilization of “Eligible PC, Term Loan (TL), at least 3 units should come into Production and start construction of remaining 2 units with an aggregate Investment ₹ 25 Cr (for 5 Units)”, but within 24 months (Gen) / 30 months (SC / ST) from the date of “Ministry Approval”. |
| 12 | 3rd Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants | Will carried out approx. in 30 days from the date of submission of 3rd Installment Documents. |
| 13 | Release of 3rd Instalment | Once submission of Inspection Report by concerned Govt Officials / Agency, 3rd Instalment will be released in 1 month (approx.), subject to availability of funds. |
| 14 | 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. |
Agro Processing Cluster (APC) Subsidy – Central Govt (MoFPI)
Eligible Criteria’s
| Sl No | Particulars | Inputs |
| 01 | APC Definition |
Only New APC (No Expansion / Upgradation) is allowed. Only one APC in one District is allowed. |
| 02 | Land | Should be at least 10 Acres in the name of Applicant. If “Lease Land,” then 50 years “Lease Period” duly registered is required. In case of “Urban Areas”, 5 Acres on similar lease is enough. |
| 03 | Term Loan (TL) | TL Date should be after Expression of Interest (EoI) Date.Minimum TL Value should be 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST. |
| 04 | Equity (Own Contribution) | At least 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST. |
| 05 | Net worth (Combined) | Should be 1.5 times of Grant-in-Aid for General (or) 10% of Grant-in-Aid (Subsidy Amount) for NER / SC / ST. |
| 06 | Eligible Project Cost | Basic Enabling Infrastructure (Maximum 40% of Eligible Project Cost) + Core Infrastructure (may vary from project to project). |
| 07 | Minimum Units in APC | 5-10 New Food Processing Units to be set-up in APC, with an aggregate eligible investment of Minimum ₹ 25 Crore. |
| 08 | Restrictions | One application from an entity will be considered. The promoter of MFP or APC’s may set-up units (for more than one unit) in their respective MFP or APC’s. |
| 09 | Investment Made prior to Ministry Approval | Will not be considered as “Eligible Project Cost” to calculate Subsidy Amount. |
| 10 | 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 will be release on successful implementation of Project, but after receipt of 3rd Instalment of Subsidy Amount. |
| 11 | 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. |
| 12 | Minimum 3 Bank Accounts | 1 Current Account, 1 Term Loan Account, 1 Subsidy Account to be maintained by applicant |
| 13 | Evaluation Marks | As per “Ministry Evaluation Chart,” minimum 60 marks for General & 45 Marks for NER / SC / ST / ITDP required to secure / achieve to make Project Eligible |
| 14 | Project Completion | General Areas - Within 30 months (Original 24 Months + 6 Months Extension). Difficult Areas (NER / SC / ST) - Within 36 months (Original 30 Months + 6 Months Extension) from the date of Ministry Approval including extended period. |
| 15 | Mandatory Machinery Mfg. Details on each Machine | Supplier is required to affix or rivet Manufacturing Plate on each Machine duly mentioning Unique Machine No, Month & Year of Manufacture |
Central Food Ministry (MoFPI) – APC
(List of Basic & Core Infrastructure Components)
| Sl No | I) Basic Infrastructure | Sl No | II) Core infrastructure |
| 01 | Development of Industrial Plots | 01 | Food Testing Laboratory |
| 02 | Boundary Wall | 02 | Cleaning |
| 03 | Roads | 03 | Grading |
| 04 | Drainage | 04 | Sorting |
| 05 | Water Supply | 05 | Packing Facilities |
| 06 | Electricity Supply including Power Back-up | 06 | Steam Generation Boilers |
| 07 | Effluent Treatment Plant | 07 | Dry Warehouse |
| 08 | Parking Bay | 08 | Cold Storage |
| 09 | Weigh Bridges | 09 | Pre-cooling Chambers |
| 10 | Common Office Space | 10 | Ripening Chambers |
| 11 | Firefighting | 11 | IQF |
| 12 | Labour Rest Room | 12 | Specialized Packaging, |
| 13 | Security Guard Room | 13 | Other Common Processing Facilities |
Ineligible items for Calculation of Grants-in-Aid / Subsidy Amount
| 01 | Approach Road | 10 | Stationery Items |
| 02 | Cost of Land | 11 | Expenditure on Painting of Machinery |
| 03 | Canteen | 12 | Pre-operative expenses |
| 04 | Quarters for Workers | 13 | Fuel, Consumables, Spares & Stores |
| 05 | Non-technical Civil Works not related to the components of the Scheme | 14 | Consultancy Fee, Taxes, etc. on Plant and Machinery. |
| 06 | Margin Money, Working Capital, and Contingencies | 15 | Service Charges, Carriage and Freight Charges or Other such Charges / Fees |
| 07 | AC Ducting, Furniture, Computers and Allied Office Items | 16 | Plant & Machinery not directly related to Components of the Scheme |
| 08 | Transport Vehicles except Controlled Temperature Vehicles like Coolers and Refrigerated / Insulated / Ventilated Transport | 17 | Fly Catchers, Hand Washer, Laundry |
| 09 | Closed Circuit TV Camera and Security System related Equipment. | 18 | Reconditioned / Refurbished / 2nd Hand / Old Plant & Machinery |
Central Food Ministry (MoFPI) - Application Process Timelines
(Agro Processing Cluster (APC) Subsidy)
| Sl No | Head | Timelines (TAT) |
| 01 | Application - Starting Date | 09-10-2023 |
| 02 | Application - Submission Last Date | 15-12-2023 |
| 03 | Total days available for submission of Application | 68 Days |
| 04 | Time required for considering the case by Technical Scrutiny Committee (TSC) by Ministry. | 30 Days |
| 05 | Time required for further consideration of proposal for IMAC once TSC approved. | 15 Days |
| 06 | Time required to get Approval / Sanction form Ministry after IMAC Decision. | 15 Days |
| 07 | Total time required to get Approval | 3 Months 15 Days |
Check List (APC) - Initial Application
| Sl No | Particulars |
| 01 | Detailed Project Report - DPR |
| Indicating financial and technical profile of the entity | |
| Domain expertise available with the entity | |
| Raw material availability in the area where project is proposed to be set up | |
| Arrangements for procurement of raw material | |
| Marketing strategy of proposed products | |
| Process flow diagram of proposed products with production capacity per day | |
| Technology proposed for various activities in process line | |
| Financial estimates with key financial parameters | |
| Profit and Loss statement | |
| Estimated employment generation from the project (direct as well as indirect) | |
| Number of farmers estimated to be benefited etc | |
| Status of availability of land | |
| Potential investors for food processing units in the cluster | |
| Proposed level of investment including the estimated project cost | |
| Proposed means of finance | |
| The number and type of food processing units along with complete details | |
| 02 | A detailed Appraisal Note, specific to the scheme, from a Scheduled Commercial Bank. |
| 03 | Bio-data / background / experience of the entity relevant to the scheme. |
| 04 | In-Principle / Final term loan sanction from a Bank. |
| 05 | Certificate of Incorporation, Memorandum and Article of Association, Bye laws, Partnership Deed, TAN |
| 06 | PAN Card of Company |
| 07 | SC / ST Caste certificate (If applicable) |
| 08 | Registered Sale Deed / Lease deed (Lease Period 50 years) - English Version |
| 09 | Change in Land Use (CLU) |
| 10 | Quotations (which include ITC (HS) Code, Product Description, Quantity, Basic Cost, GST) from Original Equipment Manufacturer or its authorised dealer / supplier |
| 11 | Annual reports and Audited Financial Statement of Accounts of for last two years |
| 12 | Net worth Certificate by CA / Statutory Auditor (Appendix - III) |
| 13 | CA / Statutory Auditor Certificate (Appendix - IV) |
| 14 | Correspondences (emails / letters) for possible forward or backward linkages. |
| 15 | Proof of submission of Fee |
Important 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. |
FAQ'S
| Sl No | FAQ | Clarification |
| 01 | Should the 10 acre land piece be a single parcel or could two parcels of land in same village be eligible for the project? | The land area of 10 acre should be in a single piece for establishing an APC project. |
| 02 | How many perishable units should be set up in an Agro Processing Cluster out of minimum 5 food processing units? | No such stipulation is mentioned in APC Scheme guidelines. |
| 03 | What will be the form of promoters contribution-Equity share, preference share, Reserve & surplus, unsecured loan from promoters / shareholders? | Promoters contribution includes Equity, Share, Reserve & Surplus and Internal accruals. |
| 04 | Can the slaughtering house be considered as an eligible component under the core processing facility of the APC? | No. |
| 05 | Whether the by-products 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. |
| 06 | Bangalore rural is officially designated to process poultry products under ODOP for PMFME Scheme as per MoFPI Notice dated 04.01.2021. Will it be considered as designated cluster by MoFPI under APC scheme? | No |