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Food Processing Industry Invests Rs 4,900 Cr Under PLI Scheme: Govt
The PLI scheme for the food processing industry was approved in March 2021, with a budget outlay of Rs 10,900 crore. It will be implemented for seven years, until 2026-27
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The government on Thursday said that the food processing industry has invested Rs 4,900 crore so far under the production-linked incentive (PLI) scheme. The PLI scheme for the food processing industry was approved in March 2021, with a budget outlay of Rs 10,900 crore. It will be implemented for seven years, until 2026-27.
"A total of 182 applications have been approved under the PLI scheme for the food processing industry," an official statement read.
This includes 30 applications for millets-based products under the PLI scheme (8 large entities and 22 SMEs), the statement added.
"According to data reported by PLI scheme beneficiaries, the scheme has attracted an investment of approximately Rs 4,900 crores," said the statement.
Incentives amounting to Rs 800 crore are likely to be disbursed in the current financial year. Sales-based incentive of Rs 107.3 crore has been disbursed so far, it added.
According to the food ministry, stakeholder consultations for the introduction of a PLI Scheme for the Nutraceutical sector are also underway, allowing this segment to reach its full potential and find its rightful place.
The implementation of the scheme is likely to facilitate the expansion of food processing capacity by nearly Rs 30,000 crore and create additional direct and indirect employment opportunities for about 2.5 lakh persons by 2026-27.
PLI beneficiaries' investments are likely to increase sales and exports of food products. The scheme requires that the entire chain of manufacturing processes, including primary processing of food products, take place in India in order to qualify for the incentive, which is expected to boost domestic industry. It was also stated that the scheme will aid in the promotion of Indian brands abroad.
The ministry stated that a total of 112 food processing projects were completed and operationalised during 2022, leveraging private investment of Rs 706.04 crore and generating direct and indirect employment for 25,293 people. During the year, approximately 190 food processing projects were approved.
As per the ministry, the 'One District One Product (ODOPY) scheme (under the Prime Minister-Formalisation of Micro Food Processing Enterprises (PM-FME) scheme) has been approved for 713 districts across 35 states and union territories, with 137 distinct products.
About 46 new projects have been approved for the Operation Greens Scheme in 2022.