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Govt invitations EoI newest by June 17 for Rs 11k-cr meals processing PLI scheme

The scheme would assist increase the home capability for meals processing and probably generate extra Rs 33,500 crore price of processed meals

Issuing detailed operational scheme pointers for its Production Linked Incentive (PLI) scheme, the meals processing industries ministry Monday invited an expression of curiosity newest by June 17 in order that it takes off on the earliest. The Cabinet on March 31 had cleared a production-linked incentive (PLI) scheme to advertise processed meals manufacturing, with an estimated price of Rs 10,900 crore to the exchequer over the following six years.

Announcing the Cabinet determination, minister for commerce, railways and meals and public distribution Piyush Goyal had mentioned that the scheme for meals processing would contribute to the federal government’s efforts to extend farmers’ incomes by means of higher processing of agricultural produce and appeal to large international investments within the high-potential sector.

According to the rules, giant entities below category-I ought to have minimal gross sales (all meals merchandise throughout 2019-20) turnover of Rs 500 crore for able to cook dinner/able to eat (RTC/RTE) meals, Rs 250 crore for processed vegetables and fruit, Rs 600 crore for marine merchandise and Rs 150 crore for mozzarella cheese to turn out to be eligible for the scheme.

Similarly, the minimal funding for these giant entities has been fastened at Rs 100 crore for RTC/RTE, Rs 50 crore for processed vegetables and fruit, Rs 75 crore for marine merchandise and both 10 tonne per day capability plant or Rs 23 crore for mozzarella cheese. Under Category-II (SMEs candidates), Udyog Aadhar/Udyami registered entities ought to have minimal gross sales of Rs 1 crore throughout 2019-20 for every of the progressive/natural merchandise proposed to be incentivized to take part in EoI. Only Apeda-registered natural merchandise are eligible below PLI scheme.

Main circumstances to use for PLI grant for enterprise branding and advertising and marketing actions overseas embrace solely Indian manufacturers utterly manufactured in India. Branding and advertising and marketing shall be undertaken both by the applicant instantly or by means of its subsidiary or another company.

The RTE/RTC merchandise as per pointers embrace potato fries, tikki, and many others. (potato chips excluded), desk sauces, pasta sauces, cooking sauces, dry sauces, ketchup, mustard, oyster sauces, salad dressings, dips, and different sauces and all fruit based mostly jam/jellies. Fruits and vegetable class consists of packaged processed merchandise that are steamed/boiled/frozen/dried/pickled/provisionally preserved/ or preserved by means of additive and preservatives. Spices (each combined and single spices) packed in shopper measurement packs could be included below the scheme.

The scheme would assist increase the home capability for meals processing and probably generate extra Rs 33,500 crore price of processed meals with a possible to create 2.5 lakh employment, based on an official estimate. The eligibility standards — by way of funding and turnover — for companies to avail of the incentives will probably be determined later in session with the trade.

In all, 13 PLI schemes are being rolled out, together with these for vehicles, prescription drugs, IT {hardware} together with laptops, cell phones & telecom gear, white items, chemical cells and textiles. Prime Minister Narendra Modi mentioned the 13 PLI schemes may result in an incremental manufacturing output of $520 billion and double the work pressure in related sectors over the following 5 years. The thought behind the PLI schemes is to lure giant corporations to develop to turn out to be ‘global champions’ with the use cutting-edge expertise.

The whole incentives below the PLI schemes, are seen at Rs 1.97 lakh crore over a 5-6 years. However, the federal government could possibly be a web gainer as by elevated home manufacturing and gross sales may the its tax income – not solely oblique taxes like GST, however even the company tax income will probably be given a lift because of the elevated profitability of corporations.

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