Production Linked Incentive (PLI) Scheme for Food Processing Industry

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is administered by the Ministry of Food Processing Industries (MoFPI), Government of India. It seeks to strengthen India's position in global food manufacturing by nurturing domestic champions and promoting Indian food brands abroad. The scheme also targets off-farm employment generation, fair prices for agricultural produce, and higher farmer incomes.

The scheme runs for six years, from Financial Year 2021-22 to Financial Year 2026-27. Incentives earned in a given year are generally paid out in the following year. MoFPI manages implementation through a dedicated Project Management Agency (PMA), which handles application processing, verification, and disbursement.

PLISFPI has three components:

- **Component 1: Incentivizing Key Food Segments:** Provides incentives for manufacturing in four product categories: Ready to Cook/Ready to Eat (RTC/RTE) foods, with emphasis on millet-based products, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese.

- **Component 2: Support for Innovative & Organic SMEs:** Incentivises SMEs engaged in innovative or organic product development across the above segments, including Free Range Eggs, Poultry Meat, and Egg Products.

- **Component 3: Global Branding and Marketing Support:** Offers financial assistance for branding and marketing activities abroad, aimed at helping Indian food products gain recognition and market share internationally, thereby boosting exports.

The application process is outlined below.

1. **Await the Expression of Interest (EOI):** The process begins when the Ministry of Food Processing Industries (MoFPI) publishes an EOI. This document specifies the application window, the precise eligibility conditions, and the available application categories. 2. **Review the EOI and Prepare:** Applicants should study the EOI carefully to grasp the scheme's requirements. The application window must be noted, as submissions after its close will not be considered. During this stage, assemble all relevant corporate, financial, and product data. 3. **Access the Online Portal:** Go to the official portal at `https://plimofpi.ifciltd.com` to start the submission. 4. **Complete the Application Form:** Fill in the detailed form in the format given in Annexure-1 of the scheme guidelines. The form generally seeks comprehensive company information, proposed product lines, sales forecasts, investment outlays, and production capacities. 5. **Specify Manufacturing Sites:** Furnish exact particulars of every manufacturing location, including those owned by the applicant and those of contract manufacturers, intended for producing eligible items under the scheme. 6. **Upload Documents and Undertaking:** Submit all required supporting files, which typically comprise incorporation certificates, financial statements, sales data, investment evidence, and a business plan. Also provide an undertaking (per Annexure-7) agreeing to audits of manufacturing sites and offices by the authorities. 7. **Pay the Application Fee:** Settle the non-refundable fee online. The amount depends on the category: ₹1,00,000 for Category-I, ₹10,000 for Category-II, and for Category-III, ₹10,000 for SMEs or ₹50,000 for other applicants. 8. **Receive the Application ID:** After a successful submission, the Project Management Agency (PMA) will generate a unique Application ID, to be used for all subsequent communication and tracking. 9. **Preliminary Examination by PMA:** The PMA will check the application for completeness and basic compliance with Annexure-2 within 15 working days. 10. **Rectify Deficiencies (if any):** If the application is incomplete or has shortcomings, the applicant will be informed within 15 working days and must correct the issues within 10 working days. Failure to do so can lead to rejection. 11. **Processing and Recommendation:** Once the application is complete, the PMA will examine it in full and forward its recommendation to the MoFPI for the final decision. 12. **Finalisation of Applications:** Assuming all documentation is complete and correct, applications are generally settled within 90 days from the close of the application window. 13. **Receive the Approval Letter:** Following MoFPI's approval, the PMA will issue the formal approval letter within 5 working days. This letter specifies the approved product segment, base year sales, projected incremental sales, applicable incentive rates, committed investment, and the production timeline. 14. **Submit a Performance Bank Guarantee:** Successful applicants must provide a performance bank guarantee equal to 3% of their committed investment within two weeks of receiving the approval letter.

The Project Management Agency (PMA), working alongside the Ministry of Food Processing Industries (MoFPI), runs the selection procedure for the PLI Scheme for Food Processing Industry. Applicants submit their entries online after an Expression of Interest (EOI) is issued. The PMA first checks each submission for completeness and basic compliance within 15 working days. If gaps are found, the applicant is notified and has 10 working days to correct them, or the application is rejected.

Once complete, the PMA assesses the applications against factors including proposed investment, sales forecasts, and alignment with product segments. A recommendation report is then compiled and sent to the MoFPI for the final decision. The entire process, from the close of the application window, is meant to conclude within 90 days. Successful applicants receive a formal approval letter that spells out their incentive structure and obligations, after which they must furnish a performance bank guarantee.