Production Linked Incentive (PLI) Scheme for Food Processing Industry

The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is run by the Ministry of Food Processing Industries (MoFPI), Government of India. It seeks to strengthen India's standing in global food manufacturing by helping build large food processing players and by taking Indian food brands to international markets. The scheme also aims to create substantial off-farm employment, secure remunerative prices for agricultural produce, and raise farmer incomes.

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

The scheme has three components:

- **Component 1: Incentivizing Key Food Segments:** Incentives are offered for manufacturing four major food product categories — Ready to Cook/Ready to Eat (RTC/RTE) foods, with particular focus on millet-based products, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese. The aim is to drive growth and value addition in these segments.

- **Component 2: Support for Innovative & Organic SMEs:** SMEs working on innovative or organic products across the food segments mentioned above are eligible for incentives. Specialized products such as Free Range Eggs, Poultry Meat, and Egg Products are also covered, to encourage diversification and sustainable practices.

- **Component 3: Global Branding and Marketing Support:** Financial support is provided for branding and marketing activities abroad, helping Indian brands establish themselves internationally. This is intended to improve recognition and market share for Indian food products in global markets, thereby raising exports and expanding India's trade footprint.

- **Step 1: Wait for the Expression of Interest (EOI):** The process begins when the Ministry of Food Processing Industries (MoFPI) issues an Expression of Interest (EOI). The EOI carries key information, including the window for applying, the eligibility criteria, and the categories under which applications may be made. - **Step 2: Study the EOI and Prepare:** Applicants need to go through the EOI carefully to grasp what the programme requires. The application window must be noted, since submissions received after it closes will not be accepted. While preparing, applicants should compile all relevant company, financial, and product information. - **Step 3: Reach the Online Portal:** Go to the official portal at `https://plimofpi.ifciltd.com` to start submitting the application. - **Step 4: Fill in the Application Form:** Complete the detailed application form in the prescribed format set out in Annexure-1 of the scheme guidelines. This generally covers company details, proposed product segments, sales projections, investment plans, and manufacturing capabilities. - **Step 5: List Manufacturing Sites:** Give exact details of every manufacturing site proposed for sourcing eligible products under the scheme, whether owned by the applicant or operated by a contract manufacturer. - **Step 6: Upload Documents and Undertaking:** Upload all mandatory supporting documents, which usually include incorporation certificates, financial statements, sales records, investment proofs, and a business plan. Also submit an undertaking (as per Annexure-7) consenting to audits of manufacturing sites and offices by the authorities. - **Step 7: Pay the Application Fee:** Pay the non-refundable application fee online. The amount differs by category: ₹1,00,000 for Category-I applicants, ₹10,000 for Category-II applicants, and ₹10,000 (SMEs) or ₹50,000 (other applicants) for Category-III. - **Step 8: Obtain an Application ID:** Once the submission succeeds, the Project Management Agency (PMA) generates a unique Application ID to be used for all future correspondence and tracking. - **Step 9: Preliminary Examination by the PMA:** Within 15 working days, the PMA carries out a preliminary examination of the application, verifying completeness and compliance with basic requirements as per Annexure-2. - **Step 10: Fix Deficiencies (if any):** Where an application is incomplete or has deficiencies, the applicant is informed within 15 working days and must set these right within 10 working days. If this is not done, the application may be rejected. - **Step 11: Processing and Recommendation:** After the application is complete, the PMA processes it in detail and recommends it to the Ministry of Food Processing Industries (MoFPI) for final approval. - **Step 12: Finalisation of Applications:** Applications are ordinarily finalised within 90 days from the closure of the application window, provided all documentation is complete and accurate. - **Step 13: Receive the Approval Letter:** Once MoFPI grants approval, the PMA issues an official approval letter within 5 working days. The letter sets out key particulars, including the approved product segment, base year sales, projected incremental sales, applicable incentive rates, committed investment, and the production schedule. - **Step 14: Submit a Performance Bank Guarantee:** Selected applicants must furnish 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 a staged selection process for PLI Scheme for Food Processing Industry applications. Applicants first respond to an Expression of Interest (EOI) and file their submissions online. The PMA then carries out a preliminary scrutiny spanning 15 working days, checking that each application is complete and complies with the initial guidelines. Where shortcomings come to light, the applicant is informed and given 10 working days to set them right, failing which the application is rejected.

Applications that clear this stage are taken up by the PMA for assessment against parameters including proposed investment, sales projections and alignment with the relevant product segment. On the strength of that assessment, the PMA draws up a recommendation report and places it before MoFPI, which conducts the final review and grants approval. From the date the application window closes, the whole finalisation exercise is targeted for completion within 90 days. Successful applicants are issued an official approval letter setting out their incentive structure and commitments, and are thereafter required to furnish a performance bank guarantee.