Friday, 11 April 2025

Certainly! Here's a comprehensive overview of the Agro Processing Cluster (APC) Scheme, an initiative under the Pradhan Mantri Kisan Sampada Yojana (PMKSY), aimed at developing modern infrastructure and common facilities to encourage groups of entrepreneurs to set up food processing units. citeturn0search0



🌾 Objectives of the APC Scheme

  • Infrastructure Development:Establish modern infrastructure and common facilities to link groups of producers/farmers to processors and markets through a well-equipped supply chain

  • Value Addition:Reduce wastage of surplus agricultural produce and add value to horticultural/agricultural products, leading to increased income for farmers and local employment creation citeturn0search2

🏗️ Components of the Scheme

1. Basic Enabling Infrastructure

Development of industrial plots, boundary walls, roads, drainage, electricity supply (including power backup), effluent treatment plants (ETP), parking bays, weighbridges, and common office spac.

This component should not exceed 40% of the eligible project cos. citeturn0search7

2. Core Infrastructure/Common Facilities

Includes warehouses, cold storages, Individual Quick Freezers (IQF), sorting and grading facilities, steam generation boilers, dry warehouses, pre-cooling chambers, ripening chambers, specialized packaging, and other common processing facilitie.

The cost of these facilities constitutes the remaining 60% of the eligible project cos. citeturn0search7

📋 Eligibility Criteria

Project Execution Agency (PEA)

Eligible entities include:

  • Government Departmets

  • Public Sector Units (PSs)

  • Joint Ventues

  • Non-Governmental Organizations (NGs)

  • Cooperaties

  • Self-Help Groups (SHs)

  • Farmer Producer Organizations (FPs)

  • Private Sector Companes

  • Partnership Firms and Proprietorship Fims

  • Individuls

The combined net worth of the PEA should not be less than 1.5 times the grant amount sougt. citeturn0search7

Land Requirements

  • A minimum of 10 acres of land is required, either by purchase or on a lease of at least 50 yeas.

  • In urban areas, a minimum of 5 acres may be sufficiet. citeturn0search7

Financial Requirements

  • The PEA must contribute at least 20% of the total project cost as equity or contribution in general areas, and at least 10% in North Eastern States and difficult ares.

  • A term loan from a bank or financial institution for an amount not less than 20% of the project cost is requird. citeturn0search7

💰 Pattern of Assistance

  • *General Areas: Grants-in-aid at a rate of 35% of the eligible project cst.

  • *North Eastern States, Sikkim, and Difficult Areas: Grants-in-aid at a rate of 50% of the eligible project cost, subject to a maximum of ₹10 crore per projct. citeturn0search1

  • Release of Grant:

    • *First Installment: 35% after incurring 35% of the bank term loan and 35% of the promoter's contribution/equty.

    • *Second Installment: 40% after incurring 75% of the bank term loan and 75% of the promoter's contribution/equty.

    • *Third Installment: 15% after 90% completion of the projct.

    • *Final Installment: 10% upon project completion and submission of requisite documets. citeturn0search1

📈 Progress and Implementaton

As of September 2023, out of 70 approved projects under the APC scheme, only two have been completed and are operatinl. At least 30 projects are running behind schedule, primarily due to delays in land use change approvals, securing term loans, and disruptions caused by the COVID-19 pandmic. citeturn0search9

📞 Contact Information

For more details or to submit proposals:

Shri Pankaj Kumar

Director, Ministry of Food Processing Industries

Panchsheel Bhawan, August Kranti Marg, New Delhi-110049

Tel: 011-26406510

Email: pankaj.kumar1975@gov.in

For further information, you can visit the official website of the Ministry of Food Processing Industries: linkturn0search0

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