Agro Processing Cluster Scheme
Objectives of the Scheme
The primary objectives of the
Agro Processing Cluster Scheme are given below:
To build modern infrastructure
for setting up food processing units closer to production areas.
To provide complete preservation
infrastructure facilities from the farm gate to the consumer.
To create backward and forward
linkages by linking groups of farmers or producers to the markets through the
well-equipped supply chain.
Salient Features of the Scheme
The salient features of the
Agro-processing cluster scheme are as follows:
The food processing units will be
set up with an aggregate investment of minimum Rs. 25 crores in the
Agro-processing cluster. These units will be set up by the promoters,
associates of Project Execution Agency (PEA) and by entrepreneurs.
The modern infrastructure
facilities will be developed in the agro-processing cluster for setting up food
processing units. This infrastructure facilities developed in the agro-cluster
will be as per the requirement of processing units to be set up in the cluster.
Agro-processing clusters will be developed by:
The promoters who are willing to
develop common infrastructure in the existing food processing cluster.
The promoters who are willing to
set up their processing units in the cluster and also allow for the utilization
of common infrastructure to other units.
The preference will be given for
setting up agro-processing clusters in the areas of horticulture or agriculture
production identified by Central or State Government.
The food processing units set up
in each Agro-processing cluster should generate employment opportunities for
about 500 to 1500 persons.
The land required for
establishing the agro-processing cluster would depend upon the business plan of
the Project Execution Agency (PEA), which varies from project to project. The
minimum of 10 acres of land for the project has to be arranged by the PEA
either by purchase or on the lease of at least 50 years.
Components of the Scheme
The scheme will have the
following two components are:
Basic enabling infrastructure
The basic enabling infrastructure
includes site development such as the development of industrial plots, boundary
wall, roads, drainage, water supply, electricity supply including power backup,
effluent treatment plant, parking bay, weighbridges, common office space etc.
However, the cost of basic enabling infrastructure will not be more than 40 %
of the eligible project cost.
Core infrastructure
The core infrastructure contains
common facilities based on the needs of the units, which will be set up in agro
clusters. The common facilities of capital intensive include sorting and
packing facilities, food testing laboratory, cleaning, grading, cold storage,
steam generation boilers, dry warehouse, pre-cooling chambers, ripening
chambers, IQF, specialized packaging, other common processing facilities, etc.
Pattern of Assistance
The assistance of 35% of the
eligible project cost will be provided to the general areas.
The assistance of 50% of the
eligible project cost not exceeding Rs.10 crores will be provided to the North
Eastern States including Sikkim and Difficult areas including Himalayan States
(Himachal Pradesh, Jammu and Kashmir and Uttarakhand), State Notified ITDP
areas and Islands.
Note: The eligible project cost
will exclude the land cost, pre-operative expenses and margin money for working
capital from the total project cost.
Eligible Organizations
The below following are the
Project Execution Agency (PEA) eligible for financial assistance under the
scheme.
Public and Private Companies
Limited liability Partnerships
Corporate entity
Proprietorship firms
Partnership firms
Joint Ventures
Central and State Public Sector
Undertakings
Farmer Producer Organizations
(FPOs)
Non Governmental Organizations
(NGOs)
Cooperatives
Self-Help Groups (SHGs)
Other Conditions
The net worth of the PEA should
not be less than 1.5 times the grant amount.
The PEA should provide 20% of the
total project cost as equity in general areas, and for the North East States,
10% of the total project cost to be provided.
PEA should obtain term loan from
the Bank or Financial Institution for an amount of less than 20% of the project
cost.
Any applicant who has availed
financial assistance for a project under this scheme will not be eligible to
apply for another project under the same scheme until one year after
commencement of the earlier project.
The Agro-processing cluster will
be sanctioned in the same district where the Central Processing Centre (CPC) of
Mega Food Park (MFP) is situated. The promoters, who have been sanctioned for
Mega Food Parks, will be eligible under the scheme after completion of the MFP.
Documents Required
The following documents are to be
furnished at the time of applying for the scheme.
Chartered Accountant certificate
for actual expenditure on each of the components of the project duly certified
by the PEA has to be enclosed.
Statutory Clearances / Approvals
for power, water connections, etc., from the Pollution Control Board, has to be
submitted.
Item wise and cost wise details
of Technical civil works duly certified by authorised Civil Engineer have to be
enclosed.
Item wise and cost wise details
of Plant and Machinery duly certified by authorised Mechanical Engineer have to
be enclosed
Statement of TRA from the Bank or
Financial Institution relating to the project.
Proof of setting up food
processing units along with copies of licenses issued under the Food Safety and
Standards Act has to be enclosed.
Certificate from the concerned
bank or financial institution which has sanctioned 100% term loan for the
project has to be submitted.
Declaration of project completion
and the start of commercial operation, duly certified by the bank.
Online Application Procedure for
Agro Processing Cluster
To apply for Agro Processing Cluster scheme, follow the steps which are
mentioned below:
Step 1: Please, visit the
official portal of Ministry of Food Processing Industries (MOFPI).
Step 2: Now, select the name of
the scheme from the list.
Agro Processing Cluster - Login
PageAgro Processing Cluster - Login Page
Step 3: Enter the user name and
password to access the particular application form.
Step 4: Fill the application form
with the necessary details and submit the form online along with the required
documents.
The application form for
agro-processing cluster scheme is reproduced below for quick reference.
Step 5: On successful submission
of the completed application on the Ministry’s portal, an acknowledgement
number of the application will be sent on registered email IDs to the applicant
for future reference.
Note: Subsequently, hard copy has
to be sent by the applicant directly to MOFPI within 10 working days after
successful uploading of the online application.
Release of Grant
The first instalment of 35% of the
total approved grant is released to the PEA after acquiring an expenditure of
35% of the bank term loan and 35% promoters contribution or equity.
The second instalment of 40% of
the total approved grant is released after acquiring an expenditure of 75% of
the term loan from the bank and 75% of promoters’ contribution or equity.
The final instalment of 25% of
the approved is on completion of the project and submission of requisite
documents.
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