Agro & Food Processing Cluster (Scheme Overview)


Scheme Overview Sponsoring Authority: MoFPI (Ministry of Food Processing Industries)

Objective: ‘The major objectives of the scheme are:

  1. Development of Modern infrastructure to encourage Entrepreneurs to setup food processing units based on Cluster Approach closer to production areas.

  2. To provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer

  3. To create effective backward and forward linkages by linking groups of producers / farmers to the processors and markets through well-equipped supply chain


Patten of Assistance:

  • 1. 35% of Eligible cost for General Areas

  • 2. 50% of Eligible cost for Difficult Areas / SC / ST promoters

  • 3. Max-Rs. 10 Cr per project


Exclusions in Eligible Project Costs

1. Cost of Land

2. Pre operative expenses

3. Margin money for working capital

Who Are Eligible

1. Project Executing Agencies (PEA) can be any one of the following:

  • PSUs

  • Joint ventures

  • NGOs

  • Self Help Groups (SHGs)

  • Farmer Producer Organizations (FPOs)

  • Private companies

  • Partnership firms

  • eNogaene

2. Following can be the objective for the promoters

  • Promoters who are willing to setup own units in the cluster and also allow utilization of common infrastructure to the other units in the cluster

  • Promoters willing to develop common infrastructure for use by the Food processing units to be set up in the cluster by other entrepreneurs

  • Promoters willing to develop common infrastructure in the existing Cluster. Ineligible Components : Components outside boundary wall

Release of Subsidy :

1st installment release (35%) -6 months from Approval,

2st installment release (40%) - 4 months from 1st installment

3st installment release (15%) - 4 months from 2st installment

4st installment release (10%) - 6 months from 3st Installment

Refundable Security Deposit : Rs. 1,00,000/-

Post Approval Conditions :

1. General Areas :- Commercial production should start on or before 20 months from date of Approval

2. Difficult Areas / SC /ST :- Commercial production should start on or before 24 months from date of Approval