Food Processing Industry (FPI) Subsidy Rate in Bihar

Updated on December 16, 2024 12:25:38 PM

The Capital Investment Subsidy schemes were instituted by the Ministry of Food Processing Industries (MoFPI) of the Government of India in the food processing industry to promote the business in Bihar. Any new business that is started in the state is eligible to redeem subsidy plans which offer reimbursement based on the amount of investment business owners made over equipment, establishment, transport and more.

The subsidy plans for entities in Bihar are designed for the expansion of businesses and to create job opportunities and more through the FPI subsidy to boost the growth of economy and sales. In the following article, you will learn about the FPI subsidy rate in Bihar as well as its benefits that will aid the businesses in Bihar through these FPI subsidy schemes.

The benefits of the subsidy rates in the Food Processing Industry (FPI) in Bihar are written below.

1. Market Expansion: Local businesses can utilize the FPI subsidy to expand the markets beyond their region and compete in bigger regions.
2. Economic Development: The FPI subsidy has a positive impact on the local economy as it supports businesses to improve import and export of goods.
3. Encouraging Entrepreneurship: The FPI subsidy also makes it easier to start up new businesses and helps to create a more lively and varied local economy.
4. Job Creation: The FPI subsidy in Bihar provides job opportunities to locals and increases employment which results in betterment of living standards.
5. Cost Reduction:The FPI subsidy helps to lower transport costs for businesses in Bihar, which makes transport of goods and services sustainable and cost efficient for both businesses and consumers.

Under the Food Processing Industry (FPI) subsidy rate in Bihar, the maximum subsidy amount is granted to ensure that the scheme aids in prevention of exploitation or unfairness of the intermediary. The subsidy rate in Bihar is categorized under 4 classes which are:

• Interest Subsidy- Interest subvention

  Maximum subsidy Rate	Maximum subsidy Amount
  The overall limit of this subvention for the high priority sector will be 50% of the approved project cost.	The upper limit of this subvention shall be Rs 20 crore

• Interest Subsidy- Private Industrial Park

  Maximum Subsidy Rate	Maximum Subsidy Amount
  A private industrial park would be eligible for an interest subvention at the rate of 10% or actual rate of interest on term loan, whichever is lower to the extent of 35% of the approved project cost	Subject to a limit of Rs. 50 crore

• VAT/CST/SGST/TAX Exemption/Reimbursement- Tax related incentive

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  All new units will be entitled to avail 100% reimbursement against the admitted SGST deposited in the account of the state government (excluding strictly any tax paid by them arising out of a purely trading business)	For a period of 5 years from the date of commencement of commercial production	Only for male
  		Only for female/ SC/ ST/ Special class

• Employment Cost Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50%	Maximum Rs 500	Only for male
  100%	Maximum Rs 1000 of contribution made towards ESI/EPF	Only for female/ SC/ ST/ Special class

The Food Processing Industry (FPI) subsidy in Bihar aims to boost the economy and financial standing of local businessmen in the region. The following are some of the features of FPI subsidy in Bihar:

• Improve in prospect buyer for FPI subsidy in Bihar: Various advantages are provided to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.
• Disbursement of loan will be simple: The "moratorium" phase is the period when no revenue is generated at the beginning of the project implementation, hence, simple interest is used to calculate the interest on the portion of the loan that has been paid out during the "moratorium" phase. After the moratorium phase is over, all loans have compound interest, although the interest rate is progressively reduced.
• Frequent disbursement of loans: To follow up the implementation period, the loan and FPI subsidy will be disbursed in phases over a tenure of 3 to 5 years with intervals of 3 to 6 months.