Updated on December 16, 2024 12:25:39 PM
The Food Processing Industry (FPI) of Chhattisgarh has implemented subsidy plans specifically designed to turn raw agricultural resources into edible foods. Chhattisgarh is widely renowned for its rich agricultural heritage, with higher rice production and it aims to develop its food processing industry to utilize its agricultural production. Development of the agricultural sector in Chhattisgarh would be a great advantage for the residents in the region as it will provide more job opportunities and aid in economic growth of the state.
The Ministry of Food Processing Industry of the Government of India has provided FPI subsidy plans based on investment of the businesses as an initiative to promote the food processing sector in Chhattisgarh. In this article, you can read about how the incentive aids in the growth of the agricultural sector of the state and what are the advantages of the Food Processing Industry (FPI) subsidy provided in Chhattisgarh.
For the development of the Food Processing Industry in Chhattisgarh, the MoFPI specifically designed and implemented the initiative of FPI subsidy for the businesses. The Ministry of Food Processing Industries (MoFPI) instituted programs like Power/Electricity Subsidy for the businesses and land premium subsidy on the allotment of land from Industrial area/ parks for Micro, Small & Medium enterprises to provide financial aid and incentives for the improvement of the food processing industry.
The FPI subsidy can be beneficial to businesses and provide financial assistance for Infrastructure, electricity, land, investments, interest rates and more to industrial units. Companies should be aware of the FPI subsidy programs and its benefits provided by the MoFPI to redeem the suitable plan for their business. Entities with a desire to redeem the FPI subsidy plans must meet the eligibility based on the amount of money they invest, location of their establishment, goods that they produce and the number of jobs that their business will create.
Some of benefits that the Food Processing Industry (FPI) subsidy rate provide to business in Chhattisgarh are listed below:
The Food Processing Industry (FPI) subsidy in Chhattisgarh is provided to the businesses depending on the location of the establishment which is divided into four categories mentioned below.
| Category | Areas |
|---|---|
| Category A | Highly Developed Areas: Capital cities; major industrial zones; well-developed urban areas. |
| Category B | Moderately Developed Areas: Secondary towns; developing industrial belts. |
| Category C | Less Developed Areas: Semi-urban areas; smaller towns with limited industrial growth. |
| Category D | Least Developed/Backward Areas: Rural areas; tribal areas; remote areas with low economic activity. |
Stamp duty exemption
| Subsidy Rate | Subsidy Amount | Limitations |
|---|---|---|
| 100% will be given on land allotment | Not Specified | Only applicable to proposals/units that start commercial production within 36 months from date of issue of first stamp duty exemption certificate. |
Capital subsidy (For micro small industry)
| Subsidy Rate | Subsidy Amount |
|---|---|
| Category A - 40% Fixed Capital Investment | Yearly Maximum Limit of 60 lakhs |
| Category B - 40% Fixed Capital Investment | Yearly Maximum Limit of 65 lakhs |
| Category C - 35% Fixed Capital Investment | Yearly Maximum Limit of 80 lakhs |
| Category D - 40% Fixed Capital Investment | Yearly Maximum Limit of 90 lakhs |
Capital subsidy (For Macro Industries)
| Maximum Rate | Maximum Amount |
|---|---|
| Category A - 35% Fixed Capital Investment | Yearly Maximum Limit of 70 lakhs |
| Category B - 40% Fixed Capital Investment | Yearly Maximum Limit of 80 lakhs |
| Category C - 45% Fixed Capital Investment | Yearly Maximum Limit of 100 lakhs |
| Category D - 45% Fixed Capital Investment | Yearly Maximum Limit of 110 lakhs |
Interest subsidy (For Micro and Small Industries)
| Maximum Rate | Maximum Amount | Eligible Incentive Period |
|---|---|---|
| Category A - 50% of incentive | Yearly Maximum Limit of 15 lakhs | 6 years |
| Category B - 50% of incentive | Yearly Maximum Limit of 20 lakhs | 7 years |
| Category C - 60% of incentive | Yearly Maximum Limit of 30 lakhs | 8 years |
| Category D - 70% of incentive | Yearly Maximum Limit of 40 lakhs | 10 years |
Interest subsidy (For Medium and Large Industries)
| Maximum Rate | Maximum Amount | Eligible Incentive Period |
|---|---|---|
| Category A - 35% of incentive | Yearly Maximum Limit of 30 lakhs | 5 years |
| Category B - 40% of incentive | Yearly Maximum Limit of 40 lakhs | 5 years |
| Category C - 60% of incentive | Yearly Maximum Limit of 50 lakhs | 8 years |
| Category D - 70% of incentive | Yearly Maximum Limit of 60 lakhs | 10 years |
Freight/transport subsidy
| Maximum Rate | Maximum Amount |
|---|---|
| Not Specified | Maximum amount of Rs 20 lakh per annum. |
Technology upgradation subsidy
| Maximum Rate | Maximum Amount | Limitations |
|---|---|---|
| Grant in aid of 25% | Up to Rs 50 Lakhs | Applicable only on the cost of Plant & Machinery and technical civil works. |
Cold chain, value addition, and prevention infrastructure
| Maximum Rate | Maximum Amount |
|---|---|
| Capital subsidy at 35% | Up to Rs. 5 crores per project.. |
Interest subsidy
| Maximum Rate | Maximum Amount | Limitations |
|---|---|---|
| At 6% | Maximum of Rs. 2 crore | For a period of 5 years from the date of completion of the project.. |
Setting up a primary processing center/collection center
| Maximum Rate | Maximum Amount |
|---|---|
| Grant in aid of 50% | Maximum amount of Rs. 2.5 Crores |
Purchase of new reefer vehicle
| Maximum Rate | Maximum Amount |
|---|---|
| Grant in aid of 50% | Maximum amount of Rs. 50 Lakhs |
You can learn about the above-mentioned categories of FPI subsidies in the tables above to know the maximum subsidy rate, maximum subsidy amount and the limitations of the subsidy plans.
The Food Processing Industry (FPI) subsidy rate in Chhattisgarh is designed to promote agricultural development and enhance the economic status of farmers in the region. Here are the key features of the Food Processing Industry (FPI) subsidy rate in Chhattisgarh:
The additional information regarding the FPI subsidy in Chhattisgarh in the Food Processing Industry (FPI) is written below.
| Category | Subsidy Rate | Subsidy Amount | Limitations |
|---|---|---|---|
| Category A | Reimbursement of Net State Goods and Services Tax (Net SGST) paid for a period of 7 years | Maximum limit of up to 40% of fixed capital investment | From the date of commencement of commercial production |
| Category B | Reimbursement of Net State Goods and Services Tax (Net SGST) paid for a period of 8 years | Maximum limit of up to 45% of fixed capital investment | |
| Category C | Reimbursement of Net State Goods and Services Tax (Net SGST) paid for a period of 10 years | Maximum limit of up to 55% of fixed capital investment | |
| Category D | Reimbursement of Net State Goods and Services Tax (Net SGST) paid for a period of 12 years | Maximum limit of up to 75% of fixed capital investment |
Chhattisgarh implemented the FPI subsidy to expand and boost the food processing industry and aid local business owners to enhance the standard of living in the region resulting in strengthening the economy of the state. The FPI subsidy programs in Chhattisgarh assist the business owners and offer them funds for investments, interest rates, power, land and infrastructure for the expansion of their business and to provide job opportunities to the residents of Chhattisgarh.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
To support small-scale industries, reduce transportation costs, help local businesses to expand in bigger markets, generate employment for the residents and encourage entrepreneurship, which will contribute to the overall economic development of Chhattisgarh, FPI subsidy is important.
Yes, there are specific requirements for applying for the subsidy such as documentation related to their investment, such as project proposals, loan agreements, and proof of eligibility as a farmer or group, must be provided by applicants.
The FPI subsidy is divided into four categories based on the development level of areas:
FPI Subsidies in Chhattisgarh include Power/Electricity Subsidy, Land Premium Subsidy, Stamp Duty Exemption, Capital Subsidies (for Micro, Small, and Macro Industries), Interest Subsidies (for Micro, Small, Medium, and Large Industries), and support for technology upgradation, cold chain infrastructure, and more.
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