Food Processing Industry (FPI) Subsidy Rate in Dadra & Nagar Haveli and Daman & Diu

Updated on December 16, 2024 12:25:39 PM

The schemes for food processing industries are instituted by the Ministry of Food Processing Industries (MoFPI) of the Government of India to promote the expansion of business in Dadra & Nagar Haveli and Daman & Diu. DNHDD has distinctive agricultural and food industry qualities that are structured because of their geography, culture and economic development. Any new business that is started in the state can redeem FPI subsidy plans which offer reimbursement based on the amount of investment business owners made over equipment, establishment, transport and more.

The FPI subsidy plans for businesses in Dadra & Nagar Haveli and Daman & Diu are designed for the expansion of business, provide job opportunities to locals and more through the FPI subsidy in order to boost the growth of economy and sales. In the following article, you will learn about the FPI subsidy rate in Dadra & Nagar Haveli and Daman & Diu as well as its benefits that will support the businesses in Dadra & Nagar Haveli and Daman & Diu.

The benefits that the Food Processing Industry (FPI) subsidy provides in Dadra & Nagar Haveli and Daman & Diu are mentioned 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. Job Creation: The FPI subsidy in Dadra & Nagar Haveli and Daman & Diu provides job opportunities to locals and increases employment which results in betterment of living standards.
4. Cost Reduction: The FPI subsidy helps to lower transport costs for businesses in Dadra & Nagar Haveli and Daman & Diu, which makes transport of goods and services sustainable and cost efficient for both businesses and consumers.
5. 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.

Under the Food Processing Industry (FPI) subsidy rate in Dadra & Nagar Haveli and Daman & Diu, Scheme for food processing industries provides an Interest subsidy at 60% of interest which is paid up to Rs.50 lakhs per annum and additional 10% subsidy for Food processing units established in dedicated food processing parks. The maximum subsidy amount is granted to businesses to ensure that the scheme aids in prevention of exploitation or unfairness of the intermediary. The FPI subsidy rate in Dadra & Nagar Haveli and Daman & Diu is categorized under 6 categories which are:

• Capital Investment Subsidy

  Capital Investment Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  10% of investment made in plant and machineries	Upper ceiling of Rs. 25 lakhs	Only for MSME

• Capital Subsidy

  Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of the capital cost for installing ERP systems	Subject to a maximum of Rs. 50 thousand

• Interest Subsidy

  Interest Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Interest Subsidy at 5% for loans taken from financial institutions	Upper ceiling of Rs. 30 lakhs per annum	For a period of 5 years for MSME

• Energy/Water Reimbursement

  Energy/Water Reimbursement

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  75% cost of energy/water audit conducted by a recognized institution/consultant	Subject to maximum of Rs. 50,000	Will be reimbursed only once during the operative period of scheme for MSME
  25% of cost of the equipment recommended by the auditing authority	Subject to a maximum of Rs. 20 lakhs	Will be provided only as a one-time assistance during the operative period of the scheme towards assistance of saving in consumption of Energy and Water for MSME

• Financial Assistance

  Financial Assistance

  Maximum Subsidy Rate	Maximum Subsidy Amount
  25% of the investment for technology acquisition/ collaboration and upgradation	Max. of Rs. 25 lakhs per process/product shall be provided to the enterprise

• Reimbursement of Free On Board (FOB) Expenses

  Reimbursement of Free On Board (FOB) Expenses

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  20%	Up to Rs. 20 lakhs	For 3 years for food/marine processed products

Tabulated below are above listed categories of FPI subsidy in Dadra & Nagar Haveli and Daman & Diu along with the maximum subsidy rate, maximum subsidy amount and the limitations of the FPI subsidy plan.

The Food Processing Industry (FPI) subsidy in Dadra & Nagar Haveli and Daman & Diu 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 Dadra & Nagar Haveli and Daman & Diu:

• 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.
• Improve in prospect buyer for FPI subsidy in DNHDD Various advantages are provided to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.