Food Processing Industry (FPI) Subsidy Rate in Haryana

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

Here are the benefits of the Food Processing Industry (FPI) subsidy rate in Haryana.

1. Industrial Development: FPI subsidy can promote the growth of specific sectors, leading to specialization and competitiveness.
2. Encouraging Export: FPI Subsidies can encourage exports by reducing production costs and improving competitiveness in the global market.
3. Job Creation: By supporting industries, FPI subsidies can create employment opportunities for local residents.
4. Infrastructural Development: FPI Subsidies can be used to improve infrastructure, which is essential for business operations.
5. Economic Growth: By attracting investments and providing jobs, FPI subsidy can boost economic growth.

The Food Processing Industry (FPI) subsidy in Haryana is provided to the businesses depending on the location of the establishment which is divided into four categories mentioned below.

Under the Food Processing Industry (FPI) subsidy rate in Haryana, 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 Haryana is categorized under 13 classes which are:

• Capital Investment Subsidy for Agro and Food Processing Units

  Subsidy Rate	Subsidy Amount	Limitations
  25% Capital Investment Subsidy on FCI (fixed capital investment)	Limited to Rs 1 Cr	Only available to new units to be set-up in ‘C’ and ‘D’ category blocks

• Capital Investment Subsidy for Farmer Producer Organizations (FPOs) Agro/Food Cooperativesy

  Subsidy Rate	Subsidy Amount	Limitations
  Assistance of 25% Capital Investment Subsidy on FCI (fixed capital investment)	Limited to Rs 1 Cr	Only available to new units to be set-up only by registered FPOs and Agro/Food Cooperatives only in “C” and “D” category blocks

• Assistance for Individual Units to Set Up in Food Parks - C and D Blocks

  Subsidy Rate	Subsidy Amount	Limitations
  25% Capital Investment Subsidy on FCI (fixed capital investment)	Limited to Rs 1 Cr	For Food Parks set up in “C” and “D” category blocks.
  100% (net tax) reimbursement	Not Specified	For a period of 10 years, from the date of commencement of commercial production with a cap of 100% of fixed capital investment (FCI) in "C" and "D" category blocks.

• Assistance for Individual Units to Set Up in Food Parks - A and B Blocks

  Subsidy Rate	Subsidy Amount	Limitations
  25% Capital Investment Subsidy on FCI (fixed capital investment)	Limited to Rs 50 lakhs	For Food Parks set up in “A” and “B” category blocks
  100% (net tax) reimbursement	Not Specified	For a period of 10 years, from the date of commencement of commercial production with cap of 100% of fixed capital investment (FCI) in "A" and "B" category blocks

• Assistance to Promote Women Entrepreneurs

  Subsidy Rate	Subsidy Amount	Limitations
  8% interest subsidy on term loan	Limit of Rs 12 lakh per year	For 5 years per unit across state and the subsidy shall not exceed amount of net SGST paid during the relevant year

• Special Assistance for Acquisition of Packaging Technology

  Subsidy Rate	Subsidy Amount
  Assistance of 50% of project cost for developing/acquiring packaging technologies leading to increase in shelf life of products	Limited to Rs 20 lacs per unit

• Support for Quality and Certification

  Subsidy Rate	Subsidy Amount	Limitations
  Reimbursement of 50% of expenditure incurred in obtaining patents and other IPR subsidy including the consultant fee, government fee etc.	Limited to Rs 2 lakh per patent	Not Specified
  Reimbursement of 50% of the cost of certifications	Limit of Rs 2 lakh per unit	Only for cost of certifications such as HACCP, GMP, ISO 9000, ISO 22000, GLP and TQM for food processing units

• Support for Integrated Cold Chain and Value Addition Infrastructure

  Subsidy Rate	Subsidy Amount	Limitations
  35% Capital Investment Subsidy on project cost	Limited up to Rs 5 cr	For storage infrastructure, packaging houses, transportation infrastructure, value addition and processing infrastructure and irradiation facilities and only to "B", "C" and "D" category blocks.
  For reefer vehicles and any other movable infrastructure, assistance of 50% of capital investment subsidy	Limited up to Rs 50 lacs per project	Only up to 4 reefer vehicles/movable infrastructure per project.

• Support for Setting Up/Upgradation of Food Testing and Calibration Labs

  Subsidy Rate	Subsidy Amount	Limitations
  Assistance limited to 25% of project cost would be provided	Limited to a maximum of Rs 75 lacs	All Agro and Food Processing Units, Universities, State Government Institutions, Government Funded Organizations, R&D laboratories and CSIR recognized units in the private sector are eligible to set-up/upgrade labs under this scheme so no specified limit.

• State Renewable Energy Scheme

  Subsidy Rate	Subsidy Amount	Limitations
  State will provide interest subsidy on term loan to the tune of 5%	Maximum up to Rs 5 lakhs per year	AFor three years

• Safety Compliance

  Subsidy Rate	Subsidy Amount	Limitations
  75% reimbursement of expenses incurred on safety audit	Subject to maximum of Rs. 1 lakh for conducting safety audit	No subsidy for safety audit in case audit recommendations are not implemented.
  50% subsidy on cost of capital equipment and capital expenditure required for undertaking safety measures	Subject to maximum of Rs 20 lakh in ‘D’ category blocks, Rs 15 lakh for ‘C’ category blocks, Rs 10 lakh for ‘B’ category blocks and Rs 5 lakh for ‘A’ category blocks	Once in every 5 years [for compliance of Safety provisions under Factory Act, 1948].

• SME Exchange Equity

  Subsidy Rate	Subsidy Amount	Limitations
  One-time support of 25% of expenditure	Up to Rs 5 Lakh	Only for raising funds through the SME exchange platform after successful raising of equity.

• Enterprise Resource Planning Adoption

  Subsidy Rate	Subsidy Amount
  Financial assistance up to 75% of capital cost	Up to Rs 5 Lakh for adopting ERP system

The Food Processing Industry (FPI) subsidy in Haryana 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 Haryana:

• Improve in prospect buyer for FPI subsidy in Haryana: Various advantages are provided to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.
• 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.
• 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.
• Employment Generation: These programs for FPI subsidy rate in Haryana also aim to create jobs in the food processing industry, which plays a key role in boosting the local economy.

The additional information regarding the FPI subsidy in Haryana in the Food Processing Industry (FPI) is written below.

1. Special Support to promote milk processing of indigenous breed of cows in Haryana- the state government shall provide this additional support to the tune of 10% in capital investment subsidy (i.e. 45% capital investment subsidy) up to 5 Cr. to units setting-up infrastructure in form of separate processing and packaging line for milk of indigenous breed of cows in “B”, “C” and “D” category blocks.
2. To address the shortfall of skilled manpower in the Food processing sector, the state government shall provide assistance to Agro and Food Processing units/Farmers/FPOs by reimbursing 50% of the total cost of the training limited to Rs 5,000 per trainee on obtaining industry recognized skill certifications from recognized institutions.
3. Agro-based thrust sector-
   1. 7% for Micro, Small and Medium Enterprises on term loan or maximum up to Rs. 20.00 lakh per year for 7 years in ‘C’ & ‘D’ Categories Blocks.
   2. 7% for Micro, Small and Medium Enterprises on term loan or maximum up to Rs. 20.00 lakh per year for 5 years in ‘B’ Categories Blocks.
4. Thrust Sector-
   1. 6% for Micro and Small Enterprises on term loan or maximum up to Rs.20.00 lakh per year for 7 years in ‘C’ & ‘D’ Categories Blocks.
   2. 6% for Micro and Small Enterprises on term loan or maximum up to Rs.20.00 lakh per year for 5 years in ‘B’ Categories Blocks.
5. MSME-
   1. 5% for Micro and Small Enterprises on term loan or maximum up to Rs 20.00 lakh per year for 5 years in ‘C’ & ‘D’ Categories Blocks.
   2. 5% for Micro and Small Enterprises on term loan or maximum up to Rs 20.00 lakh per year for 3 years in ‘B’ Categories Blocks.
   3. 6% for women/SC/ST led Micro Enterprise on term loan or maximum up to Rs 20.00 lakh per year for 5 years in ‘B’, ‘C’ & ‘D’ Categories Blocks.
6. Investment Subsidy on net SGST for Mega Projects-
   1. 75% of Net SGST for the first 5 years, 35% for the next 3 years in 'D' category blocks with a cap of 125% of FCI.
   2. 50% of Net SGST for the first 5 years, 25% for the next 3 years in 'C' category blocks with a cap of 100% of FCI.
   3. 30% of Net SGST for the first 5 years, 15% for the next 3 years in 'B' category blocks with a cap of 100% of FCI.
7. Investment Subsidy on net SGST for Large Projects-
   1. 75% of Net SGST for the first 7 years, 35% for the next 3 years in ‘D’ category blocks with a cap of 125% of FCI.
   2. 50% of Net SGST for the first 5 years, 25% for the next 3 years in ‘C’ category blocks with a cap of 100% of FCI.
   3. 30% of Net SGST for the first 5 years, 15% for the next 3 years in B category Blocks with a cap of 100% of FCI.
8. Investment Subsidy on net SGST for Micro, Small and Medium Enterprises-
   1. 75% of Net SGST for the first 10 years, 35% for the next 3 years in ‘D’ category blocks with a cap of 150% of FCI.
   2. 75% of Net SGST for the first 7 years, 35% for the next 3 years in ‘C’ category blocks with a cap of 125% of FCI.
   3. 50% of Net SGST for the first 5 years, 25% for the next 3 years in ‘B’ category blocks with a cap of 100% of FCI.
   4. 75% of Net SGST for the first 7 years, 35% for the next 3 years in ‘B’, ‘C’ and ‘D’ category blocks with a cap of 150% of FCI for women/SC/ST led micro enterprises.