Food Processing Industry (FPI) Subsidy Rate in Meghalaya

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

The FPI Subsidy in Meghalaya is an initiative that was implemented by the Ministry of Food Processing Industry (MoFPI) that promotes economic growth of the state by attracting investments and providing jobs. The FPI Subsidy in Meghalaya lowers operational cost of businesses, expands business beyond local regions, creates job opportunities and encourages entrepreneurship for further development of the Food Processing Industry in the state. Some of the benefits of the FPI subsidy in Meghalaya for development of the Food Processing Industry (FPI) are written below.

1. Job Creation: The FPI subsidy in Meghalaya creates jobs for locals and provides employment which results in improvement of living standards.
2. Economic Development: The FPI Subsidy in Meghalaya has a positive impact on the local economy as it supports businesses to improve import and export of goods.
3. Market Expansion: Local businesses can use the FPI Subsidy in Meghalaya to expand the markets beyond their region and compete in bigger markets.
4. Encouraging Entrepreneurship: The FPI Subsidy in Meghalaya makes it easier to start a new business and helps create a more lively and varied local economy.
5. Cost Reduction: The FPI Subsidy in Meghalaya lowers transport costs for businesses in Meghalaya and makes it sustainable and cost efficient for both businesses and consumers.

Under the FPI Subsidy in Meghalaya, 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 in Meghalaya is categorized under 5 categories which are:

• Power/Electricity Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  30 % on power tariff for loads up to 2 MW	Ceiling of ₹25.00 lakh per annum	For a period of 5 (five) years from the date of commercial production for manufacturing process only
  50 % on the cost of Generating Sets including Non-Conventional/Renewable Energy Generating Sets	Ceiling of ₹20.00 lakh	Not Specified
  100 % subsidy on drawl of power line of 20 KV and above including cost of transformer(s)	Subject to a maximum limit of ₹10.00 lakh	Provided that the location has been approved by the Government
  50 % subsidy on the cost incurred on service connection	Subject to a maximum of ₹2.00 lakh	Excluding internal wiring

• Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  State Capital Investment Subsidy on cost of Factory Building & Plant & Machinery at 35%	Subject to a ceiling of ₹7.00 lakh	For Micro Enterprise
  State Capital Investment Subsidy on cost of Factory Building & Plant & Machinery at 30%	Subject to a ceiling of ₹75.00 lakh	For Small Enterprises

• Interest Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  4% on interest paid to Banks/Financial Institutions on term loans (excluding working capital loans)	Ceiling of ₹1.00 lakh per annum	For a period of 5 years from the date of disbursement of loan

• Laboratory Equipment

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Subsidy at 50 % on cost of Laboratory Equipment for the purpose of quality control and ISI/BIS certification	Subject to a maximum of ₹5.00 lakh	Not Specified

• Subsidy on Pollution Control Measures

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% subsidy on the cost of pollution control measures	Subject to a maximum of ₹25.00 lakh	Applicable for medium/large/mega large/ultra large enterprises

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

1. Subsidy at 75%: on charges payable to statutory bodies for any permission or registration.
2. Subsidy at 75%: on procurement of know-how from a well-established and approved Research and Development Organization up to Rs 3 lakh.
3. 100% subsidy on the cost: incurred on preparation of Feasibility/Project Report subject to a maximum of Rs 50,000 for Micro Enterprise and Rs 1 lakh for Small Enterprises.
4. Subsidy at 75% of the applicable Stamp Duty & Registration Fees: in execution of deeds of conveyance/mortgage pertaining to loans from Financial Institutions and Banks within the State of Meghalaya subject to a maximum of Rs 3 lakh.
5. Additional subsidy at 15%: on cost of Factory Building and Plant & Machinery subject to a maximum of Rs 50 lakh for Export Oriented Units exporting minimum 25% of its installed capacity for at least 3 consecutive years (applicable for medium/large/mega large/ultra large enterprise).