Food Processing Industry (FPI) Subsidy Rate in Mizoram

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

The FPI Subsidy in Mizoram is prominent to boost the economic growth of the state and attract investments from national and international investors. The FPI subsidy in Mizoram provides jobs for the residents, reduces business expenses, expands business operations beyond local regions, and encourages entrepreneurship for further advancement of the Food Processing Industry in Mizoram. The benefits that the FPI subsidy in Mizoram provides to businesses engaged in the Food Processing Industry are mentioned below.

1. Cost Reduction: The FPI subsidy in Mizoram helps to lower transport costs for businesses in Mizoram and makes it sustainable and cost efficient for both businesses and consumers.
2. Encouraging Entrepreneurship: The FPI subsidy in Mizoram makes starting up a new business easier and helps to create a more lively and varied local economy.
3. Employment Generation: The FPI subsidy in Mizoram provides job opportunities to locals and decreases unemployment which results in raising the living standards in the region.
4. Market Expansion: Local businesses can utilize the FPI subsidy in Mizoram to expand the markets beyond their region and compete in bigger markets.
5. Economic Development: The FPI subsidy in Mizoram has a positive impact on the local economy as it supports businesses to improve transportation of goods.

The FPI subsidy in Mizoram offers the maximum subsidy amount to avoid exploitation or unfairness of the intermediary as the scheme aids the businesses and residents of the state. The subsidy rate in Mizoram is categorized under 6 classes which are:

• Power/Electricity Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  60% of total expenditure on power consumption	Not Specified	For micro enterprises for a period of 5 years
  50% of total expenditure on power consumption		For small enterprises for a period of 5 years
  30% of total expenditure on power consumption		For medium enterprises for a period of 5 years
  50% of the cost of Captive generating set and installation charge	Ceiling of ₹3,00,000 per unit	For 5 years only

• Power/Electricity Subsidy - Subsidy on Power Plant

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of the actual expenditure	Ceiling of ₹50,000 per unit	For 5 years only

• Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  90%	Ceiling of ₹5,000 per unit	For micro enterprises
  75%	Ceiling of ₹25,000 per unit	For small enterprises
  50%	Ceiling of ₹50,000 per unit	For medium enterprises

• Freight/Transport Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of the actual cost of transportation by railway or road	Not Specified	For new MSME unit for a period of 5 years

• Rent Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of the duly assessed rent of factory shed	Ceiling of ₹30,000 per unit per year

• Skill Development / Human Resource Development

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of the actual course fee for training	Ceiling of ₹10,000 per trainee and ₹50,000 per unit per year

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

1. The interest on loan paid by an industrial unit in excess of 8.5% will be subsidized up to a maximum of 4%.
2. Subsidy will be limited to a claim on a total amount under Rs 3,60,000/- paid by an industrial unit towards interest on term loan in a full year. However, for working capital loans, the total amount paid towards interest on which subsidy can be claimed will be limited to Rs 1,20,000/- in a full year.
3. If the unit avails the interest subsidy under NEIIPP (North East Industrial and Investment Promotion Policy), only the shortfall amount, if any, will be applicable for interest subsidy on working capital loan.
4. A 25% of the lease charge/fee of allotted developed/undeveloped land will be subsidized for a period of 5 years unless the claimable amount is not adjusted at the time of payment of such fee or charges.
5. A 25% of the amount spent by the unit on development of undeveloped land allotted to the unit will be subsidized.