Food Processing Industry (FPI) Subsidy Rate in Nagaland

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

The Ministry of Food Processing Industry (MoFPI) implemented the FPI Subsidy in Nagaland as an initiative aimed to boost the economic growth of the state by attracting investments and providing jobs. The FPI Subsidy in Nagaland minimizes the business expenses, assists to expand business operations beyond local regions, creates job opportunities for locals and encourages entrepreneurship for further development of the food processing industry in the state. Some of the benefits of the FPI subsidy in Nagaland for development of the Food Processing Industry (FPI) are written below.

1. Promote Entrepreneurship: The FPI subsidy in Nagaland also makes it easier to start up new businesses and helps to create a more lively and varied local economy.
2. Job Creation: The FPI subsidy in Nagaland creates jobs for locals and reduces unemployment which raises the living standards.
3. Economic Growth: The FPI subsidy in Nagaland impacts the local economy positively by supporting businesses to improve import and export of goods.
4. Market Expansion: Local businesses can utilize the FPI subsidy in Nagaland to expand the markets beyond their region and compete in bigger markets.
5. Reduce Expenses: The FPI subsidy in Nagaland lowers the transportational costs for businesses and makes it sustainable and cost efficient for both businesses and consumers.

The FPI Subsidy in Nagaland offers a maximum subsidy amount to ensure that the scheme aids in prevention of exploitation or unfairness of the intermediary. The FPI subsidy in Nagaland is categorized under 4 programs which are:

• Stamp Duty Exemption

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% Stamp Duty and Registration Fee for securing loans from Financial Institutions including Mortgage of fixed assets	Not Specified	For a period of 5 years

• Subsidy for Feasibility Study Cost

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of the cost of Detailed Reports	Ceiling of ₹1.00 lakh	Eligible only for new units with investment in plant & machinery above ₹25 lakh, provided the report is prepared by a Government-approved Industrial Consultant

• Subsidy Incentives for 100% Export Oriented Units (EOU)

  Maximum Subsidy Rate	Maximum Subsidy Amount
  Additional 5% capital investment subsidy	Ceiling of ₹3.00 lakh

• Exemption on Electricity Duty

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  100%	Not Specified	For MSMEs for 8 years

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

1. Subsidy on power will be provided at the rate of 30% and 25% for connected loads up to 1 MW and above 1 MW respectively for a period of five years from the date of commercial production, subject to a maximum ceiling limit of Rs 2 lakh annually. This will be a reimbursement scheme on actual consumption of power for the manufacturing process substantiated with requisite details.
2. Government will reimburse up to 25% of the actual wage bill for local tribal employees employed by eligible units up to three years from the date of entertainment, subject to a maximum ceiling of Rs 1 lakh annually. This grant would be for a period of five years from the date of entertainment of such staff and would be given to those units where the investment in plant & machinery exceeds Rs 10 lakh and the number of employees engaged in the unit exceeds 20 numbers and where at least 50% of the employees are local tribal youth. Units availing subsidy under this scheme shall take all effective steps to ensure 75% employment of local youth over a period of five years. This subsidy will be admissible on a reimbursement basis for only those employees who complete one year of regular employment in the unit.
3. Cost of laboratory equipment for the purpose of quality control and ISI/BIS/ISO 9000 certification will be reimbursed, subject to a maximum ceiling of Rs 50,000/- in cases where it does not form part of the project cost for SSI and Rs 1 lakh in case of Large & Medium unit.
4. Transport Subsidy -
   • 50% for transportation of raw material and finished products within the NER.
   • 75% for transportation of electronic components and finished products by air transport.