Food Processing Industry (FPI) Subsidy Rate in Puducherry

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

The FPI Subsidy in Puducherry is instituted by the Ministry of Food Processing Industries (MoFPI) of Government of India to expand business in the Food Processing Industry of the state. Any new business that is started in the state can redeem FPI subsidy in Puducherry which offers reimbursement based on investment business owners made over equipment, establishment, transport and more. The FPI Subsidy in Puducherry offers fixed power cost reimbursement of Rs 0.50 per unit for five years in Puducherry and Karaikal regions and for 7 years in Mahe and Yanam regions from the date of commencement of production. The FPI subsidy in Puducherry for businesses is designed to expand business, provide job opportunities to locals and more to boost the economic growth of the state. In the following article, you will learn about the FPI subsidy in Puducherry as well as its benefits that will support the businesses in Puducherry.

The FPI Subsidy in Puducherry is an initiative implemented by the Ministry of Food Processing Industry (MoFPI) to boost the economic growth of the state and attract investments. The FPI Subsidy in Puducherry has several benefits such as generating jobs, reducing business expenses, expanding business operations beyond local regions, and encouraging entrepreneurship for further development of the Food Processing Industry in Puducherry. The benefits that the FPI subsidy in Puducherry provides to businesses engaged in the Food Processing Industry are mentioned below.

1. Market Expansion: Local businesses can utilize the FPI subsidy in Puducherry to expand the markets beyond their region and compete in bigger regions.
2. Economic Development: The FPI subsidy in Puducherry 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 Puducherry provides job opportunities to locals and increases employment which raises the living standards of locals.
4. Cost Reduction: The FPI subsidy in Puducherry lowers transport costs for businesses and makes it sustainable and cost efficient for both businesses and consumers.
5. Encouraging Entrepreneurship: The FPI subsidy in Puducherry 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 in Puducherry, 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 Puducherry is categorized under 7 categories which are:

• Interest Subsidy

  Interest Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  25% of the annual interest amount paid	Subject to a maximum of ₹5 lakh	For a period of 5 years (applicable to units set up by persons with disabilities / Ex-servicemen)

• Employment Generation

  Employment Generation

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  20% wage/employment subsidy	Salary up to a maximum of ₹5 lakhs per annum	A period of 5 years for Puducherry and Karaikal regions; 7 years for Mahe and Yanam regions; must employ at least 10 people; 60% of employees must be from the Union Territory of Puducherry

• For Women/SC/ST Entrepreneurs

  For Women/SC/ST Entrepreneurs

  Maximum Subsidy Rate	Maximum Subsidy Amount
  45% on the investments made on land, building, plant, and machinery	Maximum of ₹75.00 lakhs

• Pollution Control

  Pollution Control

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  25%	Up to a maximum of ₹5 lakhs	Only for the units installing pollution control equipment

• Subsidy for Quality Certificates

  Subsidy for Quality Certificates

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of the cost of quality certification	With a ceiling of ₹2 lakhs	Assistance will be granted only to the eligible MSMEs for a maximum of 3 quality certifications

• Assistance for Intellectual Property Protection Support

  Assistance for Intellectual Property Protection Support

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50%	Subject to a maximum of ₹2 lakhs	For obtaining domestic patent
  	Subject to a maximum of ₹5 lakhs	For obtaining international patent

• Market Development Support Assistance

  Market Development Support Assistance

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of total rent and literature and display material	Subject to a maximum of ₹5 lakhs	Only for MSME units participating in international trade fairs as part of an industry association

The aim of the FPI subsidy in Puducherry is to improve the economy and the financial standing of local businessmen. The following are the features of FPI subsidy in Puducherry:

• Improve in Prospect BuyerVarious types of benefits are offered to potential buyers such as individuals, food processing industries (FPI), exporters, etc., to be effective facilitators.
• Frequent Disbursement of LoansThe loan and FPI subsidy in Puducherry will be disbursed in phases over 3-5 years with intervals of 3-6 months to match the implementation period.
• Simple Disbursement of LoanWhen no revenue is being generated at the start of the project implementation, during the 'moratorium' period, interest charged on the portion of the loan that has been paid out is calculated using simple interest. Compound interest is applied once the moratorium period is over, although the interest diminishes over time.