Food Processing Industry (FPI) Subsidy Rate in Telangana

Updated on December 16, 2024 12:25:40 PM

The Ministry of Food Processing Industries (MoFPI) of the Government of India instituted the FPI subsidy in Telangana for advancement of the food processing industry and to encourage entities to set up business in the state. Any business established in the food processing industry is eligible for FPI subsidy in Telangana and get benefits such as financial assistance and incentives based on the investments made over equipment, establishment, transport and more. The FPI subsidy in Telangana for businesses aims to expand business beyond the local region, provide job opportunities and more to strengthen the economy and boost sales in the food processing industry of the state. In this article, you will learn the complete insights of the FPI subsidy in Telangana, along with its benefits that will help the businesses in the state through subsidy programs.

The FPI Subsidy in Telangana is prominent to boost the economic growth of the state and attract investments, provide jobs, reduce business expenses, expand business operations and encourage entrepreneurship for further advancement of the Food Processing Industry in Telangana. Some of the benefits of the FPI subsidy in Telangana for businesses in the Food Processing Industry are mentioned below.

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

The FPI subsidy in Telangana 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 Telangana is categorized under 4 classes which are:

• Power/Electricity Subsidy

  Power/Electricity Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Power rebate of Rs 2 per unit for units established in the special food processing zones	Not Specified	For 5 years from the date of commencement of commercial production
  Fixed power cost reimbursement at Rs 1 per unit for MSME
  Fixed power cost reimbursement @ Rs 1 per unit for Medium Enterprises & Large Industries

• Capital Subsidy

  Employment Generation

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Capital grant of 15%	Up to Rs 20 lakh (over and above any capital grant available from MoFPI and/or state industrial policy)	Only for units established by SCs, STs, and Minorities
  Land cost rebate of 33%	Up to Rs 20 lakhs
  Capital grant of 15%	Up to Rs 1 Crore (over and above capital grant available from MOFPI)	Only for units established by SHGs and FPOs
  Land cost rebate of 33% (land cost rebate of 25% shall be extended for the first 20% plots as early bird)	Up to Rs 20 lakhs
  25% rebate in land cost	Rs 10 Lakhs in Industrial Estates/Industrial Parks	Only for MSMEs
  25% Land conversion charges for industrial use	Rs 10.0 lakhs
  15% investment subsidy on fixed capital investment	Rs 20 lakhs
  25% rebate in land cost	Rs 10 Lakhs in Industrial Estates/Industrial Parks	Only for Medium Enterprises & Large Industries
  25% Land conversion charges for industrial use	Rs 10.0 lakhs	Only for Medium Enterprises
  Grant-in-aid of 35% of project cost	Up to Rs 10 crores	Only for Development of Logistics and Supply Chain Infrastructure for Food Produce
  Grant-in-aid of 50%		Only for Development of Logistics and Supply Chain Infrastructure for frozen storage

• Interest Subsidy

  Interest Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Interest subvention of 75% of the total interest payable on the term loan of the unit	Not exceeding a total of Rs 2 Crores	Only for units established in the Special food processing zones
  0% Interest subvention of the interest payable on term loan (over and above 75%)	Not exceeding Rs 2 Crores	For units established by SCs, STs, and Minorities
  10% interest subvention of the interest payable on term loan (over and above 75%)		For units established by SHGs and FPOs

• Other Subsidies

  Other Subsidies

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% Reimbursement of cost involved in skill upgradation and training the local manpower	Limited to Rs 2000 per person	Only for MSMEs, medium enterprises, and large industries
  25% subsidy on specific cleaner production measures	Limited to Rs 5 Lakhs
  50% subsidy on the expenses incurred for quality certification/ patent registration	Limited to Rs 2 Lakhs	Only for MSMEs

Tabulated below are above listed categories of FPI subsidy in Telangana along with the maximum subsidy rate, maximum subsidy amount and the limitations of the FPI subsidy plan.

The FPI subsidy in Telangana focuses on improving the economic and financial condition of local businessmen. The following are the features of FPI subsidy in Telangana for the food processing industry:

• Simple Disbursement of Loan: During the start of the project implementation, the "moratorium" phase when no revenue is being generated, interest charged on the portion of the loan that is paid is calculated using simple interest. After the moratorium period is over, compound interest is charged although the interest is reduced gradually.
• Improve in Prospect Buyer: Various advantages are offered to potential buyers, including consumers, food processing industries, exporters, and more.
• Frequent Disbursement of Loans: To follow up the implementation period, the loan and FPI subsidy in Telangana will be disbursed in phases over a tenure of 3 to 5 years with intervals of 3 to 6 months.