Food Processing Industry (FPI) Subsidy Rate in Tripura

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

The Ministry of Food Processing Industries (MoFPI) of the Government of India implemented the FPI subsidy in Tripura for businesses in the Food Processing Industry with an aim to expand the business in Tripura. The FPI subsidy in Tripura is offered to businesses as reimbursement based on the investment they made over equipment, establishment, transport and more. The FPI subsidy in Tripura allowed for a Modern Food Park to be set up near Agartala to boost the food processing industry in the state with all necessary common facilities such as cold storage, warehouse, R&D/ Quality Control Lab, common packaging facility and more. The FPI subsidy in Tripura is implemented by the MoFPI that focuses on expansion of business to provide jobs for the locals and boost the economic growth of Tripura. In the following article, you will learn about the FPI subsidy in Tripura as well as its benefits that will support the businesses in the state.

The Ministry of Food Processing Industry (MoFPI) implemented the FPI Subsidy in Tripura to boost the economic development of the state by attracting investments and generating employment, reducing operational costs, expanding business and promoting entrepreneurship for development of the Food Processing Industry. Some of the benefits of the FPI subsidy in Tripura for development of the Food Processing Industry (FPI) are written below.

1. Lower Expenses: The FPI subsidy in Tripura makes the transportation costs for businesses sustainable and cost efficient for both businesses and consumers in Tripura.
2. Promoting Entrepreneurship: The FPI subsidy in Tripura promotes business owners to expand their business beyond the local region by easing the process to start up a new business.
3. Job Opportunities: The businesses with FPI subsidy in Tripura also generate job opportunities for locals, resulting in the rise of living standards in Tripura.
4. Market Expansion: Businesses in the local region can expand their range and compete in the bigger market due to the FPI subsidy in Tripura.
5. Economic Growth: The local economy of the state experiences a positive impact as the FPI subsidy in Tripura supports businesses in the improvement of import and export of goods.

Under the FPI subsidy in Tripura, maximum subsidy amount to prevent exploitation or unfairness of the intermediary. The FPI subsidy in Tripura is categorized under 11 programs which are:

• State Capital Investment Subsidy

  State Capital Investment Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  40% on Fixed Capital Investment	Subject to a ceiling of Rs 70 Lakhs per enterprise	Not Specified
  50% of fixed capital investment	Subject to an upper ceiling of Rs 100 Lakhs	Will be provided to Tea Processing Units set up under the Cooperative approach by small tea growers

• Interest Cost Subvention

  Interest Cost Subvention

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  5% on the Term Loan availed by the enterprises	Subject to a ceiling of Rs 10 Lakhs per year per enterprise	For reimbursement of interest paid to banks/financial institutions

• Electricity Duty Rebate

  Electricity Duty Rebate

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  25% of the power charges actually paid by the enterprise	Subject to a maximum amount of Rs 20 Lakhs per annum per enterprise	Only eligible enterprises will be allowed partial reimbursement of industrial power charges paid to Tripura State Electricity Corporation Ltd. or an approved agency

• Subsidy for Credit Guarantee Trust Fund for Micro and Small Enterprise (CGTMSE)

  Subsidy for Credit Guarantee Trust Fund for Micro and Small Enterprise (CGTMSE)

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  100% reimbursement for one-time guarantee fee and annual service fees paid for CGTMSE coverage	Not Specified	For 5 years

• Export Promotion Subsidy

  Export Promotion Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  10% of the value of goods exported	Subject to a ceiling of Rs 20 Lakhs per enterprise per annum	Reimbursement of payment shall be made on the basis of records available with Central Customs authority

• Subsidy for participation in fairs and exhibitions

  Subsidy for participation in fairs and exhibitions

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of actual expenditures incurred on traveling and transportation	Subject to an upper ceiling of Rs 50,000 per enterprise for each participation	Reimbursement of expenses shall be subject to a maximum of 2 participations in fairs and exhibitions per year

• Transport Subsidy

  Transport Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  10% of transportation cost incurred for movement of finished goods by Rail	Not Specified	The State Transport Subsidy shall be available for a period of 5 years from the date of Commercial Production

• Support to Individual Micro Enterprises

  Support to Individual Micro Enterprises

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Credit-linked capital subsidy at 35% of the eligible project cost	Maximum ceiling of Rs 10 lakh per unit	Beneficiary contribution should be a minimum of 10% of the project cost with the balance being loan from the Bank

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

The FPI Subsidy in Tripura was implemented with the goal to boost the economy and financial status of local businesses in the region. The following are some of the features of FPI subsidy in Tripura:

• Simple Disbursement of Loan: During the “Moratorium” phase, when no revenue is generated initially after the project implementation, interest on the loan that has been paid is calculated using simple interest. After the moratorium phase is over, all loans have compound interest but the interest lowers gradually.
• Improve in Prospect Buyer: Various advantages are offered to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.
• Frequent Disbursement of Loans: The loan and FPI subsidy in Tripura is disbursed in phases over a tenure of 3 to 5 years with intervals of 3 to 6 months, to follow up the implementation period.