Food Processing Industry (FPI) Subsidy in Uttar Pradesh | FPI Subsidy Rate

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

The FPI Subsidy in Uttar Pradesh instituted by the Ministry of Food Processing Industries (MoFPI) of the Government of India to promote the expansion of business of the food processing industry in the state. Any new business can redeem the FPI subsidy in Uttar Pradesh which offers reimbursement based on the amount of investment business owners made over equipment, establishment, transport and more. The FPI Subsidy in Uttar Pradesh also sponsors studies for certification/ declaration of an area disease free such as potato in Agra & Kannauj and Durum wheat in Bundelkhand.

The FPI subsidy in Uttar Pradesh provides a 25% Freight Subsidy on exports excluding Nepal, Bangladesh and Bhutan to the businesses to promote exportation. The FPI subsidy in Uttar Pradesh is designed to boost the food processing industry and create job opportunities for locals for economic growth of the state. In the following article, you will learn about the FPI subsidy in Uttar Pradesh as well as its benefits that will support the businesses in the state.

The FPI Subsidy in Uttar Pradesh aims to promote economic growth of the state by attracting investments and providing jobs. The FPI Subsidy in Uttar Pradesh reduces business cost, expands business beyond local regions, creates job opportunities and encourages entrepreneurship for further development of the Food Processing Industry in the state. Some of the benefits of the FPI subsidy in Uttar Pradesh for development of the Food Processing Industry (FPI) are written below.

1. Lower Costs: The FPI subsidy in Uttar Pradesh helps to lower the transportation costs, which makes goods and services cheaper for businesses and consumers alike.
2. Market Expansion: Local businesses can use the FPI subsidy in Uttar Pradesh to expand markets beyond one region and compete in bigger markets.
3. Economic Growth: The FPI subsidy in Uttar Pradesh has a positive impact on the economy of the state as it supports small-scale industries making it easier to transport goods within the country.
4. Generating Job: The FPI subsidy in Uttar Pradesh helps to create jobs by supporting small-scale industries which leads to employment of locals and improves their living standards.
5. Promoting Entrepreneurship: The FPI subsidy in Uttar Pradesh also makes it easier for new businesses to start up and helps in creating a more lively and varied local economy.

Under the FPI Subsidy in Uttar Pradesh maximum subsidy amount is granted to businesses to ensure that the scheme aids in prevention of exploitation or unfairness of the intermediary. The FPI subsidy in Uttar Pradesh is categorized under 6 categories which are:

• Incurred expenditure on plant, machinery and technical civil work for FPIs

  Incurred expenditure on plant, machinery and technical civil work for FPIs

  Maximum Subsidy Rate	Maximum Subsidy Amount
  35% of incurred expenditure	Rs 5 Crore

• Capital Subsidy

  Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  25% subsidy	Rs 1 Crore	Only in case of expansion and modernization/up-gradation

• Scheme for value addition and cold chain infrastructure

  Scheme for value addition and cold chain infrastructure

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) Subsidy of 35%	Not Specified	For infrastructure related to Cold Chain and Value Addition
  b) Subsidy of 50%	Rs. 10 Crores	For frozen storage/deep freezer, value addition and processing infrastructure

• Subsidy on solar power projects for electricity supply to processing units

  Subsidy on solar power projects for electricity supply to processing units

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) 50% subsidy	Not Specified	On solar power utilities in rural areas
  b) 90% subsidy		For women entrepreneurs in the same category

• Scheme for Creation of backward and forward linkages

  Scheme for Creation of backward and forward linkages

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  35% of eligible project cost	Subject to maximum of Rs. 5 crores

• Interest Subsidy

  Interest Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Reimbursement for a period of five years	Subject to maximum limit of Rs. 50 lakhs	For purchase of Reefer Vehicles and Mobile Pre-Cooling vans

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

The FPI subsidy in Uttar Pradesh is designed to promote agricultural development and enhance the economic development of the state. Here are the key features of the FPI subsidy in Uttar Pradesh:

• Simple Disbursement of Loan: The loan and FPI subsidy in Uttar Pradesh will be disbursed in phases over 3-5 years with intervals of 3-6 months to match the implementing period.
• Improve in Prospect Buyer: Various types of benefits or discounts can be offered to potential buyers such as individuals, food processing industries (FPI), exporters, etc., in order to serve as effective facilitators.
• Frequent Disbursement of Loans: When no revenue is generated at the start of the project implementation, interest charged on the portion of the loan that has been paid out is calculated using simple interest during the 'moratorium' period. Compound interest is applied once the moratorium period is over, but the interest lowers over time.