Food Processing Industry (FPI) Subsidy in Uttarakhand | FPI Subsidy Rate

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

The FPI Subsidy in Uttarakhand is instituted by the Ministry of Food Processing Industries (MoFPI) of the Government of India to promote the food processing industries among businesses in Uttarakhand. Any new business that is started in the state can redeem FPI subsidy in Uttarakhand which offers reimbursement based on the amount of investment business owners made over equipment, establishment, transport and more. The FPI Subsidy offers Grant-in-Aid for value addition and processing infrastructure including frozen storage/ deep freezers associated and integral to the processing and for for irradiation facilities up to 75% for North East States, Himalayan States, ITDP Areas & Islands with a maximum subsidy of Rs 10 crore per project.

The FPI subsidy in Uttarakhand is designed for expansion of businesses, providing job opportunities to locals and more in order to boost the growth of economy and sales within the state. In the following article, you will learn about the FPI subsidy rate in Uttarakhand as well as its benefits that will support the businesses in Uttarakhand.

The FPI Subsidy in Uttarakhand aims to boost the economic growth of the state by attracting investments and providing jobs. The FPI Subsidy in Uttarakhand 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. The importance of the FPI Subsidy In Uttarakhand for the advancement of the Food Processing Industry is written below.

1. Market Expansion: Local businesses can utilize the FPI Subsidy in Uttarakhand to expand their markets beyond their region and compete in bigger regions.
2. Economic Development: The FPI Subsidy in Uttarakhand has a positive impact on the local economy as it supports businesses to improve the import and export of goods.
3. Job Creation: The FPI Subsidy in Uttarakhand provides job opportunities to locals and increases employment, resulting in the betterment of living standards.
4. Cost Reduction: The FPI Subsidy in Uttarakhand helps to lower transport costs for businesses, making the transport of goods and services sustainable and cost-efficient for both businesses and consumers.
5. Encouraging Entrepreneurship: The FPI Subsidy in Uttarakhand also makes it easier to start up new businesses and helps to create a more lively and varied local economy.

The FPI Subsidy In Uttarakhand offers the maximum subsidy amount to businesses to ensure that the scheme aids in prevention of exploitation or unfairness of the intermediary. The FPI subsidy in Uttarakhand is categorized under 11 categories which are:

• Capital Investment Subsidy Scheme for Construction/Expansion/Modernization of Cold Storage and Storages for Horticulture Products

  Capital Investment Subsidy Scheme for Construction/Expansion/Modernization of Cold Storage and Storages for Horticulture Products

  Credit linked back ended subsidy for	Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Cold Storage Unit Type 2 - with multiple temperature zones and basic material handling equipment	50% of the cost of project for capacity above 5000 per month	i) Up to 5000 per month ii) 5001 to 6500 per month iii) 6501 to 8000 per month iv) 8001 to 10000 per month	i) Rs 10000 per month ii) Rs 9500 per month iii) Rs 9000 per month iv) Rs 8500 per month
  Cold Storage Unit Type 2 with add on technology for Controlled Atmosphere		Rs 10,000 per month for add on components of controlled atmosphere technology	Projects with Capacity above 5000 per month up to 10000 per month as per Type 2 rates given above
  Technology Induction and Modernization of Cold-Chain		Rs 5 Crore at Rs 5000 per month	For maximum capacity of 10000 per month
  Refrigerated Transport vehicles	50% of cost	For storage capacities between 9 to 15 per month	For 15 per month (For storage capacities between 9 per month and 15 per month, the subsidy amount is calculated on a pro-rata basis)

• Mega Food Park Scheme

  Mega Food Park Scheme

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  75% of the project cost	Ceiling of Rs 50 crore	One time Capital Grant (excluding land cost)

• Integrated Cold Chain & Value Addition Scheme

  Integrated Cold Chain & Value Addition Scheme

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of total cost of plant & machinery and technical civil works	Maximum Rs 10 crore per project	Only for storage infrastructure, including pack house, pre-cooling unit, ripening chamber, and transport infrastructure.

• Scheme for Creation/Expansion of Food Processing & Preservation Capacitiess

  Scheme for Creation/Expansion of Food Processing & Preservation Capacitiess

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of the eligible project cost	Maximum Rs 5 crores

• Scheme for Infrastructure for Agro Processing Clusters

  Scheme for Infrastructure for Agro Processing Clusters

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of eligible project cost	Up to Rs 10 crores

• Scheme for Creation of backward and forward linkages

  Scheme for Creation of backward and forward linkages

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  50% of eligible project cost	Maximum Rs 10 crores	The grant is provided only in respect of technical civil work and eligible plant & machinery

• Scheme for Food Safety & Quality Assurance Infrastructure

  Scheme for Food Safety & Quality Assurance Infrastructure

  Maximum Subsidy Rate	Maximum Subsidy Amount
  Reimbursement of expenditure towards implementation of HACCP/ISO Standards/ Food safety/ Quality Management Systems at 75% of eligible project cost	Up to Rs 22 Lakhs

• Establishment of New Industrial Units and Existing Industrial Units on Substantial Expansion

  Establishment of New Industrial Units and Existing Industrial Units on Substantial Expansion

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  30% of the investment in Plant and Machinery	Up to Rs 5 crores	Only for all eligible new industrial units and existing industrial units on their substantial expansion in the manufacturing and service sector located anywhere in the State will be provided Central Capital Investment Incentive for access to credit (CCIIAC)

• Horticulture Mission for North East & Himalayan States (Integrated Post Harvest Management)

  Horticulture Mission for North East & Himalayan States (Integrated Post Harvest Management)

  Subsidy Categories	Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  			General Areas	Hilly & Scheduled areas for individual entrepreneurs
  Pack House (on field collection and grading center)	50% of capital cost	Rs 4 lakh/unit with size of 9 M x 6	Up to Rs 2 lakh	--
  Integrated pack house (facilities for conveyor belt, sorting, grading units, washing, drying and weighing)	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 50 lakh/unit with size of 9 M x 18 M	Up to Rs 17.5 lakh of the cost of project	Up to Rs 25 lakh of cost
  Pre-cooling unit	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 25 lakh/ unit with capacity of 6 per month	Up to Rs 8.75 lakh of the cost of project	Up to Rs 12.5 lakh of cost
  Cold room (staging)	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 15 lakh/unit with capacity of 30 per month	Up to Rs 5.25 lakh of the cost of project	Up to Rs 7.5 lakh of cost
  Mobile pre cooling unit	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 25 lakh	Up to Rs 8.75 lakh of the cost of project	Up to Rs 12.5 lakh of cost
  Cold Storage Units (Construction, Expansion and Modernisation) Type 1 (basic mezzanine structure with large chamber (of >250 per month) type with single temperature zone). Type 2 (PEB structure for multiple temperature and product use, more than 6 chambers (of < 250 permonth) and basic material handling equipment). Type 2 with add on technology (for controlled atmosphere)	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 8000 per month (max 5000 per month capacity) Rs 10000 per month (max 5000 per month capacity) Additional Rs 10000 per month for add on components of controlled atmosphere technology	Up to Rs 1.4 crore of the cost of project Up to Rs 1.75 crore of the cost of project Up to Rs 1.75 crore of the cost of project	Up to Rs 2 crore of cost Up to Rs 2.5 crore of cost Up to Rs 2.5 crore of cost
  Technology induction and modernization of cold-chain	i) Credit linked back-ended subsidy at 35% ii) 50%	Up to Rs 2.5 crores for modernization of PLC equipment, packaging lines, dock levelers, advanced graders, alternate technologies, stacking systems, modernization of insulation, refrigeration, and more.	Up to Rs 87.5 lakh of the cost of project	Up to Rs 125 lakh of cost
  Refrigerated transport vehicles	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 26 lakh for 9 months (NHM & HMNEH) and prorate basis for lesser capacity but not below 4 per month	Up to Rs 9.1 lakh of the cost of project	Up to Rs 13 lakh of cost
  Primary/ Mobile/ Minimal processing unit	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 25 lakh/unit	Up to Rs 10 lakh of the capital cost of project	Up to Rs 13.75 lakh in case
  Ripening chamber	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 1 lakh per month	Up to Rs 1.5 crore of the capital cost of project	Up to Rs 1.5 crore for a maximum of 300 per month per beneficiary
  Evaporative/ low energy cool chamber (8 per month)	50%	Rs 5 lakh/unit	Up to Rs 2.5 lakh	--
  Preservation unit (low cost)	50% of total cost	Rs 2 lakh/unit for new unit and Rs 1 lakh/unit for upgradation	Subsidy amount Maximum Rs 1 lakh for new unit and Rs 50,000 for upgradation	--
  Low cost onion storage structure (25 per month)		Rs 1.75 lakh/per unit	Up to Rs 87,500	--
  Pusa zero energy cool chamber (100 kg)		Rs 4000 per unit	Up to Rs 2000	--
  Integrated cold chain supply system	i) Credit linked back-ended subsidy at 35% ii) 50%	Project based project should comprise of minimum two components listed under 1 to 13	Up to Rs 2.1 crore of the project	Up to Rs 3 crore of cost per beneficiary

• Horticulture Mission for North East & Himalayan States (Establishment of Marketing Infrastructure for Horticulture Produce in Government/Private/Cooperative Sector)

  Horticulture Mission for North East & Himalayan States (Establishment of Marketing Infrastructure for Horticulture Produce in Government/Private/Cooperative Sector)

  Subsidy Categories	Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Terminal market	25% to 40%	Rs 150 crore/project	Limited to Rs 50 crore as Public-Private Partnership mode through competitive bidding, in accordance with operational guidelines issued separately.
  Wholesale markets	i) Credit linked back-ended subsidy at 25% ii) 33.33%	Rs 100 crore/project	i) Up to Rs 25 crore of the capital cost of the project in general areas. ii) Up to Rs 33.33 crore in case of Hilly & Scheduled areas, per beneficiary.
  Rural markets/apni mandies/direct markets	i) Credit linked back-ended subsidy at 40% ii) 55%	Rs 25 lakh	i) Up to Rs 10 lakh of the capital cost of the project in general areas. ii) Up to Rs 13.75 lakh in case of Hilly & Scheduled areas, per beneficiary.
  Retail markets/outlets (environmentally controlled)	i) Credit linked back-ended subsidy at 35% ii) 50%	Rs 15 lakh/unit	i) Up to Rs 5.25 lakh of the capital cost of the project in general areas. ii) Up to Rs 7.5 lakh in case of Hilly & Scheduled areas, per beneficiary.
  Static/Mobile vending cart/platform with cool chamber	50% of total cost	Rs 30,000/unit	Up to Rs 15,000
  Functional infrastructure (Collection, sorting/grading, packing units, etc., Quality control/analysis lab)	i) Credit linked back-ended subsidy at 40% ii) 55%	Rs 15 lakh Rs 2 crore	i) Up to Rs 6 lakh of the capital cost of the project in general areas and 55%. ii) Up to Rs 8.25 lakh in case of Hilly & Scheduled areas, per beneficiary. i) Up to Rs 200 lakh of the total cost to the public sector and 50%. ii) Up to Rs 100 lakh of cost to the private sector as credit linked back ended subsidy.
  Gravity operated rope way in hilly areas	Credit linked back-ended at 50% of capital costs	Rs 15 lakh/km	Up to Rs 7.5 lakh of capital costs in Hilly areas.

• Horticulture Mission for North East & Himalayan States (Food Processing) - Establishment of Horticulture Based Food Processing Units

  Horticulture Mission for North East & Himalayan States (Food Processing) - Establishment of Horticulture Based Food Processing Units

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  Capital Investment Assistance of 50% of project cost	Rs 8 crore/unit	Up to Rs 4 crore in the State of Uttarakhand

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

The Food Processing Industry (FPI) subsidy in Uttarakhand aims to boost the economy and financial standing of local businessmen in the region. The following are some of the features of FPI subsidy in Uttarakhand:

• Disbursement of Loan Will Be Simple: When no revenue is generated at the beginning of the project implementation, simple interest is used to calculate the interest on the portion of the loan that has been paid out during the "moratorium" phase. After the moratorium phase is over, all loans have compound interest but the interest rate is progressively reduced.
• Frequent Disbursement of Loans: To follow up the implementation period, the loan and FPI subsidy will be disbursed in phases over a tenure of 3 to 5 years with intervals of 3 to 6 months.
• Improve in Prospect Buyer: Various advantages are provided to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.