The Union Minister of Food Processing Industries recently attended the Independent Management Advisory Committee (IMAC) meeting. The purpose of the meeting was to review proposals submitted under the Scheme for Creation of Infrastructure for Agro-Processing Cluster (APC) of Pradhan Mantri Kisan Sampada Yojana (PMKSY).
Key Decisions Reached During the IMAC Meeting
During the meeting, the IMAC approved 7 projects with a combined budget of Rs. 234.68 crore, which includes grants-in-aid of Rs. 60.87 crore. These projects, located in Meghalaya, Gujarat, Madhya Pradesh, Karnataka, and Maharashtra, are expected to generate private investment worth Rs. 173.81 crore and create 7750 jobs.
Understanding the Scheme for Creation of Infrastructure for Agro-Processing Cluster
Introduced in May 2017 as a part of PMKSY, this scheme seeks to promote the establishment of APCs across India. Its main goals include development of modern infrastructure, introduction of shared facilities, and encouragement for entrepreneurs to start food processing units using a cluster-based approach. This is done by linking producer or farmer groups to processors and markets. Through these efforts, wastage of surplus produce can be minimized and the value of agricultural and horticultural products can be enhanced. This, in turn, benefits farmers by increasing their income and spawns local employment opportunities.
There are two essential components to each APC under this scheme, the Basic Enabling Infrastructure, like roads, power supply, and drainage, and Core Infrastructure/Common Facilities such as warehouses and sorting facilities.
To establish an APC, a minimum of 5 food processing units and an investment of Rs. 25 crore is required. Additionally, at least 10 acres of land should be available for a minimum of 50 years.
Overview of Pradhan Mantri Kisan Sampada Yojana
The Ministry of Food Processing Industries (MoFPI) first introduced the Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA) in 2016. It initially had an allocation of Rs. 6,000 crores for the period of 2016-20. In 2017, it was renamed as the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
The scheme is under the central sector and has several objectives including supplementing agriculture, developing processing and preservation capacities, modernising existing food processing units, and reducing wastage through value addition.
The PMKSY includes seven component schemes: Mega Food Parks, Integrated Cold Chain and Value Addition Infrastructure, Infrastructure for APC, Creation of Backward and Forward Linkages, Expansion of Food Processing and Preservation Capacities, Food Safety and Quality Assurance Infrastructure, and Human Resources and Institutions.
PMKSY provides capital subsidies in the form of grants-in-aid, between 35% to 75% of the eligible project cost up to a maximum specified limit, to investors undertaking infrastructure, logistic projects, and setting up food processing units in the country.