The Union Cabinet recently gave its approval to the Central Sector Scheme: “Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)”. This scheme is scheduled to have an outlay of Rs. 10,900 crore. The motivation behind introducing this new plan lies in the government’s drive to bolster domestic production and diminish import bills.
About the PLI Scheme
Debuted in March 2020, the Production Linked Incentive (PLI) scheme is designed to offer companies perks on incremental sales originating from products created in domestic units. This ambitious initiative is not only meant to attract foreign firms to establish operations in India but also to incentivize local businesses to instate new manufacturing facilities or extend current ones.
The PLI scheme has been accepted across a broad range of sectors including automobiles, pharmaceuticals, IT hardware, mobile phones and telecom equipment, white goods, chemical cells, and textiles.
Goals of the PLISFPI
The main objectives behind launching the PLISFPI are multifold. Foremost, it aims to aid the formation of global champions within the food manufacturing industry. It also strives to prop up select Indian food product brands enhancing their visibility and acceptance in international markets.
The scheme is also expected to multiply off-farm job opportunities and ensure that farmers receive profitable prices for their produce, thereby leading to higher income levels.
Key Features of the PLISFPI
The PLISFPI extends support to food manufacturing entities possessing a stipulated minimum level of sales and prepared to invest a certain minimum amount into expanding their processing capacity and branding internationally.
The first component of the scheme incentivizes the production of four crucial food product types: Ready to Cook/Ready to Eat foods, Processed Fruits & Vegetables, Marine Products, and Mozzarella Cheese. Additional coverage includes organic products, free-range eggs, poultry meat and egg products.
The second part of the scheme pertains to support granted for branding and marketing operations abroad.
Implementation Timeline
The implemented timeline for the PLISFPI is over a period of six years, stretching from 2021-22 to 2026-27.
Anticipated Outcomes
With the implementation of this scheme, it is expected to catalyze an expansion of processing capacity that will result in a processed food output worth Rs. 33,494 crore. It is also projected to generate employment opportunities for almost 2.5 lakh individuals by the year 2026-27.
Other Related Schemes
Alongside this scheme, other initiatives related to the Food Processing Industry have been introduced, such as the Pradhan Mantri Kisan Sampda Yojana (PMKSY).
Last Modified: February 11, 2024