MoFPI revises operational guidelines for the Scheme for creation of Infrastructure for Agro Processing Clusters of PMKSY

Aug 06, 2019 | by Avantis RegTech Legal Research Team


The Ministry of Food Processing Industries (MoFPI) on August 05, 2019, decides to revise the operational guidelines for the Scheme for creation of Infrastructure for Agro Processing Clusters of Pradhan Mantri Kisan Sampada Yojna (PMKSY) for the period upto 2019-20. The scheme aims at development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach. The scheme is to be implemented in area of horticulture or agriculture production identified through a mapping exercise.

The major objectives of the scheme are:

i. To create modern infrastructure for food processing closer to production areas. 

ii. To provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer. 

iii. To create effective backward and forward linkages by linking groups of producers / farmers to the processors and markets through well-equipped supply chain.

The food processing units with a minimum aggregate investment of Rs. 25 crore will be set up in the Agro-processing cluster. These units may be set up by the promoters and associates of Project Execution Agency (PEA) and by other entrepreneurs. The investment in these units will not be eligible under this scheme.

The scheme will have following components: 

(i) Basic enabling infrastructure: It will include site development including development of industrial plots, boundary wall, roads, drainage, water supply, electricity supply including power backup, effluent treatment plant, parking bay, weigh bridges, common office space etc. However, the cost of basic enabling infrastructure not exceeding 40 percent of the eligible project cost would be eligible for grant purpose. The cost of any basic enabling infrastructure outside the boundary wall of the agro cluster will not be eligible for grant assistance.

(ii) Core infrastructure: The common facilities will be based on the needs of the units which will be set up in these clusters. The common facilities of capital intensive nature may include food testing laboratory, cleaning, grading, sorting and packing facilities, steam generation boilers, dry warehouse, cold storage, pre-cooling chambers, ripening chambers, IQF, specialized packaging, other common processing facilities, etc.

Project Monitoring and Evaluation:-

• The Ministry will periodically review the progress of the projects under the Scheme. 

• Pre and post inspection would also be undertaken by the Ministry officials, PMA and State Govt. to find out the physical, financial and operational progress as and when required. 

• The decision of the IMAC shall be final and binding on all concerned parties on the interpretation of the provisions of these guidelines and the matters related or incidental thereto.

Any dispute arising out of selection of proposals and implementation of approved project under this scheme guideline will be subject to Courts / Tribunals having jurisdiction over Delhi.


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