How to Apply for MOFPI Subsidy: Step-by-Step Process & Documents Required

Introduction

The Ministry of Food Processing Industries (MOFPI) provides financial assistance under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) to support food processing businesses. The MOFPI subsidy helps entrepreneurs, MSMEs, and FPOs in setting up or expanding their food processing units with up to ₹5 crore in funding.

In this blog, we will walk you through the MOFPI subsidy application process, explain the documents required, and provide a step-by-step guide on how to register on the SAMPADA portal for successful application submission.

1️⃣ Who Can Apply for MOFPI Subsidy?

MOFPI subsidy is available for the following categories:

✅ Individuals & MSMEs – Micro, Small, and Medium Enterprises in the food processing sector.

✅ Proprietorship & Partnership Firms, LLPs, Private & Public Limited Companies.

✅ Farmer Producer Organizations (FPOs) & Self-Help Groups (SHGs).

✅ Scheduled Caste (SC) & Scheduled Tribe (ST) Entrepreneurs.

✅ Startups in the food processing industry.

✅ Units located in Mega Food Parks (MFPs) & Agro-Processing Clusters (APCs).

✅ Export-oriented food businesses.

📌 Special Benefits: Projects in Northeast States, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Ladakh, and Tribal Areas are eligible for higher subsidies (50% of project cost).

2️⃣ MOFPI Subsidy Amount & Financial Assistance

• General Areas: 35% of eligible project cost (Max ₹5 crore).
• Difficult Areas & SC/ST, FPOs: 50% of eligible project cost (Max ₹5 crore).
• Minimum project cost requirement: ₹3 crore in General Areas and ₹1 crore in Difficult Areas.

📌 The subsidy is disbursed in two installments (50% each), based on project completion milestones.

3️⃣ Step-by-Step MOFPI Subsidy Application Process

📌 Step 1: Register on the SAMPADA Portal

🔗 Visit: https://www.sampada-mofpi.gov.in
📌 Create an account by filling in your company details, GST, PAN, Aadhaar, and contact information.

📌 Verify your email & mobile number for successful registration.

📌 Step 2: Prepare a Detailed Project Report (DPR)

Your DPR (Detailed Project Report) should include:

✅ Business model & project concept.

✅ Market feasibility, demand analysis, and competitor study.

✅ Financial projections, ROI, and break-even analysis.

✅ Raw material sourcing & supply chain details.

✅ Technology & process flow, including automation.

✅ Expected employment generation.

✅ Land and building ownership/lease details.

✅ Forward & backward linkages with suppliers and buyers.

📌 A well-prepared DPR increases the chances of subsidy approval.

📌 Step 3: Obtain a Term Loan Sanction Letter

You must secure a final term loan sanction letter from:

• A Scheduled Commercial Bank, NABARD, SIDBI, or NEDFi.
• The term loan amount should be at least 20% of total project cost (10% for Difficult Areas & SC/ST projects).

📌 Without a loan sanction, your application will be rejected.

📌 Step 4: Submit Your Online Application

📌 Log in to the SAMPADA Portal and fill out the online application form.

📌 Upload your DPR, term loan sanction letter, and supporting documents.

📌 Pay the non-refundable application fee (₹20,000 for general applicants, ₹15,000 for SC/ST applicants).

📌 Submit your application before 28th March 2025 the EOI deadline.

📌 Step 5: Application Review & Evaluation

Your application will go through two levels of evaluation:

✅ Technical Committee (TC): Checks eligibility, project feasibility, and financial viability.

✅ Project Approval Committee (PAC): Reviews and approves subsidy applications.

📌 Projects must score at least 60% (45% for SC/ST) to be eligible for approval.

📌 Step 6: Receive Sanction Letter & Submit Bank Guarantee

📌 If approved, you will receive a sanction letter from MOFPI.

📌 Submit a Bank Guarantee of 5% of the subsidy amount, valid for 30 months.

📌 Begin project implementation and apply for subsidy disbursement in phases.

📌 Subsidy is disbursed in two equal installments based on project completion milestones.

4️⃣ Required Documents for MOFPI Subsidy Application

📂 Company Registration Documents (LLP/Pvt Ltd/Proprietorship/FPO/SHG) ✅
📂 Detailed Project Report (DPR) ✅
📂 Final Term Loan Sanction Letter ✅
📂 Land Ownership/Lease Agreement (Min. 15-Year Lease) ✅
📂 Quotations for Machinery & Equipment ✅
📂 Financial Statements & Tax Returns (Last 2 Years) ✅
📂 FSSAI License & Pollution Control NOCs ✅
📂 Geo-Tagged Photographs of the Project Site ✅
📂 Bank Statements for PIA Contribution, Term Loan & Subsidy Account ✅
📂 Performance Bank Guarantee (5% of Subsidy Amount) ✅

📌 Ensure all documents are uploaded correctly on the SAMPADA Portal. Any missing document can lead to rejection.

5️⃣ Common Mistakes to Avoid in MOFPI Subsidy Application

🚫 Incomplete Documentation: Missing documents lead to rejection.

🚫 No Term Loan Approval: Bank sanction letter is mandatory.

🚫 Delayed Submission: Apply before 28th march 2025 the deadline.

🚫 Incorrect Project Cost Estimates: Wrong financial calculations can disqualify your application.

🚫 Failure to Separate GST in Cost Estimates: Subsidy is calculated on base project cost, excluding GST.

📌 Follow all compliance requirements to ensure successful subsidy approval.

6️⃣ Conclusion

The MOFPI Subsidy 2025 is an excellent opportunity for food processing entrepreneurs to expand their business with government support. By following the right application process and submitting the required documents on time, you can secure up to ₹5 crore in financial assistance.

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