What Are the Eligible Project Components Under MOFPI Subsidy?
Introduction
The Ministry of Food Processing Industries (MOFPI) offers subsidy assistance under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) to support food processing businesses. This subsidy covers various technical civil works, plant & machinery, and infrastructure necessary for setting up or expanding food processing units.
In this blog, we will discuss the MOFPI Subsidy eligible project cost, what components are covered under the food processing plant subsidy, and which technical civil works qualify for funding.
1️⃣ MOFPI Subsidy Overview
📌 Subsidy Amount & Financial Assistance:
- General Areas: 35% of the eligible project cost (Up to ₹5 crore).
- Difficult Areas & SC/ST, FPOs: 50% of the eligible project cost (Up to ₹5 crore).
- Minimum Project Cost Requirement:
- ₹3 crore in General Areas
- ₹1 crore in Difficult Areas (Northeast, Hilly & Tribal Regions)
📌 What Does MOFPI Subsidy Cover? MOFPI provides financial assistance for plant & machinery, infrastructure, and technical civil work for food processing projects. The subsidy is disbursed in two equal installments (50% each) based on project completion milestones.
2️⃣ Eligible Project Components Under MOFPI Subsidy
The MOFPI subsidy applies to the following project components:
✅ A. Technical Civil Work Subsidy
MOFPI covers costs for essential civil construction related to food processing operations, including:
🏗 Processing Units & Factory Buildings – Construction of food processing plants, manufacturing units, and hygienic production areas.
🏢 Cold Storage & Warehousing Infrastructure – Temperature-controlled storage facilities for raw materials & finished goods.
⚡ Power Supply & Distribution Systems – Electrical wiring, power panels, and transformers.
🚚 Controlled Temperature Transport Facilities – Refrigerated & insulated transport units.
♻ Effluent Treatment Plant (ETP) & Waste Management Systems – Water recycling, waste disposal, and sustainability measures.
🌞 Solar Power Systems for Sustainable Operations – Installation of solar energy panels.
📦 Packaging & Handling Facilities – Dedicated spaces for sorting, grading, and packaging.
🚛 Weighbridges & Forklifts – Weighing stations for bulk raw materials and product dispatch.
📌 Important: Non-technical civil works such as office buildings, security rooms, and compound roads are not eligible.
✅ B. Plant & Machinery Covered Under MOFPI Subsidy
The subsidy applies to the purchase and installation of modern machinery & equipment required for food processing:
🛠 Food Processing Equipment – Washing, cutting, peeling, crushing, pulping, drying, blanching, de-husking, de-hulling, de-seeding, milling, sorting, grading, extruding, frying, and pasteurization machinery.
🔬 Testing & Quality Control Equipment – Laboratory setups for product quality assurance.
📦 Packaging Machinery – Bottling, pouch filling, sealing, and labeling machines.
🔌 Automation & Digital Control Systems – IoT-based automation, SCADA & AI-integrated production lines.
❄ Cold Chain Equipment – IQF (Individual Quick Freezing) machines, blast freezers, plate freezers, and spiral freezers.
🔥 Boilers & Steam Generation Systems – Essential for food processing.
💨 Air Handling & Ventilation Systems – Industrial ventilation & HVAC systems.
🚛 Material Handling Equipment – Forklifts, pallets, conveyors, and transport trolleys.
📌 Note: Only brand-new plant & machinery is covered. Second-hand or refurbished equipment is not eligible.
✅ C. Utilities & Essential Infrastructure
Apart from plant and civil work, MOFPI covers essential utilities that support food processing operations:
⚡ Electrical Systems: Transformers, high-voltage power distribution, DG sets, control panels.
💧 Water Supply & Filtration Systems: Reverse Osmosis (RO) plants, industrial water purification.
♻ Solid & Liquid Waste Management: Bio-digesters, composting, and waste treatment systems.
🌞 Renewable Energy Systems: Solar panels & energy-efficient equipment for sustainable operations.
🚚 Refrigerated Transport: Insulated trucks for temperature-sensitive products.
📌 Ineligible Items: Office furniture, security equipment, CCTVs, administrative buildings, and non-food processing infrastructure are not covered under the subsidy.
3️⃣ How to Apply for MOFPI Subsidy?
📌 Step 1: Register on the SAMPADA Portal
🔗 Visit: https://www.sampada-mofpi.gov.in
📌 Create an account and enter business details.
📌 Upload required documents and register for the subsidy.
📌 Step 2: Submit Required Documents
📂 Detailed Project Report (DPR) – Feasibility study, process flow, & financials ✅
📂 Bank Term Loan Sanction Letter – Loan approval from a scheduled commercial bank ✅
📂 Quotations for Machinery & Equipment – From authorized dealers ✅
📂 Land Ownership/Lease Agreement – Minimum 15-year lease required ✅
📂 Pollution Control & FSSAI Licenses ✅
📂 Geo-tagged Photographs of Project Site ✅
📂 CA Certificate for Financial Compliance ✅
📌 Step 3: Technical & Financial Evaluation
📌 The application is reviewed by MOFPI’s Technical Committee (TC).
📌 If eligible, it is sent to the Project Approval Committee (PAC) for final approval.
📌 Successful applicants receive a sanction letter & must submit a performance bank guarantee (5% of subsidy amount).
📌 Step 4: Project Implementation & Subsidy Disbursement
📌 The subsidy is disbursed in two equal installments (50% each) after project completion verification.
4️⃣ Key Takeaways
✔ MOFPI Subsidy covers plant & machinery, technical civil work, and essential utilities.
✔ Subsidy amount: 35%-50% of eligible project cost (up to ₹5 crore).
✔ Cold storage, processing units, and packaging lines are eligible components.
✔ Second-hand or refurbished machinery is not covered.
✔ Land, office buildings, and security systems are not eligible for subsidy.
✔ The application must be submitted through the SAMPADA Portal.
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