Agro Processing Cluster Scheme

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Ministry of Food Processing Industries

The scheme aims at development of modern infrastructure and common facilities to encourage group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/ farmers to the processors and markets through well-equipped supply chain with modern infrastructure. The units are set up simultaneous along with creation of common infrastructure. Agro processing clusters set up by Project Execution Agency (PEA)/ Organisation such as Govt./ PSUs/ Joint Ventures/ NGOs/ Cooperatives/ SHGs/ FPOs/ Private Sector/ individuals etc. and are eligible for financial assistance subject to terms and conditions under the scheme guidelines.

Scheme Benefits & Highlights

  • The Scheme envisages grants-in-aid @ 35% of eligible project cost in general areas and @50% of eligible project cost in the North East States including Sikkim and difficult areas namely Himalayan States (i.e. Himachal Pradesh, Jammu & Kashmir and Uttarakhand), State notified ITDP areas & Islands subject to max. of Rs. 10.00 crore per project.
  • The grants-in-aid is credit linked but not back-ended.

Release of Grant

  • First installment of 35% of the total approved grant is released to the PEA after incurring an expenditure of 35% of the bank term loan and 35% promoters contribution/ equity;
  • Second installment of 40% of the total approved grant is released after incurring an expenditure of 75% of the bank term loan and 75% of promoters’ contribution / equity;
  • Third & final installment of 25% of the approved is on completion of the project and submission of requisite documents.

Eligibility

Agro processing cluster may be sanctioned in the same district where CPC of Mega Food Park (MFP) is located. The promoter(s), who have been sanctioned Mega Food Parks, will be eligible under the scheme only after completion of the MFP. 

The proposals, meeting the cutoff total marks of at least 60 as per the criteria for assessment in the Annexure-I, will be considered eligible subject to fulfillment of other conditions prescribed in the Scheme guidelines. 

For more details and Annexure-I: Please click here

Registration Process

Proposals for seeking assistance under the scheme are invited through Expression of Interest from time to time. To view notice inviting proposals (Click Here) and to submit proposals online (Click Here).

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