CEFPPC SCHEME (Creation of processing and preservation capacities)
The main objective of the Scheme is creation of processing and preservation capacities and modernisation/ expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage. The processing activities undertaken by the individual units covers a wide range of post-harvest processes resulting in value addition and/or enhancing shelf life with specialized facilities required for preservation of perishables. While expansion of processing capacity is necessary to increase the level of processing and reduce wastage, the induction of modern technology is intended to make a clear difference in terms of process efficiencies as well as improving the quality of the end product. The setting up of new units and modernization/ expansion of existing units are covered under the scheme.
Scheme is implemented through organizations such as Central & State PSUs/ Joint Ventures/ Farmer Producers Organization (FPOs)/ NGOs/ Cooperatives/ SHG’s/ Pvt. Ltd companies/ individuals proprietorship firms engaged in establishment/ upgradation/ modernization of food processing units.
Proposals for seeking assistance under the scheme are invited through Expression of Interest from time to time.
Pattern of Assistance
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. 5.00 crore per project.
Release of Grant
Grant is released in two instalments each @50% of grant in the following manner:
- The first installment of grant is released after the firm has utilized 50% of the term loan as well as 50% of promoter’s contribution and on production of the required documents.
- The second instalment is released on the commencement of commercial and submission of documents regarding utilization of 1st instalment of grant and 100% of Term Loan as well as 100% of Promoter’s contribution.
Shri Pankaj Kumar,
Ministry of Food Processing Industries,
Panchsheel Bhawan, August Kranti Marg,