How to apply for the PLI Scheme for the Food Processing Industry?

The scheme aims to incentivize domestic manufacturing and promote investment in the food processing industry. The scheme has an outlay of INR 10,900 crore and will run for a period of six years. The scheme is a significant step towards promoting domestic manufacturing and reducing import bills. The scheme incentivizes companies to invest in the food processing industry and create employment opportunities. By leveraging the incentives provided under the scheme, companies can grow their businesses and contribute to the growth of the food processing industry in India. To learn more about the features and eligibility – CLICK HERE.
 

Why Apply for the PLI Scheme?

Recipients of incentives under the PLI scheme for the food processing industry in India can benefit in several ways:

• The incentives provided under the scheme can help companies reduce their costs and improve their profitability. The scheme incentivizes incremental sales, which means that companies that achieve higher sales volumes can earn higher incentives. This can help companies offset the costs associated with increasing production and invest in new technologies to improve their operations.
• The scheme can help companies expand their business and enter new markets. By incentivizing the production of innovative products, the scheme can encourage companies to develop new products that meet the evolving needs of consumers. Additionally, by supporting branding and marketing abroad, the scheme can help companies establish a presence in international markets and create strong Indian brands.
• By incentivizing domestic manufacturing and reducing import bills, the scheme can encourage investment in the industry and help create a more robust ecosystem for food processing. This, in turn, can benefit the entire value chain, from farmers to consumers, and contribute to the country's food security.

 

What are Some Key Obligations as a Recipient of the PLI Scheme?

Under the PLI Scheme, the manufacturers are expected to fulfil certain obligations in order to remain eligible for complete benefits of the scheme and avoid penalties which may also impact the company’s reputation.

• Recipients must meet the eligibility criteria set out by the Government in order to receive the incentives. This includes investing in new plant and machinery, meeting production targets, and complying with environmental and labour regulations.
• Recipients must maintain accurate records of their production, sales, and investment in plant and machinery. These records must be audited by a third-party auditor and submitted to the Government for verification.
• Recipients must achieve incremental sales targets in order to receive the incentives. The sales targets are set by the Government based on the segment in which the company operates and the level of incentives available.
• Recipients must comply with all labour regulations related to their operations. This includes providing safe working conditions, paying fair wages, and ensuring that workers are not subject to any form of discrimination.
• Recipients must comply with all environmental regulations related to their operations. This includes obtaining necessary permits, monitoring emissions and waste disposal, and implementing measures to reduce their environmental impact.

 

How to Pitch for the PLI Scheme?

A manufacturer may need to provide a convincing pitch to the authorities in order to enjoy the benefits of the PLI scheme for the Food Processing Industry in India. Here are some essential steps to pitch for the PLI scheme:

• Research the PLI scheme for Food Processing Industry: Before you pitch for the PLI scheme, make sure to understand the objectives, requirements and eligibility of the scheme.
• Highlight your company's capabilities: It is important to highlight your company's experience, expertise, and capabilities in the field of Food Processing. It is important to share the company's track record, production capacity, and quality standards to demonstrate your ability to meet the production targets under the PLI scheme
• Present your investment and production plans: The PLI scheme for the Food Processing Industry is designed to encourage investments in its manufacturing in India. Therefore, clearly presenting investment plans, including the amount of investment, the sources of funding, and the timeline for investment is necessary. Also, a clear outline of the production plans and plan to achieve the targets can be beneficial.
• Emphasise the benefits of the PLI scheme: Highlighting the benefits of the PLI scheme for the Food Processing Industry and how it will help you scale up your manufacturing operations is important.

  

Process of Application and Disbursement of Incentives

The Production-Linked Incentive (PLI) scheme is an initiative by the Indian Government to promote its manufacturing in India. To apply for the PLI scheme for the Food Processing Industry, an eligible manufacturer may follow the following steps:

1. Register on the PLI portal: You can visit the PLI portal (https://pli-eda.gov.in/) and create an account by providing your basic details.

2. Fill in the application form: The application form may require you to provide details such as your company name, address, production targets, investment plans, etc.
3. Upload the required documents: You may also need to upload certain documents such as company registration certificate, PAN card, GST registration, etc.
4. Submit the application: After filling in the application form and uploading the required documents, you can submit your application for the PLI scheme for food processing.
5. Wait for approval: Once you have submitted your application, it will be reviewed by the PMA. If your application is approved, the incentives shall disburse after completion of all pre-disbursal formalities.

 
The Production Linked Incentive (PLI) scheme for the food processing industry in India is a significant initiative that aims to boost domestic manufacturing, reduce import bills, and create employment opportunities. The scheme incentivizes the production of four major food product segments and encourages the development of innovative and organic products by small and medium-sized enterprises. The scheme also supports branding and marketing abroad to incentivize the emergence of strong Indian brands. The incentives provided under the scheme can help companies reduce costs, expand their business, and contribute to the growth of the food processing industry in India. Overall, the PLI scheme for the food processing industry has the potential to create a more robust ecosystem for food processing, improve the livelihoods of farmers and workers, and contribute to the country's food security.