Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) scheme

The main objective of the Scheme is the creation of processing and preservation capacities and modernization/ expansion of existing food processing units with a view to increasing the level of processing, and value addition leading to reduction of wastage. The processing activities undertaken by the individual units cover 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 the 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 Organisation (FPOs)/ NGOs/ Cooperatives/SHGs/ Pvt. Ltd companies/ individuals proprietorship firms engaged in establishment/ upgradation/ modernization of food processing units.

Eligible Sectors under this Scheme:

• The scheme offers assistance for the following sectors:

• Fruits & vegetable processing

• Milk Processing

• Meat/poultry/fish processing

• Ready to Eat/Ready to Cook Food Products Breakfast cereals Snacks bakery and other food products including nutritional health foods Grains pulses, oil seed milling and processing based on modern technology.

• Modern Rice milling.

• Other agri-horti products including spices, coconut, soybean, mushroom processing, honey processing, etc.

• Fruits/Honey-based wines.

• Natural Food flavors, food additives food extracts & colors, oleoresins, guar gum, cocoa products, etc.

• Manufacturing jaggery from sugarcane and value-added products from jaggery (as raw material).

• Any other sector that makes food products fit for human consumption.

• Animal feed manufacturing unit to be set up in Mega Food Parks and Agro Processing Clusters approved by the Ministry from time to time.

• Carbonated Drinks and beverages containing fruit juice.

Benefits:

• The scheme envisages financial assistance to food processing units in the form of grant-in-aid (maximum Rs. 5 crore) as under:

• 35% of the eligible project cost in General Areas

• 50% of the eligible project cost in the NE States, hilly areas, State Notified Integrated Tribal Development Project (ITDP) areas

• 50% of the eligible project cost for projects promoted by SC ST entrepreneurs.