Central Government Scheme, PMKSY (Sampada Yojna)

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

Government of India has approved a Central Sector Scheme – SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters). SAMPADA has been renamed as Pradhan Mantri Kisan Sampada Yojna (PMKSY).

One of the schemes covered under PMKSY is “Creation/ Expansion of Food Processing & Preservation Capacities (CEFPPC)”. This article is all about this scheme based on the last guidelines issued by MoFPI dated 02.03.2020.

1. Objective:

The main objective of the Scheme is creation of processing and preservation capacities and modernization /expansion of existing food processing units which will help in increasing the level of processing, value addition and thereby lead to reduction of wastage and enhancement of farmers’ income.

2. Eligibility:

i. Eligible Sectors:


  • Manufacturing of aerated water and packaged drinking water will not be covered under this scheme. However, carbonated drinks/ beverages containing fruit juice/ pulp more than 5% in case lime/ lemon and more than 10% in case of other fruits will be covered. A maximum of 2 units in MFP and 1 unit in APC will be sanctioned under this category.
  • Farming activities such as dairy farming, poultry farming, mushroom farming, hatcheries etc. are not eligible under this scheme.

ii. Indicative list of eligible processing activities:

(only illustrative and not exhaustive)

iii. Eligible Organizations:

iv. Eligible Location:

The proposals for CEFPPC units will be considered in Mega Food Parks, Agro Processing Clusters assisted by the ministry.

In State/ UTs having no MFP, APC, units may be considered anywhere.

SC/ST entrepreneurs having 100% stake in the applicant firm, unit may be considered anywhere.

v. Basic Eligibility Criteria:

3. Pattern of Assistance:

4. Calculation of Eligible project cost:

Eligible project cost includes the cost of plant & Machinery and Technical civil work including applicable taxes except for ineligible items mentioned below. Cost of ‘Utilities’ essential for the plant i.e. Water pipeline, DG set, Transformer, Boiler, Solid waste treatment plant, ETP, etc. will be considered under eligible project cost subject to restriction of above cost being maximum 25% of the total project cost. The cost norms notified by MIDH/ NHB/ MoFPI, wherever available, shall be applied while calculating the eligible project cost and grants-in-aid for the proposals received under the scheme.

The following list would not be considered for calculation of eligible project cost- Ineligible items:

(illustrative list, not exhaustive)

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