EOI invited from Potential Promoters & Investors for setting up of 60 Agro Processing Clusters

Organisation:  Ministry of Food Processing Industries

Apply By:  15 Sep . 2017

EOI invited from Potential Promoters & Investors for setting up of 60 Agro Processing Clusters


The Ministry has formulated the Scheme for Creation of Infrastructure for Agro Processing Clusters as a sub-scheme of Central Sector Scheme - “Kisan SAMPADA Yojana” coterminous with the 14th Finance Commission cycle.

The scheme aims at development of modern infrastructure to encourage entrepreneurs to set up food processing units based on cluster approach. The scheme is to be implemented in area of horticulture / agriculture production identified through a mapping exercise. These clusters will help in reducing the wastage of the surplus produce and add value to the horticultural / agricultural produce which will result in increase of income of the farmers and create employment at the local level.

Objectives of the Scheme

Subject: - Operational Guidelines for the Scheme for Creation of Infrastructure for Agro-processing Clusters

The major objectives of the scheme are:

  • To create modern infrastructure for food processing closer to production areas.
  • To provide integrated and complete preservation infrastructure facilities from the farm gate to the consumer.
  • To create effective backward and forward linkages by linking groups of producers / farmers to the processors and markets through well-equipped supply chain.

 Project Execution Agency (PEA):

Project Execution Agency (PEA) / organizations such as Govt. / PSUs / Joint Ventures / NGOs / Cooperatives / Self Help Groups (SHGs) / Farmer Producer Organizations (FPOs) / Farmer Producer Companies (FPCs) / Private Sector / partnership firm / individuals etc. will be eligible for financial assistance under the scheme

 Eligibility criteria for PEA:

The combined net worth of the promoter(s) should not be less than 1.5 times of the grant amount sought.

Promoter(s) needs to bring in at least 20% of the total project cost as equity / contribution in general areas and at least 10% of the total 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.

Promoter(s) needs to bring in term loan from the Bank/Financial Institution for an amount not less than 20% of the project cost.

The land for the project shall be arranged by the PEA either by purchase or on lease of at least 50 years.

 Only one agro-processing cluster will be sanctioned in a district. In case of more than one proposal from same District, the proposal having higher score in the merit based on criteria for assessment as per Annexure-I will be considered. However, in case there are more than one proposal with same marks, the proposal with higher equity  / contribution (in Rupees term) will be considered.

Any entity / applicant which has availed grant from MoFPI for any project under another scheme of the Ministry, shall, in future, not be considered eligible for another grant until one year after operationalization of earlier project.

The same applicant / entity shall not be entitled for more than two grants in five years under the schemes of MoFPI.

Agro processing cluster will not be sanctioned in the same district where CPC of Mega Food Park (MFP) is located. The promoters, who have been sanctioned Mega Food Parks, will not be eligible under the scheme for a period of two years from the date of completion of the MFP.

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