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Agro-Processing Clusters Scheme: A boon for the Food Sector!!

Agro-Processing Clusters Scheme: A boon for the Food Sector!!

Agro-Processing Clusters Scheme: A boon for the Food Sector!!

The Food Sector in India has always been one of the most critical sectors for the country. Feeding 1.3 billion people daily is not an easy job for any government. To make this uphill task possible, a scheme has been introduced named “Agro-Processing Clusters Scheme“. Let’s have a look at what the scheme is and how it will help the government.

Introduction of the Agro-Processing Clusters Scheme :

The scheme aims at the creation of a robust ecosystem to promote food processing and will encourage entrepreneurs to set up food processing units. The Agro-Processing clusters will create an enabling environment for setting up cold chain facilities to store, transport and sell agricultural produce.

Through the Agro Processing cluster development programme, the Department of Food Processing cluster proposes to provide state-of-the-art infrastructure facilities to prospective entrepreneurs in a systematic and planned manner in the country. This will take food processing to a profitable level and create wealth and jobs for the nation. The scheme’s planning was done by some of the best agro Processing cluster scheme consultants in Hyderabad, who gave some of the best ideas.

Basic Points of the Scheme :

The Project Execution Agency (PEA) supports the private sector by providing lasting and practical solutions to problems and will provide Agro Processing Cluster Project Report. In it, the following points will be noted:

  1. The Agro-Processing Clusters Scheme is sponsored by MoFPI (Ministry of Food Processing Industries).
  2. The date from which the scheme will be effective is December 4, 2020.
  3. For the SC category, the last date to apply will be 28.02.2021 by 5 pm.

Components of the Scheme :

There are two primary components of the Agro Processing Cluster. These are :

  • Basic enabling infrastructure:

It includes the development of the sites, new building plots, supply of all the things like electricity, water, drainage etc. It will also have the space for the office and other necessary things.

  • Core infrastructure :

It includes the space for laboratories to test the food, parking spaces, boilers and driers—other mandatory facilities like packing and serving foods to trucks for distribution and storing.

Main Objectives of the Scheme :

The scheme layout has been presented by some of the best agro Processing cluster scheme consultants in Hyderabad. They gave their best in implementing it.

  1. To maintain and build a relationship between Entrepreneurs and Modern Technology to set up the Food Processing Clusters near the storage areas.
  2. To provide a full range of services by Processing the food from the farm to the consumer’s table.
  3. To link farmers and processors both directly and indirectly to markets and vice versa by forming a chain.

The agro Processing cluster project report will include everything about the scheme. However, some of the main points about the scheme need to be highlighted in a better way.

Pattern Of Assistance :

The relief in the agro Processing cluster scheme will be granted to the areas that are mentioned below.

  1. A total of 35% of the total cost of the project in general areas of India. A wholesome amount of the country will be covered in agro Processing clusters.
  2. For the Northeast states and Himachal Pradesh, Jammu & Kashmir and Uttarakhand, 50% of the project cost will be under the scheme.
  3. A maximum of 10 Crores Rupees will be funded to State notified ITDP areas, Islands and SC/ST, entrepreneurs.

Installment Guidelines :

The Agro-Processing Cluster project report also includes the installment guidelines for all the entrepreneurs. These are :

  1. ​The initial reimbursement of 35% of the total approved grant will be released as and when 35% of the amount has been spent. It can be done after 7 months of approval of the project.
  2. With 75% of term loan utilization and 75% contribution from promoters, 40% of the total approval will be released. It can be done after 5 months of the first installment.
  3. 15% of your approved grant is unlocked after 90% of the completion of the project. It can be done after 5 months of the second installment.
  4. The final installment of the project will be done after it is completed.  It can be done after 7 months of the third installment.

Eligibility Criteria :

Several organisations or groups are available for the agro Processing cluster scheme. These are :

  1. Well build organisation.
  2. NGOs for different purposes.
  3. Well maintained Self Help Groups.
  4. Well settled private companies.
  5. Organisations made by farmers.

Some of the best agro Processing cluster scheme consultants in Hyderabad have introduced these schemes for people who require it to maximise the profits for themselves and the country.

Conditions after Aid is approved :

For the agro Processing cluster scheme, some conditions need to be followed after the financial aid is given. These are :

  1. In the general areas, 20 months are given to organisations to start the production.
  2. For the SC/ST and North-East states, 24 months are given to start the production.

3.4. The extent of land required for establishing the agro-processing cluster would depend upon the business plan of Project Execution Agency (PEA), which may vary from project to project. At least 10 acres of land for the project shall be arranged by the PEA either by purchase or on lease of at least 50 years

3.1. At least 5 food processing units with a minimum aggregate investment of Rs. 25 crore will be set up in the Agro-processing cluster. These units may be set up by the promoters and associates of Project Execution Agency (PEA) and by other entrepreneurs. The investment in these units will not be eligible under this scheme.

Authors Bio:-

Sudheer Varma Vegesna 

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