Chief Minister’s Agriculture and Food Processing Scheme

Who Can Apply

  • Individual Entrepreneurs, Skilled Farmers, Unemployed Youth,
    Women, New Entrepreneurs, Aggregators, Partnerships, Partnerships (LLP), etc.
  • Farmer Producer Group/ Institute/ Company, Self Help Group (SHG), Producer Co-operative Societies, Government Organisations, Private Organisations.

Which Projects Are Eligible Under Chief Minister’s Agriculture and Food Processing Scheme

Crop group based processing industries like cereals, pulses, fruits, vegetables, oilseeds,
spices, etc. Among these, nutritious cereal processing projects will be given first priority.

  • Subsidy of 30% of construction cost of plant and machinery and technical civil work required for process projects, maximum Rs.50 lakh.
  • In order to balance the cost in the proposal, the ratio of cost will be considered 60:40
    respectively while giving subsidy for plant and machinery and construction ( Technical Civil
    Work). For this, 40% of the plant and foundation or the proposed amount, whichever is less,
    will be considered for construction taking the full amount for plant and machinery.
  • The subsidy under this scheme will be given in two equal annual installments as per the
    principle of “Credit Linked Back Ended Subsidy” a) after the construction of the project is
    completed and b) after the project comes into full production capacity.
  • Encouraging the establishment of new projects based on crop groups with the participation
    of farmers for value addition of agricultural products and also upgradation, expansion and modernization of existing projects according to modern technology.
  • Creating markets for manufactured goods and promoting exports.
  • To create trained manpower for agriculture and food processing.
  • To provide employment opportunities in rural areas by giving priority to agriculture and food
    processing industries based on crop groups.

Benefits

Subsidy of 30% of construction cost of plant and machinery and technical civil work required for process projects, maximum Rs.50 lakh.

The subsidy under this scheme will be given in two equal annual installments as per the principle of “Credit Linked Back Ended Subsidy” a) after the construction of the project is completed and b) after the project comes into full production capacity.

In order to balance the cost in the proposal, the ratio of cost will be considered 60:40 respectively while giving subsidy for plant and machinery and construction ( Technical Civil Work). For this, 40% of the plant and foundation or the proposed amount, whichever is less, will be considered for construction taking the full amount for plant and machinery.

Type of incentives

Encouraging the establishment of new projects based on crop groups with the participation of farmers for value addition of agricultural products and also upgradation, expansion and modernization of existing projects according to modern technology.

To create trained manpower for agriculture and food processing.

Creating markets for manufactured goods and promoting exports.

To provide employment opportunities in rural areas by giving priority to agriculture and food processing industries based on crop groups.

  • Farmer Producer Group/ Institute/ Company, Self Help Group (SHG), Producer Co-operative Societies, Government Organisations, Private Organisations.