Subsidy for Agri-Processing Units: PMKSY & State Policies Explained
Detailed analysis of PMKSY subsidies for agri-processing units. Get up to 50% subsidy on plant and machinery for food processing projects.
Value addition in agriculture is a priority sector for industrial growth. Setting up units for processing fruits, vegetables, or spices can unlock massive subsidies under the PMKSY (Pradhan Mantri Kisan SAMPADA Yojana).
1. PMKSY - Unit Scheme
This scheme provides capital subsidy for setting up new units or modernization of existing food processing units.
- General Areas: 35% of eligible project cost.
- Difficult Areas (NE, Hilly, ITDP): 50% of eligible project cost.
- Maximum Limit: Up to ₹5.00 Crores per project.
2. Eligible Components
- Plant and Machinery (Processing line, IQF, Blast Freezer).
- Technical Civil Works (Cold room, specialized flooring).
- Quality Testing Lab equipment.
3. Step-by-Step Application Process
- Selection of location and land procurement.
- Detailed Project Report (DPR) preparation by qualified consultants.
- Sanction of term loan from a scheduled bank.
- Online application on the MOFPI / State portal.
