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Mega food parks and FPUs across the country

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Ministry of Food Processing Industries (MoFPI) has been implementing central sector umbrella scheme called “Pradhan Mantri Kisan Sampada Yojana (PMKSY)” since 2017-18 across the country. The  basic objective of the scheme is to ensure overall development of food processing sector in the country.

The scheme aims to achieve the objective by providing incentives for creation of preservation & processing infrastructure. The PMKSY has several component schemes. Under the component-scheme Mega Food Park Scheme (MFPS), financial assistance is provided for setting up of Mega Food Parks in the country.

The scheme has been discontinued by the Government w.e.f. 01.04.2021 with provision for committed liabilities during 15th Finance Commission cycle. The other component schemes of PMKSY such as Agro Processing Cluster (APC), Integrated Cold Chain and Value Addition Infrastructure (ICC), Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC) and Operation Greens (OG) provide for financial assistance for setting up of Food Processing Infrastructure/Units in the country.

Further, Ministry of Food Processing Industries is extending credit linked subsidy @35% of eligible project cost subject to maximum of Rs. 10 lakhs for upgradation of existing or setting up of new micro-food processing enterprises, under Pradhan Mantri Formalization of Micro Food Processing Enterprises (PMFME) scheme.

State-wise details of financial assistance provided during each of the last three years by the Ministry for setting up of Mega Food Parks and Food Processing Units is at


Though MoFPI does not provide concessions or accords priority for the setting up of Food Processing Mega Food Parks and FPUs in the aspirational districts, but under the component schemes namely Cold Chain, APC, CEFPPC and OG, the following concessions are provided for proposals received from difficult areas such as Integrated Tribal Development Project (ITDP), North Eastern Region, Hilly States etc.: –

  • The combined net worth of the applicant equal to the grants-in-aid sought against 1.5 times in general areas.
  • Term loan from the Bank for an amount not less than 10% of the total project cost against 20% in general areas.
  • Infusion of equity of at least 10% of the total project cost against 20% in general areas.
  • Minimum eligible project cost of Rs.1.00 (one) crore against Rs. 3.00 crore in general areas.
  • Grants-in-aid @50% of eligible project cost against @ 35% of the eligible project cost in general areas, subject to a maximum amount of Rs. 5.00 crore in case of CEFPPC scheme, Rs. 10.00 crore in case of APC and Cold Chain schemes and Rs.15.00 crore in case of OG scheme.

This information was given by Union Minister of State for Food Processing Industries Shri Prahlad Singh Patel in a written reply in the Lok Sabha today.

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