Boost Food Processing & Value Addition
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) is a Central Sector Scheme introduced by the Ministry of Food Processing Industries (MoFPI) to strengthen food manufacturing, encourage value addition, and promote eligible Indian food brands abroad.
- Nodal Ministry: Ministry of Food Processing Industries (MoFPI).
- Approved Outlay: ₹10,900 crore.
- Scheme Period: FY 2021–22 to FY 2026–27.
- Mechanism: Incentives linked to eligible incremental sales.
What is PLISFPI?
The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) uses specific eligibility criteria, approved commitments and performance conditions. Under the manufacturing component, incentives are linked to eligible incremental sales of specified food products.
The scheme was designed to:
- Support the development of globally competitive Indian food manufacturers.
- Encourage expansion of eligible food processing capacity.
- Promote value addition to agricultural and marine produce.
- Improve the international visibility of Indian food brands.
- Generate additional employment opportunities.
Main Components
The original scheme guidelines describe three broad components:
- Category I: Manufacturing of specified food products. Intended for large food manufacturers meeting prescribed eligibility and investment conditions.
- Category II: Innovative and organic food products. Designed for eligible small and medium enterprises manufacturing specified innovative or organic food products.
- Category III: Branding and marketing abroad. Supports qualifying activities that promote eligible Indian food brands in overseas markets (in-store branding, shelf-space rental, etc.).
Products & Eligibility Criteria
Verify the exact product description, HSN classification, and applicant category before applying.
Eligibility for Category I Applicants
The original guidelines prescribe the following minimum historical sales and investment thresholds for Category I:
| Product Segment | Min. Total Food Product Sales (FY 2019–20) | Min. Investment |
|---|---|---|
| RTE/RTC Foods | ₹500 crore | ₹100 crore |
| Processed Fruits and Vegetables | ₹250 crore | ₹50 crore |
| Marine Products | ₹600 crore | ₹75 crore |
| Mozzarella Cheese | ₹150 crore | ₹23 crore (for 10 MTPD plant) |
Note: Applicants seeking support for more than one segment require separate applications.
Eligible Investment & Exclusions
For Category I, qualifying investment includes specified plant and machinery, technical civil works, and associated infrastructure (capped at 20% of qualifying new P&M investment).
Generally Excluded:
- Land acquisition.
- Used, second-hand, or refurbished plant and machinery.
- Office buildings and guest houses.
- Recreational facilities.
- Raw materials and consumables used in manufacturing.
Category II: SMEs
For innovative and organic products, the original guidelines specify Udyog Aadhaar/Udyami registration.
A minimum sales threshold of ₹1 crore during FY 2019–20 is required for each innovative or organic product proposed for incentive, together with applicable category-specific conditions.
For organic products, APEDA registration applies where prescribed by the scheme guidelines.
Incentive Rates & Calculation
Sales-Based Incentive Rates
| Financial Year | RTE/RTC Foods | Processed Fruits & Veg | Marine Products | Mozzarella Cheese |
|---|---|---|---|---|
| FY 2021–22 | 10% | 10% | 6% | 10% |
| FY 2022–23 | 10% | 10% | 6% | 10% |
| FY 2023–24 | 10% | 10% | 6% | 10% |
| FY 2024–25 | 10% | 10% | 6% | 8% |
| FY 2025–26 | 9% | 9% | 5% | 6% |
| FY 2026–27 | 8% | 8% | 4% | 4% |
Note: A 10% incentive rate applies for certain defined value-added marine products for all six years, subject to matching the relevant eligible definition.
Calculation & Base Year
Formula: Incentive = Incremental sales in the approved product segment × Applicable incentive rate.
Base years change during the scheme:
- Year 1 to 4 (FY 21-22 to FY 24-25): Base Year = FY 2019-20
- Year 5 (FY 25-26): Base Year = FY 2021-22
- Year 6 (FY 26-27): Base Year = FY 2022-23
Minimum CAGR Requirements
- RTE/RTC foods: 10%
- Processed fruits and vegetables: 10%
- Marine products: 5%
- Mozzarella cheese: 15%
A generic CAGR calculator should not be used without confirming the correct base year and official methodology.
Branding & Marketing Support
The original scheme included a separate component to promote eligible Indian food brands in overseas markets.
- Support Rate: 50% of eligible expenditure.
- Annual Maximum: Lower of 3% of eligible food product sales or ₹50 crore per year.
- Minimum Eligible Expenditure: ₹5 crore over five years.
Eligible activities include in-store branding, shelf-space rental, product listing fees, and advertising. Trade discounts and overseas logistics are excluded.
Application & Approval Process
- Identify the relevant applicant category and eligible product segment.
- Review historical sales, investment and product records.
- Prepare the prescribed application and supporting documents.
- Submit the application through the official process during the applicable application window.
- Respond to scrutiny, clarification or deficiency requests.
- Undergo assessment and selection under the prescribed criteria.
- Meet approved commitments and other compliance requirements.
Documents for Preliminary Review
- Entity incorporation and registration documents.
- PAN and applicable business registrations.
- Audited financial statements for relevant FYs.
- Product-wise sales information (Domestic & Export).
- Plant and machinery invoices and fixed-asset registers.
- Product description and HSN classification.
- Organic certification and APEDA registration (if applicable).
- Branding proposals and activity-wise budgets (for Cat III).
Compliance & Risks
Approved applicants must comply with the scheme's applicable conditions and commitments.
- Complete approved investment commitments within the prescribed period.
- Meet applicable sales growth and product eligibility conditions.
- Submit claims within the prescribed deadlines.
- Cooperate with permitted verification or audit procedures.
- A performance bank guarantee equivalent to 3% of committed investment is prescribed.
False information or failure to meet commitments may lead to recovery or cancellation of approval.
PLISFPI Scheme Explained
Watch this detailed video to understand the scheme's eligibility, incentive structure, and application process.
Avail Subsidy Summary Report On Your Project
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Got any questions?
PLISFPI stands for the Production Linked Incentive Scheme for Food Processing Industry, a Central Sector Scheme administered by the Ministry of Food Processing Industries.
The approved financial outlay is ₹10,900 crore.
The original tenure ends in FY 2026–27, and beneficiary selection was reported as a one-time exercise. Businesses must verify the latest official status rather than assuming that fresh applications are available.
No. Land acquisition was excluded from qualifying investment under the original guidelines.
A consultant can help interpret the guidelines, organise records, assess potential eligibility and support relevant documentation processes. Government approval and disbursement cannot be guaranteed by a consultant.