Context:

The Ministry of Food Processing Industries (MoFPI) has launched an online portal for ‘Production Linked Incentive Scheme for Food Processing Industry(PLISFPI).

Production linked Incentive Scheme (PLI)

• Production Linked Incentive is a scheme that aims to give companies incentives on incremental sales from products manufactured in domestic units.
• It was launched in 2020.
• It is in line with India’s Atmanirbhar Bharat campaign.
• The scheme encourages foreign companies to set up units in India.
• It also aims to encourage local companies to set up or expand existing manufacturing units, generate more employment, and cut down the country’s reliance on imports from other countries.
• The PLI schemes are formulated on the following key pillars;
  • Creation of large-scale manufacturing capacities
  • Import substitution and increase in exports
  • Employment generation.

About Production Linked Incentive Scheme for Food Processing Industry

• The government of India has approved a new Central Sector Scheme namely ‘Production Linked Incentive Scheme for Food Processing Industry’ for implementation during 2021-22 to 2026-27 with an outlay of Rs. 10,900 crore.
• Objective: To support the creation of global food manufacturing champions commensurate with India’s natural resource endowment and support Indian brands of food products in the international markets.
• Ministry of Food Processing Industries is inviting applications for availing sales-based incentives and grants for undertaking Branding & Marketing activities abroad under the scheme from three categories of Applicants:
  • Category-I: Applicants under this category could undertake Branding & Marketing activities abroad also and apply for a grant under the scheme with a common application.
  • Category-II: SMEs Applicants manufacturing innovative/ organic products who apply for PLI Incentive based on Sales.
  • Category-III: Applicants applying solely for grants for undertaking Branding & Marketing activities abroad