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Priority Sector Lending in FPIs.
Mar 16, 2022
As per RBI’s Master Directions dated 04.09.2020, all food & agro- processing activities have been included as eligible under Priority Sector Lending (PSL). The list of eligible activities under PSL is attached as ANNEX.
A special fund of Rs.2000 crore has been set up in National Bank for Agriculture and Rural Development (NABARD) to provide credit at affordable rates to boost food processing sector. Under this fund, loan is extended to individual entrepreneurs, cooperatives, farmers producer organizations, corporates, joint ventures, Special Purpose Vehicle and entities promoted by the Government for setting up, modernization, expansion of food processing units and development of infrastructure in designated food parks. Apart from Mega Food Parks of the Ministry of Food Processing Industries, other designated Food Parks (DFPs) notified by the Ministry in different States have also been included. Till 31.1.2022, term loan of Rs. 466.26 crore has been disbursed from the Fund.
The Production Linked Incentive Scheme of Food Processing Industry (PLISFPI) has been formulated by the Ministry as part of 'AatmaNirbhar Bharat Abhiyaan' for enhancing India's manufacturing capabilities and enhancing exports. The scheme has three broad components. The first component relates to incentivizing manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) including millet-based foods, Processed Fruits & Vegetables, Marine Products and Mozzarella Cheese. The second component is intended for incentivizing innovative/ organic products of SMEs across all the above four food product segments including Free Range - Eggs, Poultry Meat and Egg Products. The third component relates to support for branding and marketing abroad to incentivize the emergence of strong Indian brands.
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