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Scheme for Creation of Infrastructure for Agro-Processing Cluster: PMKSY

  • 26 Nov 2020
  • 4 min read

Why in News

Recently, the Union Minister of Food Processing Industries has attended the Independent Management Advisory Committee (IMAC) meeting to consider the proposals received under the Scheme for Creation of Infrastructure for Agro-Processing Cluster (APC) of Pradhan Mantri Kisan Sampada Yojana (PMKSY).

Key Points

  • IMAC approved 7 proposals with a total project cost of Rs. 234.68 crore including grants-in-aid of Rs. 60.87 crore in Meghalaya, Gujarat, Madhya Pradesh, Karnataka and Maharashtra.
  • These projects will leverage private investment of Rs. 173.81 crore and are expected to generate employment for 7750 persons.
  • Scheme for Creation of Infrastructure for Agro-Processing Cluster:
    • It was approved in May 2017 under the PMKSY, to incentivise the setting up of APCs in the country.
    • Aims: To develop modern infrastructure and common facilities to encourage a group of entrepreneurs to set up food processing units based on cluster approach by linking groups of producers/farmers to the processors and markets.
      • These clusters will help in reducing the wastage of the surplus produce and add value to the horticultural/agricultural produce which will result in an increase of income of the farmers and create employment at the local level.
    • Under the scheme, each APC has two basic components:
      • Basic Enabling Infrastructure like roads, water supply, power supply, drainage, etc.
      • Core Infrastructure/Common Facilities like warehouses, cold storages, tetra pack, sorting, grading, etc.
    • Requirements for Setup:
      • At least 5 food processing units with a minimum investment of Rs. 25 crore and at least 10 acres of land is required for at least 50 years.

Pradhan Mantri Kisan Sampada Yojana

  • In 2016, the Ministry of Food Processing Industries (MoFPI) introduced an umbrella Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA), which was proposed to be implemented with an allocation of Rs. 6,000 crores for the period of 2016-20.
  • In 2017, it was renamed as the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
  • It is a Central Sector Scheme.
  • Objectives:
    • To supplement agriculture.
    • To create processing and preservation capacities.
    • To modernise and expand existing food processing units with a view to increasing the level of processing.
    • To add value leading to the reduction of wastage.
  • Seven component schemes under PMKSY:
    • Mega Food Parks.
    • Integrated Cold Chain and Value Addition Infrastructure.
    • Infrastructure for APC.
    • Creation of Backward and Forward Linkages.
    • Creation/Expansion of Food Processing and Preservation Capacities.
    • Food Safety and Quality Assurance Infrastructure.
    • Human Resources and Institutions.
  • Under PMKSY, capital subsidy in the form of grants-in-aid ranging from 35% to 75% of the eligible project cost subject to a maximum specified limit is provided to investors under the various schemes for undertaking infrastructure, logistic projects and setting up of food processing units in the country.

Source: PIB

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