Production Linked Incentives Scheme For Food Processing Industry For Millets Based Production (PLISMBP)

The Production Linked Incentives Scheme for Food Processing Industry for Millets based production (PLISMBP) was launched in 2022 by the Ministry of Food Processing Industries (MOFPI) as a sub-component of the PLI Scheme for Food Processing Industry. The scheme aims to encourage the use of millets in Ready to Cook/Ready to Eat (RTC/RTE) products and promote their value addition and sales in the domestic and export markets. 

Scheme Overview

• Scheme Name: Production Linked Incentives Scheme for Food Processing Industry for Millets based production (PLISMBP)
• Scheme Modified/Implemented: 2022
• Scheme Fund Allocated: Rs. 800 crores (Rs. 500 crore for incentives to Large Entity, Rs 300 crore for incentives to MSME)
• Type of Government Scheme: Central Government Scheme

Features of PLISMBP Scheme

1. Costing:

• Outlay: Rs 800 crores
• Tenure: 2022-23 to 2026-27

2. Eligibility:

• Applicant: Proprietary Firm, Partnership Firm / Limited Liability Partnership / Company registered in India, Co-operatives, MSME
• Classification: MSME and Large Entity
• Minimum Sales for Eligibility for Large Entity: Rs 250 Crores
• Minimum Sales for Eligibility for MSME: Rs 2 Crores
• Udyam Registration Certificate is compulsory for MSMEs
• Minimum CAGR of 10% on sales of eligible products required for grant of incentive

3. Incentives:

• Large Entity: Up to Rs 100 crore of allocated outlay
• MSME: Up to Rs 40 crore of allocated outlay

4. Implemented through Project Management Agencies and monitored by Empowered Group of Secretaries:

In the Production Linked Incentives Scheme for Food Processing Industry for Millets-based production (PLISMBP), the base year plays a crucial role in calculating sales, incremental sales and the corresponding incentives. Let’s take a closer look at the base year allocation:

• For the first three years of the scheme (2022-23 to 2024-25), the base year for calculation purposes is set as 2020-21. This means that the sales, incremental sales and incentives payable during this period will be evaluated and compared against the sales achieved in the base year.
• As we move forward, the base year shifts for the fourth and fifth years. For the fourth year (2025-26), the base year considered will be 2022-23, and for the fifth year (2026-27), the base year will be 2023-24. This adjustment ensures that the scheme’s evaluation remains accurate and up to date as time progresses.

Latest News about the scheme

The scheme has gained attention in the news recently due to its focus on promoting millet-based products. Given 2023 being celebrated as the International Year of Millets (IYM), the scheme was introduced to encourage the use of millets in food products and increase their value addition. A global event and exhibition-cum-buyer-seller meet were organized in collaboration with APEDA to promote millets and attract domestic and international exporters.

Benefits

• Encourages the use of millets in Ready to Cook/Ready to Eat products
• Incentivizes value addition and sales of millet-based products in domestic and export markets
• Promotes the consumption of millet and their nutritional benefits
• Supports the growth of the food processing industry and generates employment opportunities

Drawback of the Scheme

The scheme may not be useful for farmers who primarily deal with primary processed millet commodities such as de-husked/polished millet grains, millet flours/atta, and colour-sorted millet grains as these products are excluded from the eligible food products list.

How to Apply?

To apply for the PLISMBP scheme, follow these steps

1. Visit the official website.
2. Fill the application
3. Attach the necessary documents.
4. Apply online.
5. Keep track of the status of your application through the provided application number.

Documents Required

• Applicant’s registration certificate (proprietary firm, partnership firm / LLP / company)
• Udyam Registration Certificate (for MSME applicants)
• Sales data for the base year and subsequent years
• Other relevant documents as specified

Conclusion

The Production Linked Incentives Scheme for Food Processing Industry for Millets-based production (PLISMBP) is a government initiative aimed at promoting millet-based products and increasing their value addition in the food processing industry. The scheme offers incentives to both MSMEs and large entities to encourage the use of millets in Ready to Cook/Ready to Eat (RTC/RTE) food products. By promoting the consumption of millet, the scheme contributes to the growth of the food processing sector and provides employment opportunities.