Telangana set to gain from PLI scheme for food processing

The scheme will be rolled out across the country including Telangana and will be implemented through a project management agency (PMA).

Hyderabad: Telangana which has drawn out aggressive plans to establish special food processing zones to produce modern food products and provide employment to local youth by exporting locally manufactured food products worldwide can emerge as a key investment destination under the Production Linked Incentive Scheme approved for food processing industry by the Union Cabinet on Wednesday with an outlay of Rs 10,900 crore.

The scheme will be rolled out across the country including Telangana and will be implemented through a project management agency (PMA).

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The food processing industry in Telangana has doubled in the last few years and major companies such as ITC have evinced interest in setting up units in the State. Apart from this, many other players are looking at setting up large processing units.

Telangana Industries minister K T Rama Rao who laid the foundation stone for a food processing unit at Narmala of Gambhiraopet mandal recently stated that four more units are going to come up in the surrounding areas. In order to provide employment to local youths, 260 acres of the State government land was allocated to food processing units.

With the aim of making Telangana a leading State in food processing, the government has already identified 8,000 micro processing units under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) Scheme and has already identified 4,000 farmers and 13 crops.

With the PLI scheme, the Centre aims to support food manufacturing entities with stipulated minimum sales and minimum stipulated investment for expansion of processing capacity and branding abroad, increase employment opportunities of off-farm jobs and ensure remunerative prices of farm produce and higher income to farmers.

It will help create 2.5 lakh jobs by 2026-27, boost exports and facilitate expansion of food processing capacity to generate processed food output worth Rs 33,494 crore. The aim is to take the country’s food processing to a next level.

According to the Central government, the first component under the scheme relates to incentivising manufacturing of four major food product segments- ready-to-cook/ready-to-eat foods, processed fruits and vegetables, marine products and mozzarella cheese. Innovative and organic products of small-to-medium enterprises, including eggs, poultry meat, egg products also are included. The second component relates to support for branding and marketing abroad to incentivise emergence of strong Indian brands.

The Government of India will issue an expression of interest (EoI) by the end of this month. The selected applicant will be required to undertake investment in plant and machinery in the first two years i.e. in 2021-22 and 2022-23.

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