**Executive Summary**
This document presents the answer to an unstarred question in Lok Sabha regarding the implementation of the Scheme for Creation of Infrastructure for Agro Processing Development of Modern Infrastructure in Tamil Nadu, under the Pradhan Mantri Kisan Sampada Yojana (PMKSY). The Ministry of Food Processing Industries (MoFPI) has been implementing the scheme since 2017 to encourage entrepreneurs to establish food processing units based on a cluster approach. The report details project approvals, reasons for delays, and measures taken to ensure equitable access and faster implementation. The answer was provided on February 12th, 2026.
**Key Points / Main Content**
* **Scheme Implementation:**
* The Ministry of Food Processing Industries (MoFPI) has been implementing the Scheme for Creation of Infrastructure for Agro Processing Clusters (APC) under the Pradhan Mantri Kisan Sampada Yojana (PMKSY) since 2017.
* The scheme aims to develop modern infrastructure to encourage entrepreneurs to set up food processing units based on a cluster approach.
* The scheme is demand-driven, and the Ministry provides financial assistance in the form of grants-in-aid/subsidy.
* Eligible entities include Central & State PSUs, Joint Ventures, NGOs, Cooperatives, SHGs, FPOs, FPCs, Public & Private Sector Companies, LLPs, Partnership Firms, and Proprietorship Firms.
* **Application Process:**
* Applications are invited online from prospective investors/entrepreneurs against Expression of Interest (EoI) issued by the Ministry.
* **Project Status in Tamil Nadu:**
* As of the date of the report, the Ministry has approved 2 Agro Processing Clusters in Tamil Nadu, which are at various stages of implementation. Details of these projects are provided in an annexure.
* One is a project from M/s Vamsi RS Industrial Zone from Erode, approved in 2021, with a processing and preservation capacity of 79700 MT/A.
* The other is a project from M/s Integrated Service Point Private Limited from Thiruvallur, approved in 2024, with a processing and preservation capacity of 248400 MT/A.
* **Implementation Challenges:**
* Delays in project implementation are mainly due to obtaining statutory clearances, land acquisition, regulatory clearances, establishing market linkages, and technology adoption.
* **Corrective Measures:**
* The Ministry takes up issues faced by project implementation agencies with concerned departments/agencies to ensure smooth project implementation.
* Scheme Guidelines, FAQs, and Expression of Interests are uploaded/published on the Ministry's website, SAMPADA Portal, and social media.
* States and Trade Associations are informed of scheme EOIs for wider circulation and awareness.
* The Ministry monitors projects regularly and coordinates with project implementing agencies.
* The Ministry directly and through the Project Management Agency (PMA) of the scheme guides applicants of approved projects.
**Impact Analysis**
**Entrepreneurs/Investors:**
* **Impact:** Provided with financial assistance and encouragement to establish agro-processing clusters.
* **Action Required:** Apply online through Expression of Interest (EoI) when issued, and adhere to scheme guidelines.
**Project Implementing Authorities:**
* **Impact:** Responsible for obtaining statutory clearances and addressing implementation challenges.
* **Action Required:** Obtain necessary clearances and escalate issues to the Ministry for resolution.
**Farmers, Farmer Producer Organizations (FPOs), and Rural Entrepreneurs in Tamil Nadu:**
* **Impact:** Potential beneficiaries of the scheme through access to modern agro-processing infrastructure.
* **Action Required:** Engage with the scheme to explore opportunities and potential partnerships in agro-processing clusters.
**State Government and Agencies:**
* **Impact:** Responsible for smooth and timely implementation of the projects.
* **Action Required:** Collaborate with the Ministry and project implementing agencies to resolve issues and facilitate project implementation.
Key Entities Referenced
Pradhan Mantri Kisan Sampada Yojana (PMKSY): A scheme for the development of modern infrastructure to encourage entrepreneurs to set up food processing units based on a cluster approach.
Scheme for Creation of Infrastructure for Agro Processing Clusters (APC): A component scheme under PMKSY for the development of infrastructure for agro processing.
Ministry of Food Processing Industries (MoFPI): The primary ministry responsible for implementing the Scheme for Creation of Infrastructure for Agro Processing Clusters (APC), a component scheme of the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
Tamil Nadu: The specific location where the 'Agro Processing Development of Modern Infrastructure' is taking place under the scheme.
GOVERNMENT OF INDIA
MINISTRY OF FOOD PROCESSING INDUSTRIES
LOK SABHA
UNSTARRED QUESTION NO. 2118
ANSWERED ON 12TH FEBRUARY 2026
AGRO PROCESSING DEVELOPMENT OF MODERN INFRASTRUCTURE IN TAMIL
NADU
2118. SHRI SELVAM G:
SHRI C N ANNADURAI:
Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:
(a) whether the Government has effectively implemented the Scheme for Creation of
Infrastructure for Agro Processing Development of Modern Infrastructure in Tamil Nadu
and if so, the details thereof;
(b) the details of projects approved, completed and pending under the said scheme in Tamil
Nadu, district-wise during the last five years along with the capacity created and funds
sanctioned and released;
(c) whether a large number of small and marginal farmers, Farmer Producer Organisations
(FPOs) and rural entrepreneurs in Tamil Nadu have not been able to access the benefits of
the said scheme, if so, the reasons therefor;
(d) whether delays in approvals, inadequate awareness and procedural complexities have
adversely affected the establishment of modern agro-processing units and value chains in
the State and if so, the details thereof; and
(e) the corrective measures being taken by the Government to ensure equitable access, faster
implementation and effective utilisation of agro processing infrastructure to enhance
farmers’ income and reduce post-harvest losses in Tamil Nadu?
ANSWER
THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES
(SHRI RAVNEET SINGH)
(a) to (c): The Ministry of Food Processing Industries (MoFPI) has been implementing a Scheme
for Creation of Infrastructure for Agro Processing Clusters (APC), a component scheme of the
Pradhan Mantri Kisan Sampada Yojana (PMKSY) for development of modern infrastructure to
encourage entrepreneurs to set up food processing units based on cluster approach in the country
since 2017. The Scheme is demand driven. Ministry provides financial assistance in the form of
grants-in-aid/subsidy to the entrepreneurs/ investors for establishing agro-processing clusters.
Applications under this scheme are invited online from prospective investors / entrepreneurs
against Expression of Interest (EoI) issued by Ministry from time to time depending upon
availability of funds. As per scheme guidelines Central & State PSUs/ Joint Ventures/ NGOs/Cooperatives/ Self Help Groups (SHG)/ Farmer Producer Organizations (FPO)/ Farmer Producer
Companies (FPC)/ Public & Private Sector Companies/ Limited Liability Partnerships (LLP)/
Partnership Firms/ Proprietorship Firms are the eligible entities/ organisations who can apply for
assistance under the APC Scheme. During last five years, Ministry has approved 2 Agro
Processing Clusters in the State of Tamil Nadu under this scheme, which are at various stages of
implementation. The year-wise, district-wise, category-wise details of these 2 Agro Processing
Clusters is attached at Annexure.
(d): The delay in implementing the projects is mainly due to delay in obtaining statutory
clearances, land acquisition, regulatory clearances, establishing market linkages and technology
adoption. Project Implementing Authorities themselves have to obtain these clearances. In case
of requests received from the project implementation agencies, Ministry takes up the matter with
concerned departments/agencies to resolve the issues faced by the project implementation agencies
for smooth implementation of the projects. Ministry ensures that Scheme Guidelines, FAQs,
Expression of Interests issued from time to time are uploaded/published on the official website of
the Ministry, SAMPADA Portal, and dissemination of details/facts on social media accounts of
the Ministry for wide publicity. Further, whenever scheme EOIs are issued, all States and Trade
Associations are also informed for wider circulation and awareness of EOI of the Ministry.
(e): Ministry regularly monitors the projects and coordinates with the project implementing
agencies by conducting review meetings/site visits to assess the progress of the projects. Ministry,
on the request of project implementing agencies, also takes up the matter with the concerned
department of State Government and their agencies for smooth and timely implementation. The
Ministry directly as well as through Project Management Agency (PMA) of the Scheme is
regularly in touch with all applicants of approved projects and guides them suitably during course
of implementation.ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PART (a) & (c) OF THE LOK SABHA
UNSTARRED QUESTION NO. 2118 FOR ANSWER ON 12TH FEBRUARY, 2026
REGARDING “AGRO PROCESSING DEVELOPMENT OF MODERN
INFRASTRUCTURE IN TAMIL NADU”
S Name Distric Category Date Proj Grant/S Total Year Total
r. of the t of PEA of ect ubsidy Grant/S of Process
N Proje (General/ appro cost Approve ubsidy Appr ing &
o. ct SC/ST) val (In d (in Cr.) released oval Preserv
Execu Cr.) (in Cr.) ation
tion Capacit
Agenc y
y Expecte
(PEA) d
(MT/A)
1 M/s Erode General 17.11. 33.1 9.1351 2.88 2021- 79700
Vamsi 2021 67 22
RS
Indust
rial
Zone
2 M/s Thiruv General 28.02. 42.6 10 6.67 2023- 248400
Integr allur 2024 35 24
ated
Servic
e
Point
Privat
e
Limite
d