Parliament Question: Performance of the Production Linked Incentive Scheme

GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES LOK SABHA UNSTARRED QUESTION NO. 1977 ANSWERED ON 30TH JULY, 2026 PERFORMANCE OF THE PRODUCTION LINKED INCENTIVE SCHEME

1977. SHRI ASHISH DUBEY:

SHRI YADUVEER WADIYAR:

SHRI VIVEK THAKUR:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

(a) the current status and performance of the Production Linked Incentive (PLI) scheme for the Food Processing Industries, especially in aspirational districts;

(b) the extent of investment attracted, production achieved and employment generated/job created under the PLI scheme;

(c) the current status of the development and operationalisation of Mega Food Parks along with their contribution to the growth of the organized food processing sector; and

(d) the steps taken to boost the export of Indian food products, enhance their branding and adopt new technologies in the industry? ANSWER THE MINISTER OF FOOD PROCESSING INDUSTRIES (SHRI CHIRAG PASWAN)

(a) & (b): The Ministry of Food Processing Industries is implementing the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) with an approved outlay of ₹10,900 crore for the period from FY 2021-22 to FY 2026-27. The Scheme provides performance- linked incentives on achievement of eligible incremental sales and aims to promote domestic processing and value addition, support creation of global food manufacturing champions, promote Indian food brands in overseas markets and generate employment opportunities. A total of 163 applications from 127 companies, including 69 Micro, Small and Medium Enterprises (MSMEs) are presently covered under the Scheme. The approved projects are spread across 212 locations in 22 States. Incentives amounting to ₹3,271.44 crore have been disbursed up to June 2026. The Scheme has contributed to expansion of food processing capacity, growth in sales and exports, mobilisation of investment and generation of employment. The investments undertaken under the Scheme have resulted in creation of food processing capacity of 34 lakh metric ton per annum.

Approved applicants under PLISFPI have invested ₹9,207 crore against committed investment of ₹7,722 crore and generated approximately 3.35 lakh direct and indirect employment opportunities against the target of 2.50 lakh. Sales of PLI-supported products increased from ₹58,758 crore in FY 2019-20 to ₹1,08,854 crore in FY 2025-26.Details of the units approved under the PLISFPI in aspirational districts are provided in the Annexure.

(c): The Ministry implemented the Mega Food Park Scheme, a component scheme under the umbrella scheme Pradhan Mantri Kisan Sampada Yojana since 2008. The Scheme followed a cluster-based hub-and-spoke approach for creation of primary processing, storage, common processing and enabling infrastructure. The Mega Food Park Scheme has been discontinued with effect from 01.04.2021. A total of 41 Mega Food Parks in 25 States have been approved under the Scheme, of which 25 are operational. These projects are expected to create preservation capacity of 28.57 Lakh Metric Ton Per Annum (LMTPA) and processing capacity of 15.41 LMTPA, benefitting approximately 86,881 farmers and generating 1,02,440 direct and indirect employment opportunities.

(d): Under PLISFPI, the Government promotes exports and branding of Indian food products abroad through the Branding and Marketing component. Approved applicants are provided financial incentives at the rate of 50 per cent of eligible expenditure incurred on Branding and Marketing Abroad, subject to a maximum of 3 per cent of sales of food products or ₹50 crore per year, whichever is less. The PLISFPI also promotes domestic processing and value addition through performance-linked incentives on eligible incremental sales. The investments undertaken by approved applicants have facilitated expansion of processing capacity and adoption of modern processing, packaging and manufacturing technologies. A separate category has also been provided under the Scheme for Small & Medium Enterprises (SMEs) engaged in innovative and organic food products.

The Ministry is also implementing Prime Minister Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. PMFME Scheme is a demand driven scheme aimed at providing financial, technical and business support for setting up or upgradation of micro food processing enterprises through capacity building, credit support, technology upgradation and market linkages. The Scheme supports establishment of new enterprises and upgradation of existing enterprises through 35% credit-linked capital subsidy (maximum ₹10 lakh per unit), establishment of Common Infrastructure and Common Incubation Centers (CICs) with modern processing, testing, packaging and storage infrastructure, and provides Branding & Marketing support of up to 50% of the eligible project cost for development of common brands, packaging, labelling and quality standardization. To promote adoption of modern technologies and improve export readiness, the Scheme provides Entrepreneurship Development Programmes (EDP), product-specific training and technical support through National Institute of Food Technology Entrepreneurship and Management (NIFTEM) and State Level Technical Institutions.

*****ANNEXURE Annexure referred to in reply to parts (a) & (b) of Lok Sabha unstarred question No.

1977 for answer on 30.07.2026 regarding “Performance of the Production Linked Incentive Scheme” Units Under PLISFPI Located In Aspirational Districts Investment Aspirational S. No. State Segment under PLIS under PLIS Status District (₹ crore) Ready to eat/Ready to 1 Bihar Muzaffarpur 18.50 Operational cook 2 Bihar Begusarai Fruits & Vegetables 113.00 Operational Ready to eat/Ready to 3 Jharkhand Ranchi 5.06 Operational cook Udham Singh 4 Uttarakhand Organic Products 0.00 Operational Nagar Udham Singh Ready to eat/Ready to 5 Uttarakhand 6.05 Operational Nagar cook Udham Singh Millet Products 6 Uttarakhand 0.00 Operational Nagar Udham Singh Millet Products 7 Uttarakhand 0.00 Operational Nagar Udham Singh 8 Uttarakhand Fruits & Vegetables 126.67 Operational Nagar Udham Singh 9 Uttarakhand Millet Products 0.00 Operational Nagar Udham Singh 10 Uttarakhand Millet Products 0.00 Operational Nagar

Note: Under the Production Linked Incentive Scheme for Food Processing Industry, there is no provision of committed investment for Millet and Organic product segments. *****