Parliament Question: PLI Scheme in Karnataka

**Executive Summary** This document answers Lok Sabha Unstarred Question No. 3156 regarding the Production Linked Incentive (PLI) Scheme in Karnataka, answered on December 18, 2025. It outlines the number of approved applications under the PLI scheme, selection criteria, and monitoring mechanisms in place. The response provides specifics about investment, production, and compliance. **Key Points / Main Content** * **Approved Applications:** * Sixteen companies, with twenty-one locations, have been approved under the PLI Scheme for Food Processing Industries (PLISFPI) and Production Linked Incentive Scheme for Millet-Based Products (PLISMBP) in Karnataka. * The approved applications span Category-I (Ready-to-Eat/Ready-to-Cook, Fruits & Vegetables, Marine), Category-II (Organic), Category-Millet (Large Entity and MSME), and Category-III (Branding & Marketing abroad). * **Investment:** * Approved applicants have made investments of Rs. 312.87 crores in Karnataka against the committed investment of Rs. 271.58 crores, which is 15.20% more than committed investment. * All units approved under the scheme have started commercial production. * **Selection Criteria (PLISFPI and PLISMBP):** * Criteria are defined in the scheme guidelines (Annexure). * Category I: Minimum sales from Rs. 150 crore to Rs. 600 crore depending on product with minimum investment from Rs. 50 crore to Rs. 100 crore. * Category II: Applicant must have Udyog Aadhar/ Udyami Registration. Achieved a minimum sales of Rs. 1 crore during 2019-20 for each innovative / organic product, Applicant must be registered with APEDA * Category III: Only Indian Brands are covered. Branding & Marketing must be undertaken either by the Applicant directly or through its subsidiary or any other Agency. * Millet Products: Packaged and Branded Ready to Cook/Ready to Eat (RTC/RTE) food products in consumer packs with more than 15% of millets. Large Entity minimum sales of food products more than Rs.250 crore, MSME minimum sales of food products more than Rs.2 crore * **Monitoring Mechanisms:** * The Ministry of Food Processing Industries (MoFPI) has appointed the Industrial Finance Corporation of India (IFCI) Limited as the Project Management Agency (PMA). * The PMA is responsible for evaluating proposals and scrutinizing incentive claims. * Scrutiny involves examining invoices, Statutory Auditors' certificates certifying sales, reconciliation with GST filings, Chartered Engineers certificates, and physical inspections. * Standard Operating Procedures (SOPs) are prescribed to ensure compliance with minimum sales and investment limits for claiming PLI incentives. **Impact Analysis** **Stakeholder: Food Processing Companies in Karnataka** * **Impact:** * Companies that have already been approved under the PLI scheme in Karnataka benefit from the incentives and investment opportunities. * These companies are also subject to monitoring for compliance with the scheme's requirements. * **Action Required:** * Approved companies must ensure compliance with sales and investment limits to claim PLI incentives. * Companies must cooperate with the PMA (IFCI) during the evaluation and scrutiny processes. **Stakeholder: Ministry of Food Processing Industries (MoFPI)** * **Impact:** * MoFPI is responsible for overseeing the implementation of the PLI scheme in Karnataka. * The ministry is also responsible for ensuring that the scheme is achieving its objectives. * **Action Required:** * MoFPI must continue to monitor the implementation of the PLI scheme in Karnataka. * The ministry must also take action to address any issues or challenges that arise.

Key Entities Referenced