**Policy Summary: Promoting Entrepreneurship amongst SC/ST/OBC Categories in the Food Processing Industry**
The Ministry of Food Processing Industries (MoFPI) is actively supporting entrepreneurship within the Scheduled Castes (SC), Scheduled Tribes (ST), and Other Backward Classes (OBC) categories through several central sector and centrally sponsored schemes. These include the Pradhan Mantri Kisan Sampada Yojana (PMKSY), the Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), and the PM Formalization of Micro Food Processing Enterprises (PMFME) scheme.
The PMFME scheme incorporates entrepreneurship development and product-specific skilling to benefit all entrepreneurs, including those from SC/ST/OBC backgrounds, through its capacity building component. While MoFPI has not conducted specific studies on the reach and impact on SC/ST/OBC entrepreneurs, dedicated fund allocations exist within PMKSY and PMFME, with 8.3% and 4.3% of allocated funds earmarked for SC and ST categories, respectively.
Furthermore, the PMKSY guidelines include preferential provisions for SC/ST applicants. These provisions encompass reduced net worth requirements (equal to the grant sought), lower term loan requirements (10% of eligible project cost compared to 20% for general proposals), reduced equity requirements (10% of eligible project cost compared to 20% for general proposals), an enhanced grant level (50% of eligible project cost compared to 35% for general proposals, subject to maximum ceilings), and a lower minimum project cost requirement of Rupees One Crore for Creation/Expansion of Food Processing/Preservation Capacities Scheme projects (compared to Rupees Three Crores for general proposals).
This information was provided by the Minister of State for Food Processing Industries, Shri Ravneet Singh, in a written reply in Lok Sabha on July 31, 2025. (Release ID: 2150889)
Key Entities Referenced
Ministry of Food Processing Industries: A government ministry responsible for food processing industries in India. Also referred to as MoFPI.
Pradhan Mantri Kisan Sampada Yojana: A Central Sector Scheme implemented by the Ministry of Food Processing Industries (MoFPI). Also referred to as PMKSY.
Production Linked Incentive Scheme for Food Processing Industry: A Central Sector Scheme implemented by the Ministry of Food Processing Industries (MoFPI). Also referred to as PLISFPI.
PM Formalization of Micro Food Processing Enterprises: A Centrally sponsored scheme being implemented by the Ministry of Food Processing Industries (MoFPI). Also referred to as PMFME.
SCSTOBC: Refers to Scheduled Castes, Scheduled Tribes, and Other Backward Classes categories in India.
Lok Sabha: The lower house of the Parliament of India.
Shri Ravneet Singh: Minister of State for Food Processing Industries.
Delhi: The location where the press release was posted.
Ministry of Food Processing Industries
Promoting Entrepreneurship amongst SC/ST/OBC
Categories
Posted On: 31 JUL 2025 5:56PM by PIB Delhi
Ministry of Food Processing Industries (MoFPI) is implementing two Central Sector Schemes namely
Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and Production Linked Incentive Scheme for Food
Processing Industry (PLISFPI). Further, a Centrally sponsored scheme namely PM Formalization of Micro
Food Processing Enterprises (PMFME) scheme is also being implemented by MoFPI.
Under Capacity building component of the PMFME scheme, training is imparted for
Entrepreneurship Development Skilling (EDP+) & product specific skilling to meet the requirement
of food processing industry among all categories of Entrepreneur including SC/ST/OBC
entrepreneurs.
MoFPI has not conducted any specific study in reaching out to and benefitting SC/ST/OBC
entrepreneurs in food processing sector. However, under PMKSY and PMFME, 8.3% and 4.3% of
allocated fund is earmarked for SC and ST category respectively. Further, the following preferential
provisions have been made in component scheme guidelines of PMKSY for SC/ST category:
i. Net Worth requirement reduced to amount equal to grant sought, in comparison to 1.5 times for
proposals from general areas;
ii. Term Loan requirement reduced to 10% of eligible project cost, in comparison to 20% for proposals
from general areas;
iii. Equity requirement reduced to 10% of eligible project cost, in comparison to 20% for proposals from
general areas;
iv. Quantum of grant at enhanced level of 50% of eligible project cost, in comparison to 35% for proposals
from general areas (Subject to the maximum ceiling under respective sub-schemes);
v. Requirement of minimum project cost reduced to Rupees One Crore, in comparison to rupees Three
Crores in r/o Creation / Expansion of Food Processing & Preservation Capacities Scheme projects [for
other component schemes, no such criteria is fixed]
This information was given by the Minister of State for Food Processing Industries Shri Ravneet Singh in a
written reply in Lok Sabha today.
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STK
(Release ID: 2150889)