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Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC) Scheme

Updated on: Aug 26th, 2021 - 6:18:48 AM

7 min read

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The Creation/Expansion of Food Processing and Preservation Capacities (CEFPPC) Scheme promotes the creation of preservation capacities, processing, modernisation and expansion of existing food processing units to increase the level of processing and reduce the level of wastage. 

The individual units undertake the processing activities covering a wide range of post-harvest processes resulting in the value addition and enhancing shelf life with specialised facilities required to preserve perishables. The CEFPPC scheme provides financial assistance for the setting up of new units and the expansion or modernisation of the existing individual units.

The expansion of food processing units helps to increase the level of processing and reduce wastage. The introduction of modern technology in the processing units makes a difference in the process efficiency and improvement in the quality of the end product. 

Objectives of CEFPPC Scheme

The CEFPPC Scheme’s main objective  is to create processing and preservation capacities and modernise or expand existing food processing units to help them:

  • Increase the level of processing. 
  • Increase value addition.
  • Reduce wastage. 
  • Enhance farmers’ income.

Benefits Provided Under CEFPPC Scheme

The CEFPPC scheme provides financial assistance in the form of grant-in-aid to the food processing units as follows:

  • In general areas – 35% of the eligible project cost, subject to a maximum of Rs.5 crore.
  • In North-Eastern states and difficult areas – 50% of the eligible project cost, subject to a maximum of Rs.5 crore. 

North-Eastern states include Sikkim, and the difficult areas include- 

  • Himalayan states/UTs (Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh).
  • State Notified ITDP (Integrated Tribal Development Projects) areas.
  • Islands (Lakshadweep and Union Territories of Andaman and Nicobar).

Eligibility Criteria for CEFPPC Scheme

The eligible food processing sectors under the CEFPPC scheme are-

  • Fruits and vegetable processing.
  • Meat/fish/poultry processing.
  • Milk processing. 
  • Ready to eat, breakfast cereals, ready to cook food products, bakery, snacks and other food products, including nutritional health foods. 
  • Grains, pulses, modern rice milling, oil-seed milling and processing based on modern technology. 
  • Other agri-horti products, including soybean, spices, mushroom processing, coconut, honey processing, etc. 
  • Natural food flavours, food extracts and colours, food additives, guar gum, oleoresins, cocoa products etc. 
  • Any other sector that makes food products. 

The eligible organisations that are treated as implementing agencies of the CEFPPC scheme are-

  • Central and State Public Sector Units (PSUs). 
  • Joint venture units.
  • Farmer Producer Organisations (FPOs).
  • Non-Governmental Organisations (NGOs). 
  • Cooperatives. 
  • Self-Help Groups (SHGs).
  • Public and private limited companies. 
  • Limited Liability Partnerships (LLPs).
  • Corporate entity.
  • Proprietorship firms.
  • Partnership firms.

The above organisations must propose to engage or should be engaged in the creation, expansion, or modernisation of food preservation, and processing capacities are eligible to receive financial assistance under this scheme.

CEFPPC Scheme Application Process

The applications for this scheme are invited through an Expression of Interest (EoI) issued from time to time for inviting proposals. Applicants must submit their loan applications to the banks for appraisal and sanction of the term loan for the projects before filing applications under this scheme. 

The application for the CEFPPC scheme needs to be submitted online on the Ministry of Food Processing Industries Portal along with the required documents. Subsequently, the hard copy of the application needs to be sent directly to the Ministry of Food Processing Industries (MoFPI) within ten days after uploading the online application.

Upon submission of the application online on the portal, the applicant will receive an acknowledgement number of the application on the email ID for future reference. 

Documents Required for CEFPPC Scheme

  • Detailed Project Report (DPR).
  • Sanction letter of term loan from a bank or financial institutions including Non-Banking Financial Companies (NBFCs) registered with Reserve Bank of India (RBI).
  • Bank appraisal indicating techno-economic viability parameters of the project. 
  • Certificate of registration or incorporation of the organisation, Memorandum of Association and Articles of Association. 
  • The audited statement of accounts and latest annual report, in case of expansion or modernisation. 
  • Cost and item-wise details of technical civil works duly certified by a Chartered Engineer (Civil).
  • Item wise and cost wise details of Plant & Machinery envisaged duly certified by Chartered Engineer (Mechanical).
  • Registered ownership/land allotment document is in the name of the applicant firm. In the case of a lease, the lease deed of the land in the name of the applicant firm. 
  • Industrial Entrepreneur Memorandum (IEM) registration, Udyam Registration or Entrepreneur’s Memorandum.
  • Caste certificate provided by the competent authority in case of ST/SC promoter of the applicant organisation. 

Implementation of CEFPPC Scheme

The MoFPI appoints the Project Management Agencies (PMA) to evaluate the applications received in response to the EoI at the end of every month. The Technical Committee (TC) will further scrutinise the proposals evaluated by the PMA for making recommendations to the Inter-Ministerial Approval Committee (IMAC). 

The decision of the IMAC will be final. The MoFPI will sanction grants-in-aid if the applicants fulfil the eligibility criteria and meet the minimum qualifying assessment criteria. The proposals will be sanctioned based on their preference criteria, merit order, and proposal evaluation according to the assessment criteria. 

The MoFPI will disburse the grants through the bank or the financial institution that has sanctioned the term loan for the project. The grants will be credit-linked and released in two instalments, each at the rate of 50% of the grant.

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