The Centre has permitted investment proposals of 60 processed foods companies together with Hindustan , Dabur, ITC, Amul, Nestle, Parle and under its Production Linked Incentive (PLI) scheme. In all, 91 companies had utilized to the Ministry of Food Processing Industries’ invitation for Expression of Interest (EOI) in mid-2021 for availing the scheme, under which the federal government will supply incentives value Rs 10,900 crore to the companies on the idea of their investments and gross sales.
Approval has been accorded under PLI Scheme for the meals processing trade for Category 1, the ministry notified on its web site on Monday. Executives mentioned the scheme will assist in accelerating home development, help in creating jobs, expedite important shift from unbranded to packaged foods, and catalyse exports.
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“The production linked incentive scheme has been crafted to promote domestic manufacturing and would lead to creation of large-scale manufacturing capacity besides promoting job creation in a critical sector like food processing,” mentioned (*60*) chief government Mohit Malhotra.
The allocation is for a five-year interval, and contains incentives on a range of processed foods classes. The PLI scheme for the meals processing sector has three broad elements. The first of these is incentivising manufacturing of ready-to-cook, ready-to-eat, processed vegatables and fruits, marine merchandise and mozzarella cheeses. The scheme additionally incentivises natural merchandise of small and medium enterprises, and thirdly helps branding and advertising and marketing in abroad markets to speed up emergence of robust Indian manufacturers globally.
“This is the first time such a scheme which combines incentives on investments and sales has been announced. Not only will this help us fuel growth domestically, it will also help us become more competitive in the exports market,” mentioned RS Sodhi, managing director of Gujarat Cooperative Milk Marketing Federation (GCMMF), proprietor of India’s largest dairy model Amul, which sells milk, cheese, butter and ice-cream.
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The PLI scheme is an element of the Indian authorities’s announcement of Atmanirbhar Bharat Abhiyan for numerous sectors together with processed foods, white items and prescription drugs.
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The meals processing sector has been seeing important investments over the previous three-four quarters as companies anticipate larger demand and consumption revival after extreme provide disruptions quickly after the outbreak of the Coronavirus pandemic. Nestle has dedicated recent investments of Rs 2,600 crore over the subsequent three to 4 years, whereas Britannia elevated investments from Rs 300 crore to Rs 550 crore in Tamil Nadu.
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Analysts mentioned the incentives are constructive for packaged foods companies with good points throughout the worth chain, and profit producers with economies of scale and customers who may get extra aggressive costs.
https://cfo.economictimes.indiatimes.com/news/govt-approves-investment-proposals-of-60-processed-foods-companies-under-pli-scheme/88135736
