Food Processing Industry (FPI) Subsidy Rate in Jharkhand

Updated on June 19, 2025 02:53:20 PM

The schemes for food processing industries are instituted by the Ministry of Food Processing Industries (MoFPI) of the Government of India to promote the expansion of business in Jharkhand. There are distinctive agricultural and food industry qualities that are structured because of the geography, culture and economic development of Jharkhand. Any new business that is started in the state can redeem FPI subsidy plans which offer reimbursement based on the amount of investment business owners made over equipment, establishment, transport and more.

The FPI subsidy plans for businesses in Jharkhand are designed for the expansion of business, provide job opportunities to locals and more through the FPI subsidy in order to boost the growth of economy and sales. In the following article, you will learn about the FPI subsidy rate in Jharkhand as well as its benefits that will support the businesses in Jharkhand.

The benefits that the Food Processing Industry (FPI) subsidy provides in Jharkhand are mentioned below.

1. Market Expansion:Local businesses can utilize the FPI subsidy to expand the markets beyond their region and compete in bigger regions.
2. Economic Development: The FPI subsidy has a positive impact on the local economy as it supports businesses to improve import and export of goods.
3. Job Creation: The FPI subsidy in Jharkhand provides job opportunities to locals and increases employment which results in betterment of living standards.
4. Cost Reduction: The FPI subsidy helps to lower transport costs for businesses in Jharkhand, which makes transport of goods and services sustainable and cost efficient for both businesses and consumers.
5. Encouraging Entrepreneurship: The FPI subsidy also makes it easier to start up new businesses and helps to create a more lively and varied local economy.

Under the Food Processing Industry (FPI) subsidy rate in Jharkhand, Capital Subsidy - Financial assistance to food processing units in the form of grants-in-aid (Primary Processing Centres / Collection Centers in Rural Areas) provides a maximum amount of Rs 2.5 crores of grants-in-aid for PPC/ CC will be provide at 50% of the Bank Appraised Project Cost for the General Areas and 75% in Integrated Tribal Development Project (ITDP) Areas respectively. The maximum subsidy amount is granted to businesses to ensure that the scheme aids in prevention of exploitation or unfairness of the intermediary. The FPI subsidy rate in Jharkhand is categorized under 6 categories which are:

• Capital Subsidy

  Capital Subsidy - Financial assistance to food processing units in the form of grants-in-aid (Processing Units - New Unit, Modernization, Upgradation, Expansion & Diversification)

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) 35% of the Cost of Plant & Machinery and Technical Civil Works	Subject to a maximum of Rs. 500 lakhs	In General Areas
  b) 45% of the Cost of Plant & Machinery and Technical Civil Works	Subject to a maximum of Rs. 500 lakhs	In Integrated Tribal Development Project (ITDP) Areas

• Capital Subsidy - Financial assistance to food processing

  Capital Subsidy - Financial assistance to food processing units in the form of grants-in-aid (Cold Chain, Value Addition, and Preservation Infrastructure)

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) 35% of the Bank Appraised Project Cost including IDC	Subject to a maximum of Rs. 7 crores per project	In general areas (land and pre-operative expenses not eligible for grant calculation)
  b) 50% of the Bank Appraised Project Cost including IDC	Subject to a maximum of Rs. 7 crores per project	In Integrated Tribal Development Areas (land and pre-operative expenses not eligible for grant calculation)

• Capital Subsidy - Financial assistance to food processing

  Capital Subsidy - Financial assistance to food processing units in the form of grants-in-aid (Establishment and Modernisation of Meat and Fish Shops)

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) 50% of the cost of Machinery / Equipment and TCW	Subject to a maximum of Rs. 5 Lakhs	In General Areas
  b) 75% of the cost of Machinery / Equipment and TCW	Subject to a maximum of Rs. 5 Lakhs	In Integrated Tribal Development Project (ITDP) Areas

• Interest Subsidy - Cold Chain, Value Addition, and Preservation Infrastructure

  Interest Subsidy - Cold Chain, Value Addition, and Preservation Infrastructure

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) Interest subsidy at 6% paid directly to Bank/FI	Subject to a maximum of Rs. 2.00 crores per project or actual interest accrued on term loan, whichever is less	Interest subvention for 5 years from project completion in general areas
  b) Interest subsidy at 7% paid directly to Bank/FI	Subject to a maximum of Rs. 3.00 crores per project or actual interest accrued on term loan, whichever is less	Interest subvention for 7 years from project completion

• Interest Subsidy

  Interest Subsidy - Mega Project in Food Processing

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) Interest subsidy at 6% paid directly to Bank/FI	Subject to a maximum of Rs. 2.00 crores per project or actual interest accrued on term loan, whichever is less	For Cold Chain, Value Addition and Preservation Infrastructure
  b) Interest subsidy at 7% paid directly to Bank/FI	Subject to a maximum of Rs. 3.00 crores per project or actual interest accrued on term loan, whichever is less	For Mega Projects in Food Processing

• Fixed Capital Rebate

  Fixed Capital Rebate - Grant in Aid

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) 35%-45%	Subject to a maximum of INR 5 Crores	For Processing Units (New Unit, Modernisation, Upgradation, Expansion & Diversification)
  b) 35%-50%	Subject to a maximum of INR 7 Crores	For Cold Chain, Value Addition and Preservation Infrastructure
  c) 50%-75%	Subject to a maximum of INR 2.5 Crores	For Primary Processing Centres / Collection Centres in Rural Areas
  d) 35%-45%	Subject to a maximum of INR 12 Crores	For Mega Projects in Food Processing
  e) 50%-75%	Subject to a maximum of INR 5 Lakhs	For Establishment and Modernization of Meat and Fish Shops

• Interest Cost Subvention

  Interest Cost Subvention

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  a) 6%-7%	Subject to a maximum of INR 2 Crores	For Cold Chain, Value Addition and Preservation Infrastructure
  b) 6%-7%	Subject to a maximum of INR 3 Crores	For Mega Projects in Food Processing

The Food Processing Industry (FPI) subsidy in Jharkhand aims to boost the economy and financial standing of local businessmen in the region. The following are some of the features of FPI subsidy in Jharkhand:

• Disbursement of loan will be simple: The "moratorium" phase is the period when no revenue is generated at the beginning of the project implementation, hence, simple interest is used to calculate the interest on the portion of the loan that has been paid out during the "moratorium" phase. After the moratorium phase is over, all loans have compound interest, although the interest rate is progressively reduced.
• Frequent disbursement of loans: To follow up the implementation period, the loan and FPI subsidy will be disbursed in phases over a tenure of 3 to 5 years with intervals of 3 to 6 months.
• Improve in prospect buyer: Various advantages are provided to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.