Food Processing Industry (FPI) Subsidy Rate in Odisha

The Ministry of Food Processing Industries (MoFPI) of the Government of India implemented the FPI subsidy in Odisha for businesses in the Food Processing Industry with an aim to expand the business in Odisha. The FPI subsidy in Odisha is offered to businesses as reimbursement based on the investment they made over equipment, establishment, transport and more. The FPI subsidy in Odisha is beneficiary for businesses in State Food Parks at strategic locations such as, Deogarh, Bhadrak, Bargarh, Nawrangpur (Maize Park), Sambalpur, Ganjam, Bolangir, Kandhamal and Kalahandi over a minimum land area of 25 acre each promoted by State Government through IDCO/ OSIC/ private agencies.

The FPI Subsidy in Odisha for MSMEs units in industrially backward districts including KBK or Up to Rs 10 lakhs for units engaged in recycling of E-waste, Hospital waste, Construction & demolition waste. The FPI subsidy in Odisha is implemented by the MoFPI that focuses on expansion of business to provide jobs for the locals and boost the economic growth of Odisha.

The Ministry of Food Processing Industry (MoFPI) implemented the FPI Subsidy in Odisha to boost the economic development of the state by attracting investments and generating employment. The FPI subsidy in Odisha reduces operational costs, expands business, creates job opportunities and promotes entrepreneurship for development of the Food Processing Industry in the state. Some of the benefits of the FPI subsidy in Odisha for development of the Food Processing Industry (FPI) are written below.

1. Promoting Entrepreneurship: The FPI subsidy in Odisha promotes business owners to expand their business beyond the local region by easing the process to start up a new business.
2. Economic Growth: The local economy of the state experiences positive impact as the FPI subsidy in Odisha supports businesses for improvement of import and export of goods.
3. Lower Expenses:The FPI subsidy in Odisha makes the transportation costs for businesses sustainable and cost efficient for both businesses and consumers in Odisha.
4. Market Expansion: Businesses in the local region can expand their range and compete in the bigger market due to the FPI subsidy in Odisha.
5. Job Opportunities: The businesses with FPI subsidy in Odisha also generate job opportunities for locals which results in the rise of living standards in Odisha.

Under the FPI subsidy in Odisha, maximum subsidy amount to prevent exploitation or unfairness of the intermediary. The FPI subsidy in Odisha is categorized under 11 programs which are:

• Capital Subsidy

  Capital Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  35%	Up to ₹5 crore	For cold chain, value addition and preservation infrastructure for non-horticultural produce or for primary processing centers/collection centers

• Assistance for Reefer Vehicles

  Assistance for Reefer Vehicles

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  35% of the cost of standalone New Reefer Vehicle(s) / Mobile pre-cooling van(s)	Up to a maximum of ₹25.00 lakh	For carrying & transporting both Horticultural & non-Horticultural produce

• Assistance to Entrepreneurs

  Assistance to Entrepreneurs

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of the expenditure	Up to a maximum of ₹5.00 lakh

• Assistance for Mega Food Park

  Assistance for Mega Food Park

  Maximum Subsidy Rate	Maximum Subsidy Amount
  Up to 20% of the project cost	Limited to ₹15 crore

• Assistance to ULBs for Modernization of Meat Shops

  Assistance to ULBs for Modernization of Meat Shops

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  35% of cost of machinery	Up to ₹5 lakh	NA
  50% of cost of machinery	Up to ₹5 lakh	Only in industrially backward districts KBK (Kalahandi-Bolangir-Koraput region)

• Assistance for Human Resource Development

  Assistance for Human Resource Development

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  One-time grant of 50% of the cost	Up to ₹1 crore	Only to University/Institute for courses in Food Processing

• Quality Certification

  Quality Certification

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of the expenditure	Up to a maximum of ₹2.00 lakh

• Patent Registration

  Patent Registration

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of the expenditure	Up to a maximum of ₹5.00 lakh

• Capital Subsidy under Food Processing Policy

  Capital Subsidy under Food Processing Policy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  25%	Up to ₹2 crore	NA
  33%	Up to ₹3 crore	For industries setup by SC, ST, Women or in KBK districts (Kalahandi-Bolangir-Koraput region)
  25%	Up to ₹5 crore	For Anchor industries
  50%	Up to ₹4 crore	For state-of-the-art NABL accredited Food testing labs outside Cuttack, Berhampur & Bolangir
  35%	Up to ₹5 crore	For cold chain, value addition and preservation infrastructure for non-horticultural produce or for primary processing centers/collection centers for all produce

• Trademark Assistance

  Trademark Assistance

  Maximum Subsidy Rate	Maximum Subsidy Amount
  50% of expenditure	Up to ₹25,000

• Project Report Subsidy

  Project Report Subsidy

  Maximum Subsidy Rate	Maximum Subsidy Amount	Limitations
  2% of project cost	One-time grant of ₹50,000	Only one, whichever is lower for preparation of DPR/detailed feasibility report

The FPI Subsidy in Odisha was implemented with the goal to boost the economy and financial status of local businesses in the region. The following are some of the features of FPI subsidy in Odisha:

• Simple Disbursement of Loan: During the “Moratorium” phase, when no revenue is generated initially after the project implementation, interest on the loan that has been paid is calculated using simple interest. After the moratorium phase is over, all loans have compound interest but the interest lowers gradually.
• Improve in prospect buyer: Various advantages are offered to potential purchasers, including consumers, food processing industries (FPI), exporters, and more to be efficient intermediaries.
• Frequent disbursement of loans: The loan and FPI subsidy in Odisha is disbursed in phases over a tenure of 3 to 5 years with intervals of 3 to 6 months, to follow up the implementation period.