PLI scheme for Millet Based Products
PLI scheme for Millet-Based Products (PLISMBP)
The Government has approved the Production Linked Incentive Scheme for Food Processing Industry for Millet-based products (PLISMBP) for implementation during 2022-23 to 2026-27 with an outlay of 800 cores. The scheme is being implemented by the Ministry of Food Processing Industries (MoFPI). MoFPI vide a Notification dated 27.6.2022 invites applications for availing sales-based incentives for millet-based products having more than 15% millet content by weight/volume under the scheme from the following categories of Applicants. The present article briefs the PLI scheme Millet Based Products.
The objective of the PLI scheme for Millet-Based Products
The primary objective of the scheme is to encourage the use of millets in Ready to Eat (RTE) and Ready to Cook (RTC) products and incentivize them under the PLI scheme to increase the usage of millets in food products and promote its value addition and their sale in domestic and exports markets.
The applicant for the Scheme shall be classified into 2 categories viz MSME and Large Entity. The following type of applicants can apply for the Production linked Incentives Scheme for Millet Based Products (PLISMBP)
- Proprietary Firm
- Partnership Firm
- Limited Liability Partnership (LLP)
- Company registered in India
EOI Released for Millet-based products in FY 2022-23
Ministry of Food Processing Industries invites applications for availing sales-based incentives for millet-based products having more than 15% millet content by weight/volume under the scheme from the following categories of Applicants
- Legal Entity: Applicant having a minimum sale of all foods products of Rs.250 crore in FY 2020-2021
- MSMEs: Applicants having a minimum sale of all food products of Rs.2 Crore in FY 2020-21 and having Udayam registration certification
Note: In case an MSME applicant intends to submit a proposal for sales of food products above 250 crores including export sales to avail incentive under the “Large Entity” Category, then the eligibility and evaluation criteria applicable to such proposals shall be as per “Large Entity” Category.
Eligibility Criteria for PLI scheme for Millet-Based Products
The eligibility criteria to apply for the Production linked Incentives Scheme for Millet Based Products (PLISMBP) are listed as follows:
- Udyam Registration Certificate is mandatory for MSME Applicants
- Incentives under the scheme shall be provided to the Applicants engaged in manufacturing or intending to manufacture eligible products in India & sales of such products.
- The applicant shall be required to achieve a minimum CAGR of 10% on sales of the eligible products from the base year for the grant of incentive.
- The Applicant may include eligible products that it is not manufacturing presently but intends to manufacture during the tenure of the scheme.
- The entire chain of the manufacturing process, including the primary processing, of eligible food products starting from raw materials to the finished product covered in the Application for the incentive under the Scheme, is required to take place in India
- The name of Applicant /Promoters should not appear in the Suit/Non-Suit Filed Cases (Wilful Defaulters 25 lakhs and above, defaulter 1 crore and above) List of CIBIL and SEBI Debarred List as on the date of application
Eligible Food Products
Packaged and Branded Ready to Cook/Ready to Eat (RTC/RTE) food products in consumer packs with more than 15% of millets by weight/ volume in product composition. An indicative list of eligible products is given in the documents:
Primary processed millet commodities like de-husked/ polished millet grains, color sorted millet grains and Millet Flours/ Atta is excluded under the PLI scheme for Millet based Products
The Incentive under the PLI scheme
The incentive payable for the selected applicant for a particular year shall be computed as follows:
The incentive for approved eligible product= Incremental Sales of approved Product x corresponding rate of incentive.
The base year for calculation of Sales, Incremental Sales, and Incentive payable would be Financial Year 2020-21 for the first 3 years (Yl, Y2 & Y3). For 4″h& 5h years (Y4 & Y5), the base year would shift to FY 2022-23 & FY 2023-24 respectively.
The allocated outlay of the Production linked Incentives Scheme for Millet Based Products (PLISMBP) is Rs.500 crore for incentives to Large Entity and Rs.300 crore for MSME during the tenure of the scheme.
Last date for Submission of Application
The last date for submission of applicants for the Production linked Incentives Scheme for Millet Based Products (PLISMBP) for FY 2022-23 is 29.7.2022 upto 5 Pm.
The applicant shall make payment of non-refundable Application Fee for online Application’. Such Fee is Rs.100000 for a large entity and Rs.10000 for MSME applications: The Application fee would be accepted electronically through NEFT / RTGS to the bank account as per details given hereunder:
|Name of the Bank||Central Bank of India|
|Branch Name||Udyog Bhawan, New Delhi|
The scanned copy or details of online payment shall be submitted with the online proposal, failing which the proposal will not be considered
Tenure of the Scheme
The tenure of the Production linked Incentives Scheme for Millet Based Products (PLISMBP) is five years from Financial Year 2022-23 to Financial Year 2026.
- The Incentive payable for a particular year will be due for payment in the following year. The Incentive payable for Financial Year 2026-27 will be due for payment in the year 2027-28
The following documents are to be furnished for the Production linked Incentives Scheme for Millet Based Products (PLISMBP):
- Copy of the memorandum and articles of association or equivalent registration document, Partnership Deed, and any equivalent document.
- Shareholding pattern, the share of the partners
- Self-certified copies of Annual Reports including Annual Financial Reports along with schedules, audited and complete Balance Sheet, for 3 years. Most recent reports are to be provided.
- Profit before Tax (PBT) and Profit after Tax (PAT) – (last 3 years)
- Self-certified copies of PAN, and GST Certificate for the applicant
- Self-certified copies of the brief profile of Chairman, CEO, CXOs, Promoter, and Key Managerial Persons along with their PAN/ DIN
- Key Personnel Details: Contact details of three senior employees of Applicant. Details would include Name, Designation, Address, phone, and email.
- Udyami Registration Certificate by MSME Applicants
- Self Certification on% of Millet Content in the Products applied for
- FSSAI License for eligible products applied for Front and Back Photographs of each of the Millet Products applied for, displaying the % of millet contents in the product
- Certificate from Statutory Auditor or Independent Chartered Accountant, whichever is applicable, on the Sales, Domestic Sales, Export Sales of all food products and Sales, Domestic Sales, Export Sales of eligible food products.
- Applicant, in its Application form, shall provide quantity and unit of measurement of millets/millet flour procured during FY 2020-21
- An undertaking in prescribed format for consenting audit of their manufacturing sites/ offices for verification of information
The application will be invited through Expression of Interest (EOI). As mentioned above, MoFPI has now released EOI for Production linked Incentives Scheme for Millet Based Products (PLISMBP) FY 2022-23.
The interested entities should submit their proposals online for Production Linked Incentives Scheme Millet Based Products.
- All applications will be submitted through an official web portal of the Production Linked Incentive Scheme (PLIS).
- To apply, the applicant needs to register on the portal. Click on the Register option to proceed further.
- An application page for user registration will be displayed. Provide all mandatory details such as Organization details and Authorized Person Details. After furnishing the details click on the Register option.
- On successful registration, the username and password will be sent to the official mail ID. Select the login option from the homepage to log in to the portal.
- The applicant is required to submit the Application in a prescribed format. The format of application for the PLI scheme for the Food Processing Industry is attached here for reference.
- An Applicant needs to specify its own and contract manufacturers’ manufacturing sites which are proposed to be used for sourcing eligible products for sale
- Upon successful submission of an Application, PMA will issue a unique Application ID to the Applicant for all future references about the Scheme
- All eligible Applicants shall be evaluated and ranked as per the evaluation criteria. The examination shall be completed within 15 working days from the date of receipt of the Application window or any subsequent submission of the additional information or clarification.
- Note: No Application will be accepted after the end of the Application window.
- The applicant shall submit projections for sales of eligible products for implementation years. Incentives shall be calculated based on the projection submitted by the applicant.
- No “Large Entity” selected for eligible products would get an incentive, more than 100 crores of the allocated outlay, and no “MSME Applicant” would get more than 40 crores of the allocated outlay during the tenure of the scheme. 5.4 The number of selected Applicants in each “Category of Applicants” shall be limited to the allocated outlay i.e., 500 crores for incentives to Large Entities and z 300 crores for MSME during the tenure of the scheme.
Procedure to Claiming Incentive
For claiming Incentives under the Scheme, Applicants shall submit claims for disbursement of Incentives to the PMA.
Applicants shall ensure that the claims are complete in all respects and are accompanied by all the documents required as per the format prescribed.PLI-Millets Claim
An Applicant shall submit a claim for disbursement of Incentive on an annual basis for the Sales made from April to March of the previous Financial Year. Claims for any period shall be made only once unless withdrawn, and no subsequent party claims shall be allowed for the said period
The Applicants shall file claims for disbursement of Incentive within 8 months from the end of the financial year to which the claim pertains.
- In receipt of the Claim for disbursement, the PMA should share relevant information with the concerned Technical Committee for their advice as required in the mandate of the Committee or on any other issue referred by MOFPI to the concerned Committee. The Committees should provide their advice on the matters referred to them
- MoFPI would consider and approve claims for disbursement, as examined and recommended by the PMA, for disbursement of Incentives. MoFPI would disburse funds after completion of all pre-disbursal formalities by PMA.
- The incentive disbursement would be through Direct Bank Transfer through PFMS or any other mechanism in the name of the Applicant only.