Scheme for Creation or Expansion of Food Testing Lab

Quality and Food Safety have become a competitive edge in the global market for food products. In the years, various aspect of Total Quality Management (TQM) such as quality control, quality system and quality assurance have operated for the development of food processing sector in the country. Apart from this, in the interest of public health and consumer safety, there is a need to ensure the quality of any food products manufactured and sold in the market. Keeping this in view, the Government has decided to provide financial assistance for setting up or expansion of food testing lab. In this article, we look at the Scheme for Creation or Expansion of Food Testing Lab in detail.

Objectives of the Scheme

The objectives of the scheme are listed below:

• To analyze the samples received from the food processing industry.
• To lessen the time taken for analysis of samples by reducing the transportation time of samples.
• To ensure compliance of domestic or international standards of food.
• To establish a system for monitoring the quality and composition of the food.

Scale of Assistance

Assistance for Central or State Government Organizations

• The Central or State Government and its organizations, universities (including Government-owned deemed universities) are eligible for a grant-in-aid of the entire cost of laboratory equipment.
• The assistance of 25% of the eligible project cost will be provided for general areas and 33% for difficult areas.
• Also, they are eligible for 80% of the monthly emoluments of two technical staff for 2 years from the completion of the laboratory.

Assistance for private sector organizations

The other implementing agencies, private sector organizations, universities including deemed universities will be eligible for the grant as given below:

For General Areas

For Difficult Areas

Note: When the Ministry establishes or sponsors such as food testing laboratories, there would not be any financial assistance and the amount to be sanctioned will be decided by the Competent Authority.

Implementation of Scheme

All the proposals obtained for financial assistance are placed before Techno Scrutiny Committee (TSC) constituted by MOFPI for verifying such proposals from the technical angle. The applicant will make presentations before Techno Scrutiny Committee (TSC). The organizations will have to include formation/documents as sought by TSC.

After that, the proposals recommended by TSC from the technical angle and complete in all respects are placed before the Project Approval Committee (PAC) for consideration and approval.

Pattern of Release of Funds

Central or State Government organizations/universities (including Govt. owned deemed universities)

• 1st instalment of 40% of the total grant is released after receiving requisite documents prescribed under the scheme.
• l2nd instalment of 40% of the total grant is released after ensuring full utilization of 1st instalment of a grant towards the purchase of lab equipment, expenditure on fixing of Furniture, Fixtures for housing the equipment and Technical Civil Work (TCW).
• l3rd instalment of 20% of the total grant is released after ensuring full utilization of 2nd instalment of a grant towards the purchase of lab equipment, completion of Technical Civil Works (TCW) and fixing of Furniture and Fixtures for housing the equipment.
• l4th and final instalment comprising the payments at the rate of 80% for the two technical staff for 2 years is issued after all the approved equipment are purchased, installed and on submission of the utilization certificate for 3rd instalment along with the status of NABL accreditation.

Any other implementing agencies/private sector organizations/universities including deemed universities

• 1st instalment of 40% of the total grant is issued after ensuring that 40% of the promoter’s contribution and the remaining 40% of the term loan has been given on the project.
• 2nd instalment of another 40% of the total grant is released after ensuring utilization of the first instalment of grant and utilization of 80% of promoter’s contribution and 80% of term loan.
• 3rd and final instalment of the remaining 20% of the is released after ensuring utilization of the second instalment and utilization of 100% of promoter’s contribution and 100% of term loan.

Documents Required

The required documents are to be submitted along with the application form:

• Application in the prescribed form as given in the Annexure-I.
• Detailed project report indicating the total project cost has to be enclosed.
• Sanction letter of term loan from the financial institution (FI) or bank, if any.
• Certificate of incorporation, Memorandum of Association (MOA), Articles of Association, registration of the organization and bye-laws of the society (if any).
• Biodata of the office and promoters of the organization including details such as PAN/Voter card/Aadhar card etc.
• Certificate of SC or ST from the concerned authority, if any
• An audited statement of accounts and annual reports of the last 2 years, in case of up gradation projects with Service Tax Registration Number.
• Blueprint of the laboratory building plan
• In the case of a private organization, a copy of the land document and lease agreement with a validity period of a minimum of 15 years.
• Cost wise and Item wise details of Technical Civil Work (TCW) proposed, duly certified by Chartered Engineer (Civil).
• Cost wise and Item wise details of lab equipment proposed duly supported by quotations and duly certified by Chartered Engineer (Mechanical).
• In case of up-gradation of the lab, a list of existing lab equipment with complete details are also required to be furnished.

Application Procedure for the Scheme

To apply for Creation/Expansion of Food Testing Lab, follow the steps which are given below:

• The applicant needs to collect the application form (Annexure-I) from the Director/Deputy Secretary, Ministry of Food Processing Industries.
• Now, fill in the application form with the necessary details and submit the form to the concerned authority along with the required documents.
• On successful submission of the completed application on the Ministry’s portal, an acknowledgement number of the application will be sent on registered email IDs to the applicant for future reference.

The application form for Setting Up /Up-gradation of Food Testing Laboratory is reproduced below for quick reference.