Employment Generation under PMKSY

The Ministry of Food Processing industries (MoFPI) has been implementing Central Sector umbrella scheme Pradhan MantriKisan SAMPADA Yojana (PMKSY) for overall growth and development of food processing sector with an outlay of Rs. 6000 Crore for the period 2016-17 to 2019-20. The period has since been extended to FY 2020-21. PMKSY is expected to generate 5,30,500 direct/ indirect employments in the country. An additional new scheme “Operation Greens (OG)” was introduced in PMKSY in November, 2018 with an outlay of Rs 500 Crores.

The component schemes of PMKSY are – (i) Mega Food Park;  (ii) Integrated Cold Chain and Value Addition Infrastructure; (iii) Creation /Expansion of Food Processing & Preservation Capacities; (iv) Infrastructure for Agro-ProcessingClusters; (v) Creation of Backward & Forward linkages; (vi) Food Safety and Quality Assurance Infrastructure; (vii) Human Resource and Institutions; and   (viii) Operation Greens.

Some of the steps / policy measures to promote overall growth of food processing sector and generate employment opportunities are as follows

1. A Special Food Processing Fund of Rs. 2000 crore was set up with NABARD in November 2014 to provide affordable credit for investments in setting up Mega Food Parks as well as processing units in the MFPs. In 2019, the coverage of the fund was extended to setting up of Agro Processing Clusters and individual manufacturing units within them. Total term loan sanctioned from the Fund as on 28.02.2021 amounts to Rs 689.32 Crores.
2. As part of the Aatmanirbhar Bharat Initiative, MoFPI is implementing a Centrally Sponsored Scheme-PM Formalisation of Micro Food Processing Enterprises Scheme for providing financial, technical and business support for setting up/upgradation of 2 lakh micro food processing enterprises through credit linked subsidy during five years from 2020-21 to 2024-25 with an outlay of Rs.10,000 cr.

iii.    Food& agro-based processing units and cold chain has been included as agricultural activity under Priority Sector Lending norms in April 2015.

iv.    100% Foreign Direct Investment (FDI) under the automatic route has been permitted. Subsequently, 100% FDI was permitted under government approved route for retail trading, including through e-commerce, in respect of food products manufactured/ produced in India in 2016-17.

v.     Food Safety and Standards Authority of India (FSSAI) has allowed ingredient and additive based approvals in place of product-by-product approval.

This information was given by the Minister of State for Food Processing Industries Shri Rameswar Teli in a written reply in Lok Sabha today.

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