Pradhan Mantri Kisan Sampada Yojana: Eligibility & Benefits

In 2017, the Cabinet Committee on Economic Affairs (CCEA) approved the central sector scheme SAMPADA (Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters). Later, the Government renamed this scheme into "Pradhan Mantri Kisan Sampada Yojana (PMKSY)", which is implemented by the Ministry of Food Processing Industries (MoFPI). This piece talks about every important detail regarding the Pradhan Mantri Kisan Sampada Yojana. Read along!

Pradhan Mantri Kisan Sampada Yojana simultaneously focuses on building advanced infrastructure along with effective supply chain management that will cover both farm gate and retail outlets.

There are 7 schemes under the PM Kisan Sampada Yojana. These are as follows,

1. Mega Food Parks (Status-On Going)

This scheme aims to ensure advanced infrastructure) facilities for the food processing and the value chain from farm to market.

2. Food Safety and Quality Assurance Infrastructure (Status-On Going)

This scheme aims to create a surveillance system to monitor the quality and composition of food. 

3. Human Resources and Institutions (Status-On Going)

This scheme aims to benefit the food processing sector by utilising the end product or result of R&D. 

4. Integrated Cold Chain and Value Addition Infrastructure (Status-On Going)

This scheme offers integrated preservation infrastructure along with cold chain facilities from the farm to the customers.

5. Infrastructure for Agro-processing Clusters (Status-New)

This scheme builds advanced infrastructure and common facilities and gives support to entrepreneurs for setting up food processing units.

6. Creation/Expansion of Food Processing & Preservation Capacities (Status-New)

This scheme creates processing and preservation capacities and focuses on the modernisation or expansion of existing food processing units. Thus, it can enhance the level of processing and value addition which in turn can reduce wastage.

7. Creation of Backward and Forward Linkages (Status-New)

Primarily this scheme aims in creating efficient forward and backward linkages for the perishable Agri-Horti produce. This purpose can be achieved by setting up processing centres or collection centres at the farm gate, retail outlets and distribution areas at the front end.

Following is a list of various eligibility criteria set for different schemes under the Pradhan Mantri Kisan Sampada Yojana.

1. Mega Food Parks

• The sum of the total net worth of the SPV promoters/shareholders must not be below ₹ 50 crores.
• SPV must bring 20% of the project cost as equity in general areas and 10% in Hill and Island and difficult regions.
• Net worth of each promoter/shareholder of the SPV must not be below ₹ 1.5 times his / her proposed equity contribution.
• Minimum Land Area- 50 Acres for 75 years.
• An anchor investor in the SPV must establish a food processing unit with an investment of a minimum of ₹ 10 crore.
• FP Units needs to be set up 25 to 30 (grant under Unit Scheme is available for this).

2. Food Safety and Quality Assurance Infrastructure

• Food Testing Laboratory Scheme: Central/State Government and its organisations/private sector organisations/deemed universities/universities.
• HACCP/ ISO Standards/Food Safety/Quality Management Systems: Central or State Government Organisation, Universities and private sector in the field of food processing sector, IITs.

3. Human Resources and Institutions

All Universities, Central or State Government Institutions, IITs, R&D laboratories and CSIR recognised R&D units in the private sector, Government-funded Organisations.

4. Integrated Cold Chain and Value Addition Infrastructure

• Central and State PSUs/FPOs/NGOs/Joint Ventures/Cooperatives/SHG’s/Proprietorship firms/Corporate entities.
• Date of Commercial Operation must not be before the date of application.
• Term loan must be a minimum of 20% of the total project cost.
• Sum of the total net worth of promoters/ proposed shareholders must not cross the threshold of 1.5 times the grant sought.

5. Infrastructure for Agro-processing Clusters

• Central and State PSUs/FPOs/SHG’s/FPCs/Joint Ventures/NGOs/Cooperatives/Partnership firms/Corporate entity/Proprietorship firms, etc.
• Only a single agro-processing cluster will get a sanction in a district.
• The Agro Processing Cluster and CPC of Mega Food Park must not be located in the same district.

6. Creation/Expansion of Food Processing & Preservation Capacities

• Central and State PSUs/FPOs/SHG’s/NGOs/Joint Ventures/Cooperatives/Corporate entity/Proprietorship firms.
• Promoter’s equity must be below 20 % of Project Cost in general areas and 10% in NER and Difficult Areas (not applicable for Government proposals).
• Date of commercial production must not be the date of submission of the application.
• Minimum eligible projects cost more than (a) ₹ 3 crores (for the general area) and (b) ₹ 1 crore (for North East states).
• The term loan must be a minimum of 20% of the total project cost. Here, the sanction of term loan must be before the date of advertisement of EoI.

7. Creation of Backward and Forward Linkages

• Central and State PSUs/joint ventures/proprietorship firms/NGOs/farmer producers organisation (FPOs)/cooperatives/SHGs/limited liability partnerships, corporate entities/ public and private companies/partnership firms etc.

From the above discussion, individuals can learn about the eligible organisation and conditions of 7 different schemes operational under the Pradhan Mantri Kisan Sampada Yojana. Now, let’s focus on the benefits of this scheme.

The benefits of Pradhan Mantri Kisan Sampada Yojana are as follows,

• The operational projects under Pradhan Mantri Kisan Sampada Yojana will generate employment (direct/indirect) opportunities and give special focus to rural areas.
• This umbrella scheme will create advanced infrastructure with supply chain management from farms to retail outlets.
• This scheme will provide the food processing sector with the necessary boost and ensure decent returns to farmers.
• The introduction of Pradhan Mantri Kisan Sampada Yojana will be able to increase farmers’ income, generate employment opportunities in rural areas and improve processing levels. Additionally, this umbrella scheme will enhance the export business of processed foods and decrease the waste produced during agricultural processing.

The Government’s effort to introduce various schemes under the umbrella project/scheme of Pradhan Mantri Kisan Sampada Yojana will surely boost the food processing sector of India. The Government will achieve this ambition by providing a supplement to agriculture, reducing agri-waste and modernising infrastructure.