Production Linked Incentive (PLI) Scheme for Food Processing Industry

Background:

• The food processing sector in India encompasses manufacturing enterprises in all the segments from micro to large industries.
• India is having competitive advantage in terms of resource endowment, large domestic market and scope for promoting value added products.
• Achieving full potential of this sector would require Indian companies to improve their competitive strength vis-a-vis their global counterpart in term of scale of output, productivity, value addition and their linkages with the global value chain.

About the PLI Scheme

• The Production Linked Incentive Scheme for Food Processing Industry has been formulated based on the Production Linked incentive scheme of NITl Aayog under "AatmaNirbhar Bharat Abhiyaan for Enhancing India's Manufacturing Capabilities and Enhancing Exports".
• The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the Central Sector Scheme - "Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)" to support creation of global food manufacturing champions commensurate with India's natural resource endowment and support Indian brands of food products in the international markets with an outlay of Rs. 10900 crore.

Objectives of the Scheme:

The objectives of the Scheme are to support food manufacturing entities with stipulated minimum Sales and willing to make minimum stipulated investment for expansion of processing capacity and Branding abroad to incentivise emergence of strong Indian brands:

1. Support creation of global food manufacturing champions;
2. Strengthen select Indian brand of food products for global visibility and wider acceptance in the international markets;
3. Increase employment opportunities of off-farm jobs,
4. Ensuring remunerative prices of farm produce and higher income to farmers.

Salient features:

1. The first component relates to incentivising manufacturing of four major food product segments viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.
2. Innovative/ Organic products of SMEs including Free Range -Eggs, Poultry Meat, Egg Products in these segments are also covered under above component.
3. The selected applicant will be required to undertake investment, as   quoted   in   their  Application   (Subject   to   the   prescribed minimum) in Plant & Machinery in the first two years i.e.  in 2021-22 & 2022-23.
4. Investment made in 2020-21 also to be counted for meeting the mandated investment.
5. The conditions of stipulated Minimum Sales and mandated investment will not be applicable for entities selected for making innovative/ organic products.
6. The second component relates to support for branding and marketing abroad to incentivise emergence of strong Indian brands.
7. For promotion of Indian Brand abroad, the scheme envisages grant to the applicant entities for - in store  Branding,  shelf space renting and marketing.
8. Scheme will be implemented over a six year period from 2021-22 to 2026-27.
9. The scheme will be rolled out on All India basis.
10. The scheme shall be implemented through a Project Management Agency (PMA).

New irrigation techniques - PMKSY

Background

• Water resources development & management are planned, funded, executed and maintained by the State Governments (PT Pointer) themselves as per their own resources and priorities.
• In order to supplement the efforts of the State Governments, Government of India provides technical and financial assistance to State Governments to encourage sustainable development and efficient management of water resources through various schemes and programmes.

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)

• PMKSY was launched during 2015-16 by the Central Government with the following components, Accelerated Irrigation Benefits Programme (AIBP), Har Khet Ko Pani (HKKP), Per Drop More Crop (PDMC) and Watershed Development (WD).
• PMKSY is strategize by focusing on end-to end solution in irrigation supply chain, viz. water sources, distribution network, efficient farm level applications, extension services on new technologies & information etc.
• Funding mechanism has been approved by the Government for providing Central and State Share under Long Term Irrigation Fund (LTIF) through NABARD.
• PMKSY focuses on irrigation techniques by, among others,

1. Promoting efficient water conveyance and field application devices within the farm viz, underground piping system, Drip & Sprinklers, pivots, rain-guns and other application devices etc.;
2. Promotion of scientific moisture conservation and run off control measures to improve ground water recharge so as to create opportunities for farmer to access recharged water through shallow tube/dug wells,
3. Creation of new water sources;
4. repair, restoration and renovation of defunct water sources;
5. construction of water harvesting structures, secondary & micro storage, groundwater development, enhancing potentials of traditional water bodies at village level.
6. Use of Underground Pipelines (UGPL) in the Distribution Network of the projects has been actively promoted for increasing the water conveyance efficiency and overcoming the issues related to Land Acquisition, evaporative/ percolation losses etc.

• Department of Agriculture, Cooperation & Farmers’ Welfare is implementing Per Drop More Crop component of PMKSY.
• It mainly focuses on water use efficiency at farm level through precision/micro irrigation.
• Besides promoting precision irrigation (Drip and Sprinkler Irrigation System) and better on-farm water management practices to optimize the use of available water resources, this component also supports micro level water storage or water conservation/management activities to supplement micro irrigation.

Command Area Development and Water Management (CADWM)    

• The HKKP- Command Area Development and Water Management (CADWM) program has been taken up with objectives of

1. utilize Irrigation Potential Created (IPC) under the project soon after its creation;
2. improve water use efficiency;
3. increase agricultural productivity & production; and
4. bring sustainability in the irrigated agriculture in a participatory environment.

• Under CADWM Scheme, States are also encouraged to use the underground pipeline network instead of conventional field channels.
• The implementation of Participatory Irrigation Management (PIM) is also being promoted through CADWM.

Other Schemes

• The Surface Minor Irrigation (SMI) and Repair, Renovation and Restoration (RRR) of Water Bodies schemes have multiple objectives like expanding cultivable area under assured irrigation, improving water use efficiency, ground water recharge, improvement and restoration of water bodies thereby increasing the tank storage capacity and revival of lost irrigation potential, increased availability of drinking water, improvement of catchment of tank commands etc.
• Central Ground Water Board is implementing innovative schemes for Aquifer Rejuvenation under ‘Ground Water Management and Regulation’ scheme in select overexploited blocks of the Aspirational districts on pilot basis.
• Water Harvesting and Recharge Augmentation are completed as a pilot project through construction of Bridge cum Bhandaras in districts of Wardha and Amravathi in Maharashtra. 
• Further, a joint Action Plan has been prepared with the Ministry of Rural development for effective implementation of water conservation and artificial recharge structures in convergence with Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS).
• Ground Water Irrigation component of PMKSY-HKKP

1. It aims to provide financial assistance to States to provide assured ground water irrigation for small and marginal farmers, in rain-fed areas.
2. Schemes is applicable only in areas having stage of ground water development less than 60%, average rainfall more than 750 mm rainfall and with shallow ground water levels (less than 15 m bgl).
3. The scheme is effectively launched in 2019-20, after revision of operational guidelines of the scheme.

• National Water Mission (NWM) has taken up Jal Shakti Abhiyan:

1. Catch the Rain and Sahi Fasal campaigns for water conservation. “Jal Shakti Abhiyan: Catch the Rain” is under implementation in all districts, rural as well as urban areas, of the country with the main theme “Catch the Rain, where it falls, when it falls”.
2. The period of the campaign is from 22nd March, 2021 to 30th November, 2021 – the pre-monsoon and monsoon period in the country.
3. ‘Sahi Fasal’ campaign was launched by NWM on 14.11.2019 to nudge farmers in the water stressed areas to grow crops which are not water intensive, but use water very efficiently; and are economically remunerative; are healthy and nutritious; suited to the agro-climatic- hydro characteristics of the area; and are environmentally friendly.