Agro Processing Cluster

Rapid Consulting specializes in securing a capital subsidy of up to 35% of fixed capital investment, with a maximum limit of Rs 10 Crores, for the Scheme for Creation of Infrastructure for Agro Processing Clusters, a sub-scheme of the "PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY)

About the Service

About the Service

Scheme for Creation of Infrastructure for Agro Processing Clusters (APC)


The Government of India introduced the Scheme for Creation of Infrastructure for Agro Processing Clusters (APC) under the "Pradhan Mantri Kisan Sampada Yojana (PMKSY)" aimed at developing moderninfrastructure to boost the food processing units based on a cluster approach.The initiative targets the establishment of clusters near agricultural or horticultural production areas to minimize the loss of surplus produce, enhance value addition, and thereby increase the income of farmers and create local employment opportunities.


The primary objectives of the scheme include Development of modern infrastructure for food processing close to production areas. Providing integrated and complete preservation infrastructure facilities from the farm gate to the consumer. Creating effective backward and forward linkages,connecting groups of producers/farmers to processors and markets through awell-equipped supply chain.

Quantum of Assistance :

The scheme supports the development of at leastfive food processing units within each cluster with a minimum combined investment of Rs. 25 crore.

Percentage of Subsidy :

Thegrants-in-aid are offered at 35% of the eligible project cost for projects inGeneral Areas. For projects in Difficult Areas, as well as for projectsinitiated by SC/ST, Farmer Producer Organizations (FPOs), and Self-Help Groups(SHGs), the subsidy rate is 50% of the eligible project cost.

Maximum Subsidy Limit :

Regardless of the area, the maximum subsidy thatcan be availed under this scheme is 10 crore.

Eligibility and Conditions for Subsidy :

The subsidy is applicable toprojects that aim to establish agro-processing clusters, which must include atleast five food processing units with a minimum aggregate investment of ₹ 25crore. These units benefit from the infrastructure developed under the APC scheme but their investment does not qualify for financial assistance. Theagro-processing clusters are developed with a focus on reducing wastage, adding value to agricultural produce, and creating employment opportunities.

Subsidy Disbursement Release of Funds :

Subsidies are released based on the progress and milestones achieved in the project. The grant is disbursed in three instalments tied to specific stages of project implementation,ensuring that the funds are utilized for their intended purpose.

Conditions Specific to the Utilization of Subsidy :

Funds must be used for the creation of both basic enabling infrastructure (not exceeding40% of the eligible project cost) and core infrastructure such as food testing labs, cleaning, grading, sorting, packing facilities, and specialized storage solutions.

Ineligible Expenses :

Certain expenses are explicitly excluded from subsidy calculations, suchas the cost of land, non-technical civil works, and pre-operative expenses among others.

Eligible Activities :

Eligible activities under APC include thedevelopment of basic and core infrastructure such as industrial plots, roads,drainage systems, power and water supply facilities, effluent treatment plants,and common facilities like cold storages, warehousing, and food testing laboratories. The scheme is designed to cater to the needs of the foodprocessing units that will be established within these clusters.

Implementation Period :

The scheme is part of the 15th Finance Commission cycle, indicating astructured timeline for implementation. However, specific start and end dates within this cycle are not detailed in the document.

EligibilityCriteria :

Entities eligible to set up APC projects includegovernment departments, PSUs, joint ventures, NGOs, cooperatives, self-helpgroups (SHGs), farmer producer organizations (FPOs), private sector companies,partnership firms, and proprietorship firms.

Applicationand Documentation :

Applications for the scheme must be submitted online through the Sampada Portal. Required documents includea detailed project report, term loan sanction letter from a bank, and various certifications (e.g., net worth, project appraisal). These documents are crucialfor evaluating the eligibility and feasibility of the proposed projects.

Procedure for Disbursement and Appeals :

The financial assistance is disbursed based on the project's adherence to the sanctioned plans and timely completion. The scheme details specific requirements for each stage of fund release, including the submission of progress reports, financial statements,and completion certifications. If a project faces issues, the appeal processes are outlined to address grievances and disputes.


The APC scheme under PMKSY represents a strategic initiative by the Indiangovernment to strengthen the food processing infrastructure, thereby enhancingthe value chain from farm to market. By facilitating the development ofagro-processing clusters, the scheme aims to improve the economic returns forfarmers, streamline the supply chain, and increase employment opportunities inrural areas.

Rapid Consulting could provide expert services to assist entities in setting upinfrastructure for agro-processing clusters. They could guide stakeholders,including government departments, PSUs, NGOs, cooperatives, SHGs, privatecompanies, and FPOs, through the scheme's eligibility requirements, preparingand submitting applications, and ensuring compliance with the scheme’s guidelines. This support would be aimed at maximizing financial incentives andensuring efficient project implementation.

Impact of the Scheme on Industrial Growth :

The scheme aims to enhance the agro-processing sector by developing modern infrastructures such as coldstorages, packaging facilities, and effluent treatment plants. These facilities are intended to encourage entrepreneurs to set up food processing units basedon a cluster approach, reducing the surplus produce loss, adding value toagricultural products, increasing farmer income, and creating employment.

Future Prospects and Enhancements :

Future enhancements mightinclude expanding the type and number of facilities supported under the scheme,increasing financial support limits, or broadening eligibility criteria toinclude more kinds of agro - processing initiatives. Further integration withother agricultural and industrial development programs could also provide more comprehensivesupport and accelerate sector growth.

FAQs ?

What is the Scheme for Creation of Infrastructure for Agro Processing Clusters ?

This scheme supports the establishment of agro-processing clusters that provide shared facilities to multiple food processing units to reduce logistics costs and minimize waste.

Who iseligible for this scheme ?

Government departments, PSUs, cooperatives, private sector companies, NGOs, SHGs, FPOs, and others involved in agro-processing can apply.

How does anentity apply for this scheme ?

Applications are to be submitted online through the Sampada Portal, accompanied by detailed project reports and financial statements to demonstrate compliance with the scheme's eligibility criteria.

What are the financial benefits of participating in this scheme ?

Eligible projects can receive grants covering up to 35% to 50% of the total project cost, depending on the location and the nature of the applicant entities, with a maximum grant of up to Rs. 10 crore.

What happens if incorrect information is provided in the application ?

In corrector fraudulent information may lead to cancellation of financial support, and repayment of the grants with interest may be required.?

How does Rapid Consulting assist in this process ?

Rapid Consulting ensures that applicants navigate the scheme's requirements effectively, from application to final approval and implementation, helping them to avoid common pitfalls and efficiently manage documentation and compliance requirements.

TargetSectors in India :

The Scheme for Creation ofInfrastructure for Agro Processing Clusters under the Pradhan Mantri Kisan Sampada Yojana aims to develop modern infrastructure for food processing closeto agricultural production areas. It emphasizes the development of core infrastructure in agro-processing clusters, which includes facilities like coldstorages, specialized packaging, and processing facilities, based on a clusterapproach to encourage entrepreneurs and reduce post-harvest losses.

Eligibilityfor Existing Businesses and New Ventures :

Eligibility for the scheme extends to various entities such as government departments,PSUs, NGOs, cooperatives, private companies, and farmer organizations. The applicant's net worth should be at least 1.5 times the grant sought, except inspecific cases like proposals from SC/ST applicants or from difficult areas,where the net worth requirement is equal to the grant sought.

Integrationwith Other Subsidies and Incentives :

The scheme allows integration with other governmental aids, ensuring that while leveragingadditional resources, there is no duplication of funding for the same components of the project, enhancing the effectiveness of financial support for infrastructure development in food processing.

ApplicationProcess :

Applications are to be submitted online through the Sampada Portal,accompanied by a detailed project report and other required documents likein-principle/final term loan sanction letters, net worth certificates, and proofof land ownership or lease. The process is designed to ensure that the proposed projects are thoroughly vetted and comply with the specified criteria.

Geographical Preferences in India :

Priority is given to proposalsfor setting up agro-processing clusters in regions identified by government agencies, which are based on agricultural or horticultural prominence. Thisincludes areas designated for export-oriented production and those identified under various governmental agricultural promotion schemes, ensuring a targeted and efficient development of infrastructure where it is most needed.

Why ChooseRapid Consulting ?


Our team at Rapid Consulting boasts in-depth knowledge of subsidy schemes,ensuring you get the most out of your investment.


From initial assessment to final application, wemanage the entire process, making it seamless and hassle-free for yourbusiness.

Maximized Benefits:

We ensure that you fully leverage the financial incentives available,boosting your company's growth and profitability. We offer comprehensive support throughout the subsidy acquisition process.

Initial Consultation:

We begin by understanding our clients' specific needs and objectives. Through detailed consultations, we assess eligibility criteria and determine the feasibility of the subsidy application.

Documentation Assistance:

Our team assists in preparing all necessary documentation required for the subsidy application. This includes gathering financial records, project details, investment plans, and any other relevant information needed for submission.

Application Management:

We manage the entire application process, ensuring that all documents are submitted accurately and on time. Our experts liaise with relevant government authorities and agencies to streamline the submission process.

Negotiation and Follow-up:

In case of any queries or requests for additional information from the authorities, we handle negotiations on behalf of our clients. We ensure prompt responses and provide any further documentation required.

Subsidy Disbursement:

Upon approval, we facilitate the disbursement of the subsidy amount to our clients. We ensure that all procedural formalities are completed smoothly for the timely release of funds.

Post-Subsidy Support:

Our services extend beyond subsidy acquisition. We provide ongoing support to our clients, assisting with compliance requirements, reporting obligations, and any other post-subsidy concerns.   With Rapid Consulting, clients can rely on our expertise and experience to navigate the complexities of the Scheme for Creation of Infrastructure for Agro Processing Clusters under the PRADHAN MANTRI KISAN SAMPADA YOJANA (PMKSY). We strive to maximize benefits and facilitate the growth and development of agro-processing clusters.

How to Reach Us: Visit our official website for detailed information, service offerings, and to schedule an online consultation.

Direct Contact: Call us at +91-9467248028 / 9416506136 or email info@rapidconsulting.into discuss your needs directly with our experts.

Office Visit: Our offices are open for in-person consultations at 134, RapidConsulting, First floor Below Paysam Restaurant, Near Samsung Care. Lajpat Nagar, Rajgarh Road Hisar, Haryana-125001.

Here, you can meet with our consultants who can provide personalized guidance tailored to your business's specific circumstances. Engage with Rapid Consulting today to leverage their expertise in enhancing your business's financial and operational performance through the Collateral Free Credit Guarantee Scheme and other beneficial state initiatives. Whether online, over the phone, or in person, Rapid Consulting is ready to assist you in advancing your business goals in Haryana.


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