Nestle India said that the government of India has approved its proposal towards a production linked scheme with respect to processed fruits and vegetables.
The company had submitted its proposal towards the government of India’s production linked scheme for the food processing sector under the eligible categories, i.e., ready-to-eat, ready-to-cook and processed fruits and vegetables, back in June.
Nestle said that the company has always believed that the PLI scheme for the food processing sector will help farmers and the food processing industry. Overall, it is a good step for an industry that has one of the better ratios of capital investment and employment generation.
Also, dairy firm Parag Milk Foods Ltd said its application under the Product Linked Incentive (PLI) Scheme for the mozzarella cheese segment has been approved.
In March this year, the Union Cabinet approved a PLI scheme for the food processing sector, entailing an outlay of Rs. 10,900 crores. The scheme will help create 2.5 lakh jobs, boost exports and ensure the availability of a wider range of value-added products for consumers.
Through a regulatory filing, the company said that it has “received approval of the application made under the Product Linked Incentive (PLI) Scheme – Category 1 Mozzarella Cheese Segment.”
Under its Production Linked Incentive (PLI) scheme, the Centre has approved investment proposals from 60 processed food companies, including Hindustan Unilever, Dabur, ITC, Amul, Nestle, Parle, and Britannia.In all, 91 companies had applied to the Ministry of Food Processing Industries’ invitation for Expression of Interest (EOI) in mid-2021 to avail of the scheme, under which the government will offer incentives worth Rs. 10,900 crore to the companies on the basis of their investments and sales.
The production-linked incentive scheme has been crafted to promote domestic manufacturing and would lead to the creation of large-scale manufacturing capacity besides promoting job creation in a critical sector like food processing, “said Dabur India chief executive Mohit Malhotra.