The Agro Processing Cluster (APC) scheme under PMKSY is designed for groups of entrepreneurs who want to build modern, shared infrastructure and set up multiple food processing units at one location. It is one of MoFPI's most powerful tools for creating processing ecosystems.
What the APC scheme funds
APC provides grant-in-aid of 35% of the eligible project cost in general areas and 50% in Himalayan, ITDP and island regions, up to ₹10 crore per project. Funding covers basic enabling infrastructure — roads, water, power, drainage, effluent treatment — plus common processing and warehousing facilities.
The SPV model
An Agro Processing Cluster is developed by a Special Purpose Vehicle (SPV) formed by the participating units. Structuring the SPV correctly, with committed anchor units, is critical to approval. Our Agro Processing Cluster page lays out the eligibility and components in full.
Who should consider an APC
Groups of processors, FPOs, and companies with access to a suitable contiguous land parcel and multiple committed units. It pairs well with individual unit subsidies — members can separately claim the CEFPPC Unit Scheme for their own plants.
How to apply
Form the SPV → prepare a bankable cluster DPR → secure bank sanction → apply on the PMKSY portal → obtain approval → execute → claim the grant. For the wider subsidy landscape, see our MoFPI subsidy guide.
Contact us for a free assessment of your cluster project.