If you are setting up or expanding a food processing unit in India, the Creation / Expansion of Food Processing & Preservation Capacities (CEFPPC) scheme — commonly called the "Unit Scheme" under PMKSY — is usually the single most relevant subsidy. It was re-notified with updated guidelines in January 2025 and now supports units both inside and outside food parks.
What CEFPPC offers
The scheme provides grant-in-aid of 35% of the eligible project cost in general areas and 50% in difficult areas, up to a maximum of ₹5 crore per project. Eligible cost typically covers plant & machinery and technical civil work for the processing line. Because it is credit-linked, a sanctioned bank term loan is required.
Which sectors are eligible
CEFPPC covers a broad range — fruits & vegetables, milk and dairy, meat, ready meals and snacks, and other processing and preservation activities that add value and extend shelf life. Whether you are canning fruit, setting up a dairy line, or building a snack unit, the scheme likely applies.
Who can apply
Registered entities — companies, LLPs, FPOs, cooperatives and SHGs (and firms as per guidelines) — with land ownership or a long-term lease and the required statutory approvals. See the full eligibility, eligible components and document checklist on our CEFPPC / Unit Scheme page.
Why the DPR decides the outcome
Most CEFPPC rejections come down to a weak or wrongly-costed Detailed Project Report. Eligible-cost justification, realistic financial projections and correct machinery specification are what get a project sanctioned. This is exactly where a specialist consultant earns their fee.
How to apply
The path is: assess feasibility → prepare a bankable DPR → secure bank sanction → apply on the PMKSY (SAMPADA) portal → obtain approval → implement → claim the grant. For the step-by-step version and eligible components, read the CEFPPC scheme guide, and for the wider picture see our MoFPI subsidy guide.
Ready to check your eligibility? Talk to our team for a free assessment.