Power Subsidy

To alleviate operational costs, the government provides subsidies to reduce power consumption expenses for enterprises.

Generator Set Subsidy

Financial assistance is available for the procurement of generator sets, ensuring uninterrupted power supply essential for continuous operations.

Stamp Duty Reimbursement

Enterprises can receive 100% reimbursement of stamp duty paid for land directly utilized in setting up manufacturing units, subject to specified monetary ceilings.

Technology Transfer and Quality Certification:

Subsidies are offered to encourage the adoption of advanced technologies and to obtain quality certifications, thereby enhancing product standards and market competitiveness.

Interest Subsidy on Working Capital Loan:

A 2% subsidy on outstanding working capital loans is provided for a period of five years from the commencement of commercial production, subject to a specified ceiling, to ease financial liquidity.

Assistance for Environmental Compliance

To promote sustainable practices, a 50% subsidy on the capital cost for setting up effluent treatment plants is available, subject to a maximum limit per unit.

Central Government Schemes

Pradhan Mantri Van Dhan Yojana (PMVDY)

Objective:

To enhance tribal incomes through value addition of Minor Forest Produce (MFP).

Support Provided

Infrastructure and Equipment:

Each Van Dhan Vikas Kendra (VDVK), typically comprising around 300 members organized into 15 SHGs, receives a grant of ₹15 lakhs for infrastructure development, procurement of tools, and equipment necessary for processing and value addition.

Training and Capacity Building:

Members are provided with training in sustainable harvesting, value addition processes, and marketing techniques to improve product quality and market reach.

Working Capital:

Financial assistance is extended to manage day-to-day operations and maintain inventory levels, ensuring smooth business functioning...Read More +

Formation and Promotion of Farmer Producer Organizations (FPOs)

Objective:

To collectivize farmers, including forest produce gatherers, to enhance their bargaining power, ensure better market access, and provide economies of scale.

Support Provided:

Financial Assistance:

Each FPO is eligible for financial support up to ₹18 lakhs over a period of three years for capacity building, administrative expenses, and business development.

Equity Grant

Matching equity grants up to ₹2,000 per farmer member, with a limit of ₹15 lakhs per FPO, are provided to strengthen the financial base of the FPOs.

Credit Guarantee Facility

To ensure credit accessibility, a credit guarantee cover up to ₹2 crores of project loan per FPO is available from eligible lending institutions...Read More +

Tax Benefits

Income Tax Exemptions

Agricultural Income

Certain income of FPOs is exempt under Section 10(1) of the Income Tax Act, 1961, as agricultural income, subject to specific conditions.

Deductions for Cooperative Societies

FPOs registered as cooperative societies may avail deductions under Section 80P of the Income Tax Act, which provides tax deductions to cooperative societies engaged in agriculture and allied activities.

Financial Support Mechanisms:

Pradhan Mantri Van Dhan Yojana (PMVDY)

Objective :To enhance tribal incomes through value addition of Minor Forest Produce (MFP).

Support :Provides training, infrastructure support, and working capital to tribal SHGs organized into VDKs. The scheme focuses on capacity building, skill development, and establishing market linkages.

Mission Organic Value Chain Development for North Eastern Region (MOVCD-NER)

Objective :To promote organic farming and develop certified organic production in a value chain mode.

Support :Offers financial assistance for organic certification, setting up processing units, and developing market linkages. FPOs can avail subsidies for infrastructure development and capacity building.

National Bank for Agriculture and Rural Development (NABARD)

Support :Provides financial assistance and credit support for the formation and strengthening of FPOs. NABARD also offers capacity-building initiatives and market linkage support.

Deendayal Antyodaya Yojana - National Rural Livelihoods Mission (DAY-NRLM)

Objective :To alleviate rural poverty through the promotion of diversified and gainful self-employment opportunities.

Support :Facilitates the formation of SHGs and their federations, providing financial assistance, capacity building, and institutional support.