Agriculture And Processed Foods Export Promotion Scheme Of APEDA For The 15th Finance Commission Cycle (2021-22 To 2025-26)

Please refer the URL : https://apeda.gov.in/apedawebsite/Announcements/FAS_Guidelines_05102021.pdf?v=1

The Financial Assistance Scheme (FAS) is an export promotion scheme run by APEDA. The scheme aims to facilitate the export of agri-products by providing assistance to exporters. It achieves its objective through the following: 1. Understanding the several challenges faced by agri-exporters. 2. Acknowledging the need for assistance to successfully navigate through these challenges and achieve the objectives of APEDA. Financial assistance is provided in three broad areas, namely: Development of Export Infrastructure, Quality Development, and Market Development. (i) Development of Export Infrastructure: APEDA recognizes the importance of infrastructure for the growth of agro-industries and the export of agricultural products in the value chain. The scheme component covers both fresh produce and processed food products. The objective of the scheme is to reduce losses caused due to spoilage and to ensure quality production of agro products. To achieve this, it seeks to set up post-harvest handling facilities. Under this component, assistance is provided for the following: a) Infrastructure such as packhouse facilities with packing/grading lines Pre- cooling units with cold storage and refrigerated transportation, etc. b) Cable system for handling crops like banana c) Common infrastructure facilities d) Pre-shipment treatment facilities such as irradiation, Vapour Heat Treatment (VHT), and Hot Water Dip Treatment (HWDT) for compliance with the Phyto-Sanitary requirements of importing countries Infrastructure for processing facilities (process food sector) for addressing missing gaps which may include equipment like X-ray, Screening, Sortex, filth/metal detector, sensors, vibrators or any new equipment or technology for food safety and quality requirements (ii) Quality Development: To participate/engage in international trade, it is necessary to comply with the Food Safety requirements of different countries. Several importing countries demand adherence to stringent Maximum Residue Levels (MRLs). Some of the developed importing countries have set up MRLs at a very low level. For this, high-precision equipment is required to be installed by the food testing labs. Under this component, assistance is provided to comply with the prescribed standards of importing countries. Assistance under this component covers the following: a) Installation of quality management systems, b) Laboratory testing equipment, c) Hand-held devices for capturing farm-level peripheral coordinates for traceability systems and testing of samples etc. d) Testing of water, soil, residues or pesticides, veterinary drugs, hormones, toxins, heavy metal, contaminants, etc. (iii) Market Development: This component helps exporters achieve market access in new markets and helps sustain their presence in the existing markets. It covers structured marketing strategies for the export of food products, market intelligence for making informed decisions, international exposure, skill development, capacity building, and high-quality packaging. The assistance under this component covers the following: a) Participation in International trade fairs b) Exchange of trade delegations c) Organizing buyer-seller meets d) Developing packaging standards for new products and upgrading the existing standards

1. Assistance will be applicable for all APEDA scheduled products. 2. The date of submission of the online application in APEDA shall be considered as the date of receipt of an application for grant of principal approval. The expenditure incurred prior to the date of submission of the online application in APEDA shall not be considered for assistance. However, any expenditure incurred after submission of the online application but before issuance of IPA shall not automatically become eligible for assistance and shall be subject to the final decision of APEDA taken in this regard. 3. In the case of exporters belonging to North-Eastern states, difficult areas namely Himalayan and land-locked states, Island Union Territories, SC/ST, and women beneficiaries, the assistance will be up to 75% for all activities. However, overall financial ceiling limits in all cases shall remain the same. 4. The following exporters shall be deemed to fall under the SC/ST category : a) In case of proprietary concern, the proprietor shall be SC/ST b) In the case of a partnership firm, the SC/ST partners shall be holding at least 51% shares in the unit.* c) In the case of private limited companies/Limited Liability Partnership (LLP)/Farmer Producer Companies (FPCs), at least 51% shares shall be held by SC/ST directors/promoters.* *The partner/director/promoter should hold at least 51% share in the unit for the preceding one year of application for financial assistance and the holdings of SC/ST partner/promoter/director shall remain at least 51% for the subsequent period of at least two years of reimbursement of the financial assistance. In this regard, an undertaking has to be submitted by the applicant. 5. The following exporters shall be deemed to fall under the Women Entrepreneur category a) The concern should be in existence for at least one year b) In case of a proprietary concern, the proprietor shall be the woman c) In the case of partnership firms/FPOs/FPCs/LLP/Private Limited companies, all the partners/directors/promoters shall be women. 6. For organic products, the unit should have scope for processing under the NPOP requirements. 7. APEDA shall charge processing fee as approved by the Department of Commerce (DoC), Ministry of Commerce and Industry, Government of India on the disbursed amount which is presently 5% + GST as applicable. The processing fee shall be deducted at the time of release of funds to the applicant. 8. The assistance under the Financial Assistance Scheme of APEDA is available to register exporters or other organizations such as Central/State agencies, FPOs, etc. for APEDA Scheduled Products. 9. The application should be accompanied by the following documents duly self-certified. It should be submitted physically within 30 days from the date of the online application otherwise, the application will be cancelled. 10. For purchase of new equipment, quotation/ proforma invoice/ bills should be obtained from minimum three Original Equipment Manufacturers (OEM) or their authorized distributors/ dealer of the equipment. The quotations shall be sought from a minimum of 3 suppliers. The applicant is free to place a work order at any of the three bidders however, APEDA's assistance shall be computed on the lowest quoted rate. 11. In case of a feasibility study the quotation has to be sought from the reputed consulting firms having experience of 5 years in the relevant field. 12. The quotations should clearly show the address, GSTN, TIN, and PAN, product description with detailed specifications, validity date, and item-wise cost/unit and total amount. Technical brochure/literature/Pamphlet depicting equipment details in case of infrastructure/laboratory equipment/any other assets etc. with clear mention of the utility 13. Wherever civil work is involved assistance by APEDA shall be restricted only to Technical Civil Work required for the project The cost estimate depicting the Bill of Quantity, rate/unit and total amount duly certified by a Chartered Engineer or Civil Architect shall be submitted for civil work. 14. The grant will be restricted only to the plant and machinery and technical civil work created after submission of the online application. The financial assistance towards the technical civil work component of the project shall be limited to a maximum of 25% of the total eligible financial assistance of that application. However, any expenditure incurred after submission of the online application but before issuance of IPA shall not automatically become eligible for assistance and shall be subject to final decision of APEDA taken in this regard. 15. Training program/schedule/calendar or prospectus of the institutions illustrated in the Annexure 8 shall be submitted along with the application. 16. The exporter shall submit online quarterly export performance from the assisted unit, on APEDA website even if the export is nil. 17. In-principle approval (IPA) of APEDA is required for all components of the scheme except for Lab testing charges as mentioned under sub-component 5. 18. Subsequent to the issuance of the IPA, amendments in the same can be considered at the request of the applicant but within the validity of the IPA. 19. The request for an extension of IPA may be considered by APEDA on a case-to-case basis on merits. 20. APEDA reserves the right to get the projects appraised from an outside agency. In case the project is not found viable, the application shall not be considered. The grant of In-Principle Approval shall be based on eligible items and activities only and any expenditure on ineligible items or activity shall not be considered. 21. APEDA reserves the right to intervene in the charges fixed by the agencies that do not commensurate with the services rendered to the exporters. 22. The decision of APEDA relating to the admissibility of the claim shall be final and the mere filing of the application shall not provide any right to claim financial assistance 23. Any change in ownership/management of the company shall be the responsibility of the exporter to get the same incorporated in the Registration cum Membership Certificate (RCMC) issued APEDA. 24. Reimbursement of eligible assistance from APEDA will be back-ended, upon completion and submission of the claim by the applicant in accordance with the terms and conditions of the In-Principle Approval letter issued and subsequent physical verifications by APEDA. 25. It is the responsibility of the applicant to file final claim documents complete in all respects well before the expiry of the original or extended validity, if any, of the In-Principle Approval letter. 26. If the applicant/beneficiary has more than one manufacturing unit at different locations, APEDA may consider assistance for each such separate unit. However, such units must be first incorporated into the IEC and APEDA RCMC. 27. The Budgetary allocation to APEDA is given by the Department of Commerce. The actual allocation may vary from year to year. Disbursement of assistance is subject to actual budget allocation by the Government. Financial assistance is provided subject to availability of the funds in APEDA and grants by the Government. 28. Financial assistance is provided subject to continuation of the scheme. There shall be no claim by the applicant in carrying forward the application for financial assistance beyond the plan period (2021-26) 29. The applicant has to comply with the requirement of Registration/license with the Food Safety and Standards Authority of India (FSSAI) and/or any other regulatory authorities 30. The beneficiary getting financial assistance under the Integrated pack-house, reefer van, cable car, or up-gradation of the facility should not sell his/her unit before five (5) years of disbursement of financial assistance. 31. Exporter should submit a declaration stating that no financial assistance has been availed from any state/center agency. If the application is also submitted to other state/center agencies, then details for it should be submitted in an online application. 32. APEDA reserves the right to conduct pre-inspection of the unit and/or site of the applicant before putting it up to the Technical Committee. 33. The application will be summarily rejected in case it is found incomplete, unsatisfactory pre-inspection report, and not as per the guidelines prescribed. 34. All matters of dispute arising out of the APEDA financial assistance scheme (FAS) shall be governed by Indian law and subject to Court jurisdiction in New Delhi only. Both parties shall make all efforts to resolve any dispute by way of reconciliation. In the event of any question, dispute, or difference arising under the Scheme in connection therewith remains unresolved, the same shall be referred to the Chairman, APEDA, and his decision shall be final.

I. A detailed proposal containing the company profile, nature of the project, existing infrastructure, proposed infrastructure, benefit from the proposed facility in terms of capacity increase / quality upgradation, existing and proposed process flow chart, intended market viability, etc. The cost of the project should be duly supported by Quotations (for equipment), Bills of quantity (for civil work), etc. ii. It is mandatory for the applicant to file the application online for seeking financial assistance through the Submit FAS Application in the Schemes Menu given on the APEDA website www.apeda.gov.in iii. After successful submission of the online application a Track no. shall be generated through the system. The applicant has to submit a printout of the online application submitted and a copy of the electronic acknowledgment sheet bearing application Track No. along with the above-mentioned relevant documents within 30 days from the date of the online application. Failure to do so shall result in the automatic cancellation of the online application.