Setting up / Up-Gradation of Food Testing Laboratories

Food Safety and Quality Assurance Infrastructure (FTL) - Central Govt (MoFPI)
EoI – Deadline for filing Initial (First) Application
Sl No Particulars Remarks
01 Scheme Name Food Safety and Quality Assurance Infrastructure (FTL)
02 Who are Eligible Interested Promoters / Investors willing to set-up Infrastructure Projects in Food Processing Sector / Segment.
03 When to Apply From 10:00 AM of 09-10-2023 to 05:00 PM of 15-12-2023
04 Last Date to Apply (Cut-off Date) On or before 05:00 PM on 22-22-2023
05 Govt. Fee (Non-Refundable) Others - ₹ 20,000/-
06 Mode of Govt Fee A Demand Draft (DD) to be submitted in favour of "Pay & Accounts Officer, Ministry of Food Processing Industries, New Delhi".
07 Mandatory Condition of submission of original DD (Cut-off Date) to Ministry It should reach Ministry not later than 7 Days after Last Date of Submission of Application – 15-12-2023.

Central Food Ministry (MoFPI) - FTL - Unit Caps / Budgeting
(Food Safety and Quality Assurance Infrastructure (FTL) Subsidy)
Sl No Particulars Inputs
01 Scheme Announced on (Revised Guidelines) 08-06-2022
02 Scheme Period 2021-22 to 2025-26 (5 Years)
03 Cut-off Date - Application Submission 09-10-2023 to 15-12-2023 (68 Days)
04 Major Criteria's No Civil Work, No Machinery Purchase, No Advances to Suppliers / Contractors before Ministry Approval.
05 Minimum Approval Time required by Ministry to Sanction Project 3 Months 15 Days
06 No of Applications / Unit Cap - Entire Policy Period (2021-22 to 2025-26) 25 ICC’s with a Budget of ₹ 75 Crore for 5 years
07 Unit allocations per Year 3 Units for 2023-24
Note - There are 50-50 chances for consideration of additional Units / Proposals

Food Safety and Quality Assurance Infrastructure (FTL) - Central Govt (MoFPI)
Snapshot (Guidelines)
Sl No Particulars Inputs
01 Scheme Effective Date 08-06-2022
02 Project Location Any Location in India.
03 Subsidy Rate Central / State Govt Org
  • 100% - Equipment cost
  • 2% - Technical Civil Work and Furniture & Fixtures or
  • 15 lakh, whichever is lower
Private Org / Entities
  • 50% - Equipment cost (General) / 70% - Equipment cost (SC / ST)
  • 2% - Technical Civil Work and Furniture & Fixtures or
  • 15 lakh, whichever is lower
The eligible cost of the equipment will be as per Ministry Cost Norms or as proposed by applicant, whichever is lower.
04 Instalments 2 Equal Instalments (50% of Grants-in Aid each)
05 Submission of 1st Instalment Documents - Cut-off Date & Stage Submit documents after confirming expenditure of 50% of “Promoter Contribution (Equity) & Term loan (TL)” but within 12 months (Gen) / 15 months (SC / ST) from the date of “Ministry Approval”.
06 1st Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 1st Installment Documents.
07 Release of 1st Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 1st Instalment will be released in 1 month (approx.), subject to the availability of funds.
08 Submission of 2nd Instalment Documents - Cut-off Date & Stage Submit documents after 100% utilization of “Promoter Contribution (Equity), Term Loan (TL) & 1st Instalment Subsidy”, but within 24 months (Gen) / 30 months (SC / ST) from the date of “Ministry Approval”.
09 2nd Instalment Inspection by Govt Authority (MoFPI) / PMA Consultants Will carried out approx. in 30 days from the date of submission of 2nd Instalment Documents.
10 Release of 2nd Instalment Once submission of the Inspection Report by concerned Govt Officials / Agency, 2nd Instalment will be released in 1 month (approx.), subject to the availability of funds.
11 Subsidy Fund Utilization Subsidy will be kept in Grant-In-Aid Account and can be utilized for payments to “Vendors / Contractors” related to Project while its implementation.

Food Safety and Quality Assurance Infrastructure (FTL) - Central Govt (MoFPI)
Eligible Criteria’s
Sl No Particulars Inputs
01 FTL Definition New Set Up / Upgradation allowed
02 Land Should be in the name of Applicant. If “Lease Land”, then15 years “Lease Period” duly registered is required.
03 Term Loan (TL) TL Date should be after Expression of Interest (EoI) Date. Minimum TL Value should be 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST.
04 Equity (Own Contribution) At least 20% of Total Project Cost for General (or) 10% of Total Project Cost for NER / SC / ST.
05 Eligible Project Cost Eligible Project Cost (Testing Equipment + Technical Civil + Furniture & Fixtures Cost excluding GST Value) as per Annexure-I.
06 Restrictions One application from an entity will be considered. An entity will include all Members / Relatives of the Promoter.
07 Investment Made prior to Ministry Approval Will not be considered as “Eligible Project Cost” to calculate Subsidy Amount.
08 Refundable Bank Guarantee (BG) 5% BG on “Eligible Subsidy Amount” should execute on receipt of Ministry Approval Letter, but within 30 days from the date of Ministry Approval. BG will be released on successful implementation of Project, but after receipt of 2nd Instalment of Subsidy Amount.
09 Stage of TL Disbursement After getting Ministry Approval, Bank can disburse TL Amount. Thereafter only Purchase of Equipment / Furniture can be started / made.
10 Minimum 3 Bank Accounts 1 Current Account, 1 Term Loan Account & 1 Subsidy Account to be maintained by the Applicant.
11 Evaluation Marks As per the “Ministry Evaluation Chart,” a minimum of 60 marks for General & 45 Marks for NER / SC / ST / ITDP is required to secure / achieve to make Project Eligible.
12 Project Completion General Areas - Within 30 months (Original 24 Months + 6 Months Extension).
Difficult Areas (NER / SC / ST) - Within 36 months (Original 30 Months + 6 Months Extension) from the date of Ministry Approval including an extended period.
List of Eligible / Ineligible Components for Calculation of Subsidy

Annexure-I

I) Eligible Components

Sl No Particulars
01 Equipment - which includes the equipment essential for the testing requirement of the food and food products being produced and manufactured in the catchment area of the Food Testing Laboratory (FTL).
02 Technical Civil Work (TCW) and Furniture & Fixtures – It includes, only the component of civil work and Furniture & Fixtures essential for installation and operationalization of the equipment.

Note : It is mandatory that at the time of making an application to the Ministry for a grant in aid, the basic civil structure and building for the Food Testing Laboratory shall be ready (Finished / Semi-finished).

II) Ineligible Components
Sl No Ineligible Components
01 Compound Wall
02 Approach Road / Internal Roads
03 Cost of Land & Site Development
04 Administrative Office Building
05 Canteen
06 Labour Rest Room & Quarters for workers
07 Security / Guard Room or Enclosure
08 Non-Technical Civil Works not related to the components of the scheme
09 Margin Money, Working Capital & Contingencies
10 Fuel, Consumables, Spares & Stores
11 Transport Vehicles
12 Pre-operative expenses
13 Service Charges, Carriage & Freight Charges or other such Charges / Fees
14 Expenditure on Painting of Machinery
15 AC Ducting, Furniture, Computers & Allied Office Items
16 Closed Circuit TV Camera & Security System related Equipment
17 Consultancy Fee, Taxes, etc. on Plant & Machinery
18 Stationery Items
19 Plant & Machinery not directly related to components of the scheme
20 Fly Catchers, Hand Washer, Laundry
21 Reconditioned / Refurbished / Second Hand / Old Plant & Machinery
22 Equipment costing less than ₹ 1 lakh or otherwise not recommended by TSC (Techno-Scrutiny Committee).

Central Food Ministry (MoFPI) - Application Process Timelines
(Integrated Cold Chain & Value Addition Infrastructure (ICC) Subsidy)
Sl No Head Timelines (TAT)
01 Application - Starting Date 09-10-2023
02 Application - Submission Last Date 15-12-2023
03 Total days available for submission of Application 68 Days
04 Time required for considering the case by Technical Scrutiny Committee (TSC) by Ministry. 30 Days
05 Time required for further consideration of proposal for IMAC once TSC approved. 15 Days
06 Time required to get Approval / Sanction form Ministry after IMAC Decision. 15 Days
07 Total time required to get Approval 3 Months 15 Days

Check List (ICC) - Initial Application
Sl No Particulars
01 Detailed Project Report (DPR)
1.1 Name and Address of entity including Telephone, Fax, email and contact details
1.2 Name and Address / Location of Food Testing Laboratory including Telephone, fax, email with contact details etc.
1.3 Whether the entity belongs to SC / ST category
1.4 Type of Organization :
  • (a) In case of Govt., Central / State Government, Public sector, Autonomous, Statutory etc
  • (b) In case of Private, Joint Ventures Private Companies / Limited Liability Partnerships, Corporate Entity / Proprietorship / Partnership Entity, etc.
1.5 Background of the Entity and their Activity
1.6 Objectives of the Proposed Project
1.7 The total capacity of the laboratory in terms of number of samples to be handled by utilizing the proposed equipment
1.8 In case of up-gradation of existing lab, details of present capacity, capacity utilization, the equipment available and their utilization with products and parameters being tested, the gap proposed to be filled up in terms of meeting the demand and techno economic analysis of the proposed up gradation. This shall include performance of the lab during last two years indicating type of food products tested, parameters, with number of samples tested, revenue earned and any other relevant information.
1.9 Number of Food Processing Industries situated in the region / nearby area and other potential users who may avail testing facilities. Attach list indicating names & address of units along with their products- Annexure-V
1.10 In case of up-gradation of existing lab, details of lab equipment available and their utilization with products and parameters being tested Annexure-lV
1.11 Total Project cost:
  • i. Laboratory Equipment
  • ii. Technical civil work which includes only the constructed area required for housing the lab equipment, storage of samples/ chemicals, consumables.
  • iii. Non-technical civil work such as office area, library, roads, boundary wall, canteen, guest house etc.
  • iv. Furniture & Fixtures
  • v. Recurring Expenditure
  • a . Consumables
  • b. Salaries & Wages etc.
  • vi. Any other items
1.12 Means of Finance
  • a. Promoters Contribution
  • b. Grant from MFPI
  • C. Term Loan from bank
  • Total
  • (unsecured loan will not be considered)
1.13 Details of Equipment, TCW and Furniture and Fixture proposed to be installed in the laboratory indicating specifications, make, quantity, cost (Please furnish quotations for each proposed equipment) - Annexure II and Annexure Ill
1.14 Total no. of Technical / Professional Manpower available and to be employed (with their Qualifications and Experience)
1.15 Blueprint of the Laboratory Building Plan
1.16 Implementation Schedule - Bar Chart / Mile Stone Chart
1.17 Cash flow for the next five years / Basic Revenue Projections (5 Years)
1.18 Financial Parameters :
  • i) Internal Rate of Return (IRR) [(a) With and (b) without grant
  • ii) Avg. Debt Service Coverage Ratio (DSCR)
  • iii) Break Even Point (BEP)
  • iv) Debt-Equity Ratio (DER)
1.19
  • In case of up-gradation of lab, Proof of Regulatory Recognition under Integrated
  • Assessment specifying regulatory body (ies).
  • In case of setting up of lab, time frame by which the NABL accreditation will be obtained
1.20 Employment Generation Projections (Proposed and Existing - Direct & Indirect)(in case of up gradation)
1.21 Any other relevant details including Enclosures
02 A detailed Appraisal Note, specific to the scheme, from a Scheduled Commercial Bank.
03 Bio-data / Background / Experience of the Entity relevant to the Scheme.
04 In-Principle / Final Term Loan sanction from a Bank.
05 Certificate of Incorporation / Registration, Memorandum and Article of Association, Bye laws, Partnership Deed, TAN
06 PAN Card of Company
07 SC / ST Caste certificate (If applicable)
08 Registered Sale Deed / Lease deed (Lease Period 15 years) - English Version
09 Blueprint of the proposed Building Plan for FTL (Working Section-wise)
10 Quotations (which include ITC (HS) Code, Product Description, Quantity, Basic Cost, GST) from Original Equipment Manufacturer or its Authorised Dealer / Supplier
11 Annual reports and Audited Financial Statement of Accounts of for last two years
12 Item-wise details of proposed laboratory Equipment with specifications and cost as per Annexure - II
13 Item-wise and cost-wise details of proposed Technical Civil Work (TCW) and Furniture & Fixtures (F&F) as per Annexure - III
14 Details in Annexure-V of Food Industries in the nearby area from where business for food testing samples is targeted.
15 In case of Upgradation :
15.1 Annual reports and Audited Statement of Accounts for last two years, with Service Tax Registration Number.
15.2 A proof of Regulatory Recognition under Integrated Assessment specifying regulatory body(ies).
15.3 Food Testing business done during last 2 years along with sample size handled during same period.
15.4 List of existing equipment with complete details as per Annexure - IV
16 Proof of submission of Fee

01 All above documents must be submitted through online & Self-attested by Applicant
02 Land must be in the Name of Applicant
03 Proposal should contain an index as first page & all pages of documents must be properly numbered
Ministry of Food Processing Industries Food Testing Laboratory Division - FAQ'S
Sl No FAQ Clarification
01 From which date the period of 15 years of lease for land will be counted? The lease for land should be valid for a period of at least 15 years on the date of floating Expression of Interest i.e. 15-12-2023. In case land for the project has been taken on lease from State Government / its entities, the policy of State Government in this regard will be followed.
02 If being an entity/applicant, I have individual recognition of FSSAI and NABL each but not having integrated assessment of NABL and FSSAI, then will I be allowed to apply or not under this EOI because as per clause 6(e) of scheme guidelines dated 8-6-2022, for cases of Up gradation, entity/applicant can apply only after obtaining regulatory recognition under Integrated assessment? An applicant will be considered eligible even if it has only NABL accreditation / FSSAI recognition in case the application is for up-gradation of existing FTL. There are different marking criteria for different levels of accreditation / recognition.
03 Is there any limit in terms of kilometres for catchment area from Food testing laboratory? There is no such limit.
04 Where the DD in favor of PAO, MoFPI, shall be submitted? It needs to be sent to Under Secretary (FTL), Panchsheel Bhawan, Ministry of Food Processing Industries, New Delhi-110049.
05 Sometime the specifications of equipment given in cost norms doesn't match with the specifications of supplier? Specifications are very lengthy, they shall be restricted to make, model and purpose only, it will be beneficial for the procuring entity / applicant. Specifications and cost of each equipment have been decided after deliberation by Technical Experts. Applicants are free to apply as per their requirements and the Technical Committee constituted by the Ministry will assess the requirements of such equipment.
06 As procuring of equipment takes very long time, can we place orders for equipment before receving approval letter from MoFPI? We will ensure that the equipment will be received and installed only after obtaining approval letter from Ministry? Yes. However, grants-in-aid will be restricted to the expenditure incurred after issuance of approval letter by the Ministry, subject to fulfilling all the conditions of scheme guidelines.
07 Being an entity / applicant, can I apply for two project from different location? No. Only one application will be accepted from one entity / applicant under the scheme.
08 Being a company, can I apply under this scheme? Yes. But the company must have food testing as one of its objective in By-Laws / Memorandum of Association. After implementation of the project, such company must use all the equipment for commercial purposes and providing food testing services to food industries and shall not be a captive unit of any organisation / Food Industry.
09 We are renowned in the field of Milk products and now we want to start food testing. Are we eligible under the scheme and if yes, then under setting up or up gradation? Captive food testing laboratories are not eligible to apply. The entity must use all the equipment for commercial purposes and providing food testing services to food industries and shall not be a captive unit of any organisation / Food Industry.
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