Support for Value Addition – Support to R&G units in India

Support for Value Addition – Support to R&G units

The “Support for Value Addition – Support to R&G units” scheme is a crucial aspect of the broader “Integrated Coffee Development Project” initiated by the Coffee Board under the Department of Commerce, Ministry of Commerce and Industry. It targets the augmentation of coffee product quality and value addition through the adoption of enhanced technologies in roasting, grinding, and packaging. The ultimate goal is to stimulate domestic coffee consumption and foster entrepreneurship within the coffee sector, particularly in non-traditional regions.

Overview table of Support for Value Addition Scheme

Aspect	Details
Scheme Name	Support for Value Addition – Support to R&G units
Initiating Authority	Coffee Board under the Department of Commerce, Ministry of Commerce and Industry
Objective	Augmentation of coffee product quality and value addition through adoption of enhanced technologies in roasting, grinding, and packaging.
Target Beneficiaries	Entrepreneurs in the coffee sector, particularly in non-traditional regions.
Subsidy Support	– Eligible units: Roasting Units, Gourmet roasting units, and small roasting units. – Subsidy: 40% of machinery costs, capped at ₹10,00,000. For specific groups (e.g., SHGs, women entrepreneurs), subsidy increased to 50%.
Encouragement for Blends	Support for gourmet roaster units to create specialized blends in smaller quantities.
Disbursement of Subsidy	Directly to applicant’s bank account through PFMS post-installation inspection approval by the Coffee Quality Division, Coffee Board, Bengaluru.
Eligibility	– Individual units, partnership firms, SHGs, and growers’ collectives. – New R&G units with valid business licenses. – Machinery combinations eligible for subsidy specified.
Priority	First-come, first-served basis, subject to fund availability.
Exclusions	– Previous subsidy beneficiaries. – R&G units established before scheme notification date. – Up-gradation of existing facilities not covered.
Application Process	Offline procedure involving obtaining, completing, attaching mandatory documents, and submitting application form.
Post-Application Process	Scrutiny, feasibility assessment, procurement, installation, commissioning, and submission of support claim application.
Required Documents	Blueprint/layout plan, photo identity proof, tax invoices, bills, warranty certificates, lease/ownership documents, bank passbook details, photographs of newly installed machinery, relevant certificates.

Benefits

Subsidy Support:

• Roasting Units, Gourmet roasting units (1Kg to <10Kg/batch), and small roasting units (<25 kg capacity) are entitled to subsidy support.
• Eligible units can receive 40% subsidy of machinery costs, capped at ₹10,00,000.
• Specifically for SHGs, women entrepreneurs, SC/ST, Minorities, and differently-abled beneficiaries, subsidy support is increased to 50% of machinery costs with the same ceiling.

Encouraging Specialized Blends:

• Support for gourmet roaster units facilitates the creation of specialized blends in smaller quantities.
• This provision encourages new entrepreneurs and small players to venture into coffee processing, especially in non-traditional areas.

Disbursement of Subsidy

Subsidies are disbursed directly to the applicant’s bank account through PFMS (Public Financial Management System) post-installation inspection approval by the Coffee Quality Division, Coffee Board, Bengaluru.

Eligibility

• Eligible applicants include individual units, partnership firms, self-help groups (SHG), and growers’ collectives interested in establishing coffee roasting units.
• The scheme applies solely to the establishment of new R&G units, with applicants required to possess valid business licenses from relevant statutory authorities.

Components Eligible for Subsidy

• The subsidy is applicable to the following machinery combinations for new R&G units:
• Roasting machine, grinding machine, and packaging machine.
• Roasting machine and packaging machine.
• Grinding machine and packaging machine.
• However, the scheme doesn’t apply to similar machinery or multiple machinery of each type/kind.

Priority

Applications are processed on a first-come, first-served basis, subject to fund availability.

Exclusions

• Applicants who have availed subsidies in previous plan periods are ineligible.
• R&G units established before the scheme notification date (07-04-2022) are not eligible.
• The scheme does not cater to the up-gradation of existing facilities.

Support for Value Addition Scheme Application Process

Offline Procedure

1. Obtain Application Form:
   • Interested applicants must procure the prescribed application form from the designated authority. This form contains all necessary fields to be filled out by the applicant.
2. Complete Application Form:
   • Applicants are required to fill in all mandatory fields accurately. These fields typically include personal and business information, details of the proposed R&G unit, and financial particulars.
3. Attach Mandatory Documents:
   • Along with the completed application form, applicants must attach copies of all mandatory documents as specified by the scheme guidelines. These documents usually include identity proof, business licenses, lease agreements, and other relevant certificates.
4. Submit Application:
   • Once the application form is duly filled and signed, along with the attached documents, it should be submitted to the designated address. This could be the Divisional Head of the Coffee Quality Division at the Coffee Board headquarters, typically located in Bengaluru.
   • Applicants should ensure that the submission is made within the stipulated deadline to avoid any delays or complications in the processing of their application.
5. Verification and Acknowledgment:
   • Upon receiving the application, the Coffee Board initiates the verification process. This involves scrutinizing the provided information and documents to ensure compliance with the scheme’s eligibility criteria.
   • Applicants may receive an acknowledgment of their submission, which serves as confirmation that their application is under review.

Post-Application Processes

Scrutiny and Feasibility Assessment:

• Provided information undergoes scrutiny, followed by a feasibility assessment conducted by Coffee Board officers.

Procurement, Installation, and Commissioning:

• Machinery procurement, installation, and commissioning are permitted upon receiving the Feasibility Report from the Coffee Board.

Submission of Support Claim Application:

• After successful installation, applicants submit the support claim application. A physical site inspection is conducted before approval.

Required Documents

• Blueprint/layout plan for the proposed Research and Grant unit/facility.
• Photo identity proof.
• Tax invoices, bills, warranty certificates, and lease/ownership documents.
• Bank passbook details.
• Photographs of newly installed machinery.
• Relevant caste/community/disability certificates (if applicable).

The “Support for Value Addition – Support to R&G units” scheme not only fosters innovation and quality improvement in the coffee industry but also serves as a catalyst for entrepreneurial growth, particularly in underdeveloped coffee-drinking regions.

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