Breadcrumb

Scheme for Food & Agro-Based Units and Startups (FABUS)

Scheme for Food & Agro-Based Units and Startups (FABUS)

Features & Benefits

India's Food and Agro-based industry holds immense potential due to its vast agricultural resources and diversity. This sector includes activities such as food processing, dairy, meat processing, and other Agro-allied based processing. With increasing urbanization and changing consumer preferences, there is a growing demand for processed and packaged foods, creating significant opportunities for growth. This Scheme aims to provide comprehensive financial support to Food and Agro-based units, as well as agricultural startups, through term loans and working capital facilities.

 

PSL Scheme Guidelines

PSL Master directions on Priority sector lending issued by RBI has provided an indicative list of eligible processing activities related to Food and Agro-based units and startups. Credit sanctioned to these activities can be classified under the Agri-ancillary sector as per the following master directions on PSL:

  • Loans to Food and Agri processing: Loans up to an aggregate sanctioned limit of Rs.100 Crore per borrower from banking system can be classified under PSL Agri Ancillary services.
  • Agri Startups: Loans up to Rs.50 Crore to startups, as per definition of Ministry of Commerce and Industry, GOI, that are engaged in Agriculture and Allied sector can also classified under PSL Agri Ancillary services.

 

Eligibility

All Legal entities (excluding NRIs) - Resident individual farmers, Partnership firms, Limited Companies, Corporates, & Startups engaged in Food and Agro processing related to Agriculture & Allied sectors.

 

Purpose/ Objectives

New & existing Food & Agro based primary processing units and startups engaged in Agriculture and Allied services can avail this facility.

  • For purchase of new machinery/ equipment used for processing of agri produce, expansion of Agro processing unit and startups.
  • For construction/renovation of building for Agro processing units.
  • To meet the working capital requirements of Processing units and startups.
  • Establishment of start-up units engaged in Agriculture.

 

Terms & Conditions

Quantum of Finance & Assessment

  • Term Loan: Maximum Term Loan is 75% of the project cost.
  • Working Capital: Eligible limit with 25% margin.

 

Period

  • AMTL: Up to 84 Months (Including up to 12 months of moratorium period).
  • ALTL: Up to 120 Months (Including up to 12 months of moratorium period).
  • CC: 12 Months

 

Repayment

  • Principal - Monthly/Quarterly/Half yearly instalments depending upon cash flow. Graded instalments are also allowed.
  • Interest – Monthly

 

Repayment holiday

  • 12 Months on principal amount.
     

Primary Security

  • Hypothecation of Assets Created out of loan.
  • Mortgage of landed property where the proposed project considered for finance is constructed.

 

Collateral Security 

  • The facilities under the scheme should have collateral coverage of 150%.

 

Permissible Activities 

  1. Cleaning, Air Cooling (Field Heat Removal), Sorting, Grading/Sizing, Packaging, Warehousing, Distribution of Fruits & Vegetables etc.
  2. Transportation including refrigerated van/Cold Chain infrastructure system Packaging and storage including techniques like Silo, Hermetic storage; pest management.
  3. Storage at low temperature/Cold Storage/Modified/Controlled Atmosphere packaging, Refrigeration/Chilling etc.
  4. Primary and/or Minimal Processing of F&V: - Blanching (Vegetables), Peeling, Cutting, Storage, Distribution at Low temperature, vacuum packaging etc.
  5. Sun Drying and Mechanical Drying: - Solar Drying, Hot air drying, Dehydration, hybrid drying, fluidized bed drying, refractive window drying, drum drying, radio frequency drying, Lyophilization (Freeze Drying), Vacuum Drying, Spray Drying, De-hydro-freezing etc.
  6. Preservation through various methods; both traditional and modern.
  7. Frozen Products: Individually Quick Frozen (10F) of Fruit, Vegetables, Meat, Fish, Sea Foods etc.
  8. Milk and Milk products processing, including their transportation, packaging, and storage.
  9. Canning of Fruit, Vegetables including Mushrooms, Meat, Fish, crustaceans, molluscs, other Sea Foods etc.
  10. Milling Grains, Legumes & Pulses, Preparation of their by-products such as Bran Oil, Cattle Feed/Poultry feed etc.
  11. Processing of F&V into different products such as juices, concentrates, sauces, jam, jellies, marmalades, Chips, Flakes, Powders etc.
  12. Processing of Grains & Pulses, Fish, Meat, Poultry, Sea Foods, Egg etc. into their different products including extruded, popped, puffed and flaked products and their packaging and storage including fumigation, Smoking etc.
  13. Oil seed Extraction- Rendering, Pressing, Hydrogenation, Refining with Extraction, Filling/packaging etc.
  14. Spices, Seasoning and Condiments - Grinding, Crushing, Milling, Sieving, Mixing, Blending, Roasting, Packaging, Storage, Distribution.
  15. Production of fermented Products and Alcoholic- Wines, Vinegar, Milk products, Prebiotics, Probiotics etc.
  16. Production of beverages - Juices, RTS, Nectar, Squash, Cordial, Syrups/Sherbets, Soups, Carbonated Beverages etc.
  17. Production of Cocoa, Coffee, Chicory and Tea Products; including Cocoa Butter, Cocoa Powder, Chocolates, wafers etc.
  18. Production of Bakery and Confectionary Products - Biscuits, Bread, Cakes, Cookies, Toffee etc.
  19. Production of Jaggery, Sugar, Khandasari etc from Sugarcane, Beet, Palm etc.
  20. Production of apiary products (honey processing; both natural and artificial honey).
  21. Production of Starch and Starch Products - Sago, Tapioca, Corn, Noodles, Macroni, Vermicelli etc.,
  22. Slaughtering of animals/ruminants/birds etc. and their processing.
  23. Nuts Processing: coconut-based product processing such as water, nuts etc.
  24. Processing of other products such as Instant Mixes, Ready to Eat (RTE) retort-based products, ready to cook and Beverages etc.
  25. Nutraceutical products/functional Foods/fortified Food/enriched Food preparation.
  26. Production of Organic feed ducts.
  27. Processing of algal and fungal products (eg. Spirulina, Mushrooms etc.), including packaging and enhancement of shelf life.
  28. Processing plantation crops, packaging, storage, and enhancement of shelf life.
  29. Production of Food grade packaging material such as laminates, tetra packs, bottles, tin containers etc.

Interest Rates & Charges

Please visit the rates and charges page for details

Get a Call Back