The ‘Support for Value Addition – Support to R&G Units’ scheme is a part of the Integrated Coffee Development Project by the Coffee Board, under the Ministry of Commerce and Industry. The scheme aims to enhance coffee quality and value addition by supporting new roasting and grinding (R&G) units through subsidies.
Key Benefits
- Financial assistance of 40% of the machinery cost (up to ₹10 lakh) for eligible roasting units.
- Special subsidy of 50% of the machinery cost (up to ₹10 lakh) for Self-Help Groups (SHGs), women entrepreneurs, Scheduled Castes (SC), Scheduled Tribes (ST), minorities, and differently-abled beneficiaries.
- Encourages entrepreneurship in non-traditional coffee-drinking areas by supporting small and gourmet roaster units.
- Funds are disbursed directly to the applicant’s bank account after verification and approval.
Eligibility Criteria
To apply for this subsidy, the applicant must:
- Be an individual unit, partnership firm, self-help group (SHG), or growers’ collective interested in setting up a coffee roasting unit.
- Establish a new R&G unit (existing units are not eligible for upgrades under this scheme).
- Hold a valid business license from the respective authorities.
Eligible Machinery for Subsidy
Applicants can claim a subsidy for the following machinery combinations:
- Roasting, Grinding, and Packaging Machines
- Roasting and Packaging Machines
- Grinding and Packaging Machines
Note: The scheme does not support subsidies for more than one machine of each type.
How to Apply
The application process for this scheme is offline. Follow these steps:
Step 1: Download and Fill the Application Form
- Print and fill the prescribed application form.
- Attach a passport-sized photograph and self-attested mandatory documents.
Step 2: Submit the Application
- Send the completed form along with required documents to The Divisional Head – Coffee Quality Division, Coffee Board, Bengaluru via email or postal mail.
Step 3: Verification & Feasibility Check
- Coffee Board officials will conduct a physical inspection and feasibility assessment.
Step 4: Procurement & Installation
- After receiving feasibility approval, applicants can procure and install machinery.
Step 5: Submit Support Claim
- After successful installation, submit a support claim application for subsidy disbursement.
- A final inspection will be conducted before approval.
Documents Required
Applicants must submit:
- Blueprint/layout plan of the R&G unit.
- Identity proof (Aadhaar, PAN, Passport, Driving License, etc.).
- Tax invoices, freight & installation bills.
- Copy of license from municipal authorities.
- Bank passbook copy (showing account details and IFSC code).
- Photographs of installed machinery.
- Caste/Community/Disability Certificate (if applicable).
Frequently Asked Questions (FAQs)
1. Is there a subsidy limit for different roasting unit capacities?
Yes, the subsidy is capped at ₹10 lakh per unit, with 40% support for general applicants and 50% for SC/ST, minorities, women entrepreneurs, and SHGs.
2. Can existing coffee roasting units upgrade their facilities under this scheme?
No, this scheme is only for the establishment of new R&G units, not for upgrading existing ones.
3. How are applications prioritized?
Applications are reviewed on a first-come, first-served basis, subject to fund availability.
4. How is the subsidy amount disbursed?
The subsidy is directly transferred to the applicant’s bank account after approval of the post-installation inspection report.
5. Can applicants start purchasing and installing machinery before receiving feasibility approval?
No, applicants must first receive a feasibility report from the Coffee Board before procuring machinery.
6. Can R&G units established before April 7, 2022, avail this scheme?
No, units established before the scheme notification date (April 7, 2022) are not eligible.
7. What can lead to an application being rejected?
- Incomplete application forms or missing documents.
- Installation of machinery before approval.
- Bribery or coercion in the application process.
- False information provided by the applicant.
This scheme provides a valuable opportunity for entrepreneurs looking to enter the coffee roasting industry. By supporting small and specialized roasting units, it encourages innovation and growth in India’s coffee sector. Interested applicants should carefully review the eligibility criteria and follow the application process to ensure successful participation.
