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Setting Up/ Up-gradation of Quality control/Food testing laboratories

Development of food processing sector has necessitated the requirement of strengthening Quality Assurance and Food Testing Infrastructure. In order to assure availability of wholesome, hygienic and safe food and processed food to the consumer, compliance to the product and safety standards is basic regulatory requirement. Further, there is requirement for the food processing industry to (a) test domestic production in order to ensure that it complies with domestic standards as well as international standards for exports and (b) test imports coming into the country to ensure that they are of the requisite standard. The level of contaminants, additives, and pesticide residues in food items has to be monitored regularly. Therefore, need for a network of food testing and analysis laboratories was felt to support the Food Safety Regulatory activities and help the food processing industry in regard to quality control measures. The Scheme of setting up/ up-gradation of food testing laboratories is under implementation since 2005 and has created supporting infrastructure to assure quality of food being produced and manufactured in India, exported to other countries and also imported in India.

Pattern of Assistance

  • Government organizations are eligible for grants-in-aid of (i) entire (100%) cost of the eligible cost of the approved equipment (as per paragraph 3(a) above) and (ii) 2% of the eligible cost of the approved equipment or Rs.15.00 lakh, whichever is lower, towards Technical Civil Work (TCW) and Furniture & Fixtures (as per paragraph 3(b) above) on lump-sum basis.
  • Private organizations/ entities are eligible for grants-in-aid of (i) 50% (in General Areas)/ 70% (in Difficult Areas as well as for SC/ST applicants) of the eligible cost of the equipment (as per paragraph 3(a) above) and (ii) 2% of the eligible cost of approved equipment or Rs. 15.00 lakh, whichever is lower, towards Technical Civil Work (TCW) and Furniture & Fixtures (as per paragraph 3(b) above) on lump-sum basis.
  • When the Ministry itself establishes Food Testing Laboratories or sponsors such projects, there would be no ceiling to financial assistance and the grants-in-aid to be provided to such FTL will be decided on case to case basis with the approval of competent authority.

Implementation procedure

  1. All the proposals received for financial assistance are placed before Techno Committee (TC) constituted by MOFPI for examining such proposals from technical angle. Applicant organizations will make
    presentations before TC. The organizations will have to furnish information/documents as sought by TC.
  2. Thereafter, the proposals recommended by TC from technical angle and complete in all respects are placed before Project Approval Committee (PAC) for consideration and approval.

Pattern of Release of Funds

A. First instalment (50 % of grants-in-aid):


  1. Acceptance Letter (Annexure-VI) and compliances to its enclosures.
  2. In case of up-gradation project, status of Regulatory Recognition under Integrated Assessment specifying regulatory body(ies) for the existing parameters.
  3. In case of private PIAs, details of the three bank accounts (current) maintained separately for (a) contribution by PIA, (b) term loan from the bank and (c) grants-in-aid from the Ministry, along with the availability of fund under respective accounts. While in case of Govt PIAs, details of the two bank accounts(current) maintained separately for (a) contribution by PIA and (b) grants-in-aid from the Ministry, along with the availability of fund under respective accounts.
  4. Certificate as per Annexure-VII indicating that at least 50% of the equity and 50% of the Term Loan has been spent on the project after the date of issue of approval letter by the Ministry.
  5. Geo-tagged photographs of the project from various angles and locations.
  6. Final term loan sanction letter from the Bank.
  7. Confirmation from bank that 50% of term loan of the total sanctioned term loan has been disbursed by the Bank.
  8. Building plan/ Blue Print/ Lay-out/ photo of the building.
  9. Utilization certificate of grant availed earlier from MoFPI (if any).
  10. Copies of Bank statements giving details of payment made to the suppliers.
  11. Detailed list of approved equipment procured and installed indicating the approved cost and actual cost as per Annexure-VIII (a).
  12. Details of Technical Civil Work and Furniture and Fixture purchased/ done in the food testing laboratory as per Annexure-VIII (b).
  13. Self-attested English/ Hindi version of land document in support of land title (ownership/ registered leasehold) in the name of PIA.
    Note: In case of registered leasehold land, duration of lease should not be less than 15 years.
  14. Notarised Surety Bond in prescribed format (Annexure-IX) on non-judicial stamp paper of not less than Rs. 100/- and Annexure-IX (a), a part of Surety Bond.

Note: (a) Original copy of Surety Bond shall be submitted to the Ministry through speed post.


(b) Surety Bond is not required to be executed by the Central/ State Government Department.


xv. Compliance of any other terms & conditions mentioned in the approval letter of the Ministry.


B. Second instalment (50% of grants-in-aid):


  1. Utilization Certificate generated through EAT Module of PFMS for the grants-in-aid released as 1st instalment signed by Authorised Signatory and Chartered Accountant (by Comptroller of Accounts /CFO/FO/Chief Accountant /Accounts Officer in case of Government organizations) along with seal.
  2. Certificate as per Annexure-VII indicating that 100% of equity, 100% of the Term Loan and 100% grants-in-aid released as 1st instalment has been spent on the project after the date of issue of Approval Letter by the Ministry, as applicable.
  3. Copies of Bank statements giving details of payment made to the suppliers.
  4. The detailed Status of NABL accreditation for the facility created.
  5. Detailed list of approved equipment procured and installed indicating the approved cost, actual cost and amount utilised out of MoFPI grant as per Annexure-VIII(a).
  6. Details of Technical Civil Work and Furniture and Fixture purchased/ done in the food testing laboratory under grant-in-aid released as per Annexure-VIII(b).
  7. Geo-tagged photographs of the project from various angles and locations.
  8. Confirmation from bank that full (100%) term loan of the total sanctioned term loan has been disbursed by the Bank.
  9. Self-declaration as to completion and commercialization of the project as per Annexure-X.
  10. Compliance of any other terms & conditions mentioned in the approval letter of the Ministry.
  11. Proof of prominent display on front of the project/ vehicles stating “Project is assisted by the Ministry of Food Processing Industries, Government of India”.

Any other implementing agencies/private sector organizations/universities including deemed universities

  • 1st instalment of 40% of the total grant is issued after ensuring that 40% of the promoter’s contribution and the remaining 40% of the term loan has been given on the project.
  • 2nd instalment of another 40% of the total grant is released after ensuring utilization of the first instalment of grant and utilization of 80% of promoter’s contribution and 80% of term loan.
  • 3rd and final instalment of the remaining 20% of the is released after ensuring utilization of the second instalment and utilization of 100% of promoter’s contribution and 100% of term loan.

Documents Required

The required documents are to be submitted along with the application form:

  • Application in the prescribed form as given in the Annexure-I.
  • Detailed project report indicating the total project cost has to be enclosed.
  • Sanction letter of term loan from the financial institution (FI) or bank, if any.
  • Certificate of incorporation, Memorandum of Association (MOA), Articles of Association, registration of the organization and bye-laws of the society (if any).
  • Biodata of the office and promoters of the organization including details such as PAN/Voter card/Aadhar card etc.
  • Certificate of SC or ST from the concerned authority, if any
  • An audited statement of accounts and annual reports of the last 2 years, in case of up gradation projects with Service Tax Registration Number.
  • Blueprint of the laboratory building plan
  • In the case of a private organization, a copy of the land document and lease agreement with a validity period of a minimum of 15 years.
  • Cost wise and Item wise details of Technical Civil Work (TCW) proposed, duly certified by Chartered Engineer (Civil).
  • Cost wise and Item wise details of lab equipment proposed duly supported by quotations and duly certified by Chartered Engineer (Mechanical).
  • In case of up-gradation of the lab, a list of existing lab equipment with complete details are also required to be furnished.

Application Procedure for the Scheme

To apply for Creation/Expansion of Food Testing Lab, follow the steps which are given below:

  • The applicant needs to collect the application form (Annexure-I) from the Director/Deputy Secretary, Ministry of Food Processing Industries.
  • Now, fill in the application form with the necessary details and submit the form to the concerned authority along with the required documents.
  • On successful submission of the completed application on the Ministry’s portal, an acknowledgement number of the application will be sent on registered email IDs to the applicant for future reference.