Chilli Powder Unit for ₹14.7 lakh: Cost & Subsidy (2026)

As per the government model report, the basic Chilli Powder Unit (400 kg/day) costs ₹14.7 lakh. A plant to grind and pack dry red chillies. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹3.5 lakh support;

 · 4 min read

Chilli Powder Unit for ₹14.7 lakh, about ₹3.5 lakh subsidy
Chilli Powder Unit · Basic unit
₹14.7 lakhto start
400 kg/dayCapacity
35%Subsidy
~1.5 yrsPayback
In 60 words

As per the government model report, the basic Chilli Powder Unit (400 kg/day) costs ₹14.7 lakh. A plant to grind and pack dry red chillies. 35% subsidy, max ₹10 lakh (PMFME) — up to ₹3.5 lakh support; your share is about ₹1.47 lakh. In year 3, sales are about ₹90.9 lakh with net profit ~7% of sales (estimate).

Source: NIFTEM – Chilli powder DPR · Utkrishi Team · 01-10-2026

01Where will the money come from?

Total cost ₹14.7 lakh

₹1.47 lakhYour share10%
₹9.74 lakhBank loan66%
₹3.5 lakhSubsidy24%

From your pocket only ₹1.47 lakh — the subsidy is credited to your loan account.

What does the money go into?

  • Machinery₹7.2 lakh
  • Other/remaining cost₹2.8 lakh
  • Working capital₹4.71 lakh

02Income over 5 years

Yearly sales (blue bar) · Net profit (green)

Year 1
₹73.5 lakh
Profit ₹1.65 lakh
Year 2
₹82 lakh
Profit ₹3.67 lakh
Year 3
₹90.9 lakh
Profit ₹5.97 lakh
Year 4
₹1 crore
Profit ₹8.39 lakh
Year 5
₹1.1 crore
Profit ₹10.9 lakh

net profit ~7% of sales · payback ~1.5 years · Includes interest, depreciation and a 5% yearly rise in costs.

035 steps to start

  1. Get trainedLearn the work, find buyers
  2. Prepare the siteShed/room, power, water
  3. Get a DPR madeProject report as the bank needs it
  4. Apply for loan + subsidy35% subsidy, max ₹10 lakh (PMFME)
  5. Produce and sellIncome starts from year 1
Watch the video: Chilli Powder Unit
Watch on YouTube @utkrishi

04Who is it right for?

Chilli farmers and FPOs
New entrepreneurs with a rented shed
People building a local brand

053 mistakes that cause losses

Not tracking raw chilli pricesthe margin is only ~7%
Selling without FSSAI and colour/adulteration tests
Ignoring packing and branding

06Frequently asked questions

What licences does a chilli powder unit need?

Udyam registration and an FSSAI licence; labelling rules apply if you sell under a brand.

What government support is there for the Chilli Powder Unit?

35% of eligible cost (machinery, technical civil work), max ₹10 lakh; linked to a bank loan, not on working capital.

How much can the Chilli Powder Unit earn?

In the government model, year-3 sales are about ₹90.9 lakh with net profit ~7% of sales; payback ~1.5 years.

Chilli Powder Unit — Want to start?

Tell us your district and budget — an expert will suggest the next step for free.

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Source: NIFTEM – Chilli powder DPR · PIB – PMFME
Last checked: 01-10-2026. Figures are based on government model reports and are indicative; get fresh quotes and local prices before the DPR. The bank decides the loan/subsidy — we help you prepare. Depends on the scheme continuing.

Utkrishi Team

Utkrishi – एग्री बिज़नेस, DPR, सब्सिडी और बैंक लोन में मदद। +91 90961 12806