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;

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).
01Where will the money come from?
Total cost ₹14.7 lakh
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)
net profit ~7% of sales · payback ~1.5 years · Includes interest, depreciation and a 5% yearly rise in costs.
035 steps to start
- Get trainedLearn the work, find buyers
- Prepare the siteShed/room, power, water
- Get a DPR madeProject report as the bank needs it
- Apply for loan + subsidy35% subsidy, max ₹10 lakh (PMFME)
- Produce and sellIncome starts from year 1
04Who is it right for?
053 mistakes that cause losses
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?
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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 86250 77758