About Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme:
- It was launched on 29 June 2020.
- It is a Centrally Sponsored Scheme that focuses on the growth and formalisation of micro food units across the country.
- The scheme is part of the Atmanirbhar Bharat Abhiyaan and supports the Vocal for Local vision in the food processing sector.
- It provides financial, technical and business assistance to entrepreneurs for setting up new units or upgrading existing ones.
- Financial Outlay& Time Period:
- The scheme runs from 2020-21 to 2025-26with an outlay of 10,000 crores.
- The expenditure under the scheme is to be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by the Center for other UTs.
- Features of PMFME Scheme:
- Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling 10 lakh per unit;
- Support to SHGs for seed capital: It provides seed capital of 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools subject to maximum of Rs. 4 lakh per SHG Federation.
- Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure.
- Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.
- Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.
