(The Gist of PIB) PM Formalization of Micro Food Processing Enterprises (PM FME) scheme

[July-2020]

Union Minister for Food Processing launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme as a part of “Atmanirbhar Bharat Abhiyan”.

To provide financial, technical and business support for upgradation of existing micro food processing enterprises.
The Scheme would generate total investment of Rs 35,000 crore and generate 9 lakh skilled and semi-skilled employment and benefit 8 lakh units through access to information, training, better exposure and formalization.
This Centrally Sponsored Scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
The expenditure under the scheme would 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 Centre for other UTs.

The Scheme adopts One District One Product (ODODP) approach to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
The Scheme also place focus on waste to wealth products, minor forest products and Aspirational Districts.
Existing Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit. Seed capital @ Rs. 40,000/- per SHG member would be provided for working capital and purchase of small tools.