Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme

Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme Latest News 

The Central Government is considering extending the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme until 2029 owing to its success. 

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 2025-26 with an outlay of Rs. 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.

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Features of PMFME Scheme

• Support to Individual / Group Category Micro Enterprises: Credit-linked capital subsidy 35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;
• Support to SHGs for seed capital: It provides seed capital of Rs. 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.

Source: NIE