PM Formalization of Micro Food Processing Enterprises(PM FME) Scheme – USPC Prelims

Ministry/Department :  Ministry of Food Processing Industries
Aims :
  • To modernize and enhance the competitiveness of the existing individual micro enterprises and ensure their transition to formal sector
  • To provide support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain.
  • PM-FME Scheme: It is a centrally sponsored scheme launched by the Ministry of Food Processing Industries(MOFPI).
  • Duration: The scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
  • Funding: The expenditure under the scheme would 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.
  • Coverage: Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit linked subsidy. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate growth of the sector.
Key Features:
  • One District One Product (ODOP) Approach: The States would identify food products for districts keeping in view the existing clusters and availability of raw material.
  • Other Focus Areas: The scheme would also focus on Waste to wealth products, minor forest products and Aspirational Districts.
  • Financial Support:
    • Existing micro food processing units can avail credit-linked capital subsidy at 35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
    • Seed capital at Rs.40,000/- per SHG member would be provided for working capital and purchase of small tools.
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