Ministry of Food Processing Industries (MoFPI), in partnership with the States, has launched an all India centrally sponsored "PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme)" for providing Financial, technical and business support for upgradation of existing micro food processing enterprises.
The objectives of the scheme are :
(i) Support for capital investment for upgradation and formalization with registration for GST, FSSAI hygiene standards and Udyog Aadhar;
(ii) Capacity building through skill training, imparting technical knowledge on food safety, standards & hygiene and quality improvement;
(iii) Hand holding support for preparation of DPR, availing bank loan and upgradation;
(iv) Support to Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), producers cooperatives for capital investment, common infrastructure and support branding and marketing.
- Units 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. The beneciar y contribution should be minimum 10% and the balance should be loan from a Bank.
- Support to FPOs / SHGs / Cooperatives The scheme would provide support t o F P O s/ S H G s/ P r o d u c e r Cooperatives for capital investment along the entire value chain with credit linked grant @ 35%. Seed Capital to SHG Seed capital @ Rs. 40,000/- per SHG member would be provided to those engaged in food processing for working capital and purchase of small tools. Seed capital as grant would be provided to the SHG federation which, in turn, would be extended to members as loan through the SHGs.
- Common Infrastructure Credit linked grant @35% would be provided to FPOs, SHGs, cooperatives, State owned agencies and private entrepreneurs for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation center
- Marketing and branding support would be provided at State or regional level to FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises under the scheme following the ODOP approach for developing common packaging & branding with provision for quality control, standardization and adhering to food safety parameters for consumer retail sale. These organisations would be supported based on DPR prepared by them and recommended by the State Nodal Agency.
- Support for branding and marketing would be limited to 50% of the total expenditure. Procedure for applying Existing food processing units desirous of seeking assistance could apply online on FME portal. The Resource Persons (RPs) engaged for eld level support would provide handholding support for preparation of DPR, availing bank loan, obtaining necessary registration and licences including food standards of FSSAI, Udyog Aadhar and GST.
- Applications for support for FPOs / SHGs / cooperatives, common infrastructure and marketing & branding could be submitted to the State Nodal Agency (SNA) along with a DPR. The SNA would appraise the project and recommend it for bank loan. Grant by the Government would be deposited in the account of beneciary in the lending bank. If after a period of three years from the disbursement of last tranche of the loan, the beneciary account is still standard and the Unit is operational, this amount would be adjusted in the bank account of beneficiary.
Completed Application forms can be submitted either directly to the State Nodal Agencies or through the District Nodal contacts mentioned below
List of State Nodal Points for Application SubmissionList of District Nodal Points for Application Submission
The State Nodal Agencies will now be accepting applications for Cooperatives, FPOs, SHGs and Common Infrastructure under the PMFME Scheme in physical form. Following documents need to be submitted by the beneficiaries and would be recommended by the State Nodal Authorities to MOFPI for availing credit-linked subsidy.
- Signed Hard Copy of the Completed Application Form (pdf).
- Soft copy of the Completed Application Form (Excel).
- Supporting Documents for application.
- Detailed Project Report in PDF or word format.
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