PM Formalization of Micro Food Processing Enterprises(PM FME) scheme

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News: Union Minister for Food Processing has launched the PM Formalization of Micro Food Processing Enterprises(PM FME) scheme.

Facts:

  • Type: Centrally Sponsored Scheme
  • Aim: To provide financial, technical and business support for the upgradation of existing micro food processing enterprises.
  • Duration: It will be implemented over a period of five years from 2020-21 to 2024-25.
  • Funding: It 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.
  • Features of the Scheme:
  • 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.