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