The Pradhan Mantri Formallisation of Micro Food Processing Enterprises (PM-FME) scheme is a centrally sponsored initiative launched by the Government of India to support unorganized micro food processing units by providing financial, technical, and business assistance. It aims to enhance competitiveness, promote value addition, and encourage formalization of the sector through access to credit, training, and branding support.
Benefits Offer Under the Scheme
- Bank linked 35% subsidy upto 10 lakh
- Seed capital support of up to Rs40,000 per member for Self-Help Groups (SHGs) engaged in food processing.
- Skill training and capacity building for entrepreneurs, workers, and SHG members.
- Support for branding and marketing, including assistance for developing common brands and improving packaging.
- Infrastructure support through common facilities such as processing, storage, and incubation centers.
- Formalization assistance, including help with registration, compliance, and access to institutional credit
Eligibility
- Micro food processing units: Existing or new individual micro food processing enterprises with investment as per MSME norms.
- Ownership: Individuals, proprietorships, partnership firms, SHGs, Farmer Producer Organizations (FPOs), and cooperatives can apply.
- Unorganized sector focus: Primarily targets unregistered or informal micro food processing units seekingformalization.
- SHG members: Members engaged in food processing activities are eligible for seed capital and support.
- Bank credit linkage: Applicants must be willing to avail institutional credit for capital subsidy benefits.
- Adherence to ODOP (One District One Product): Preference is given to units aligned with thedistrict's identified product.
- Basic compliance: Units should obtain necessary registrations such as FSSAI and comply with food safety standards.
Application Details
- Online registration: Applicants need to register onthe official PM FME portal
- Submission of proposal: Fill in the application form and submit details of the enterprise, business plan, and project proposal.
- Document upload: Provide required documents such as identity proof, business details, bank account information, and project report.
- Scrutiny at district level: The application is reviewed by the District Resource Person (DRP) and District Level Committee (DLC).
- Bank appraisal: Approved applications are forwarded to banks for credit appraisal and sanction of loans.
- Approval and sanction: After bank approval, subsidy support under the scheme is sanctioned.
- Training and support: Beneficiaries may undergo training and receive technical/financial assistance.
- Disbursement of funds: Subsidy is released after loan disbursement and project implementationprogress.
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