Aimed at generating investment of about Rs 35,000 crore and nine lakh skilled and semi-skilled employment, Indian on Monday launched the PM Formalization of Micro Food Processing Enterprises (PM FME).
The PM FME to be implemented over a period of five years will provide financial, technical and business support for up gradation of existing micro food processing enterprises. The expenditure would to be shared in 60:40 ratio between Central and State Governments.
Union Minister for Food Processing Industries Harsimrat Kaur Badal launched the scheme. She said that food products manufactured by the rural entrepreneurs in the villages have a long tradition of supplying Indian food products to the local population. She also mentioned that there were many challenges in the food processing sector, which was unorganised. Proper training, lack of access to modern technology and equipment, access to institutional credit, lack of basic awareness on quality control of products and lack of branding and marketing skills were some of the challenges that the sector faced, she added.
The programme is based on One District One Product (ODODP) approach. The states should identify food product for a district keeping in view the existing clusters and availability of raw material. The ODOP product could be a perishable produce based product or cereal based products or a food product widely produced in a district and their allied sectors. The units that produce ODOP products would get preference under the scheme.
Existing Individual micro food processing units desirous of up gradation of their unit can avail credit-linked capital subsidy @35 per cent of the eligible project cost with a maximum ceiling of Rs10 lakh per unit. Seed capital @ Rs. 40,000/- per SHG member would be provided for working capital and purchase of small tools. FPOs/ SHGs/ producer cooperatives would be provided credit linked grant of 35% for capital investment along the value chain. Support would be provided through credit linked grant @ 35% for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation center through FPOs/SHGs/cooperatives or state owned agencies or private enterprise to use by micro units in the cluster. Support for marketing & branding would be provided to develop brands for micro units and groups with 50% grant at State or regional level which could benefit large number of micro units in clusters.
The Scheme places special focus on capacity building and research. Individual entrepreneurs and other stake holders desirous of availing assistance under the scheme should contact the State Nodal Agencies of their respective states/ UTs regarding the roll out of scheme and contact points at the district level.
If you have an inspiring story to share to the world, sent it to indianflash15@gmail.com
