PM FME Scheme

Brief

PM FME Scheme (PM Formalization of Micro Food Processing Enterprises Scheme) is a government initiative aimed at supporting and formalizing micro food processing enterprises. This scheme provides various benefits and resources to promote entrepreneurship and growth in the food processing sector.

Eligibility

• The company should be an existing Micro Food Processing Unit.
• The company should not be corporate and would be having less than 10 workers.
• The company should follow the policy of One District One Product (ODOP) then they will be given preference but other companies would also be considered.
• The applicant should have the ownership right of the company.
• The company or enterprise could be a Proprietary or Partner Firm.
• The maximum age of the applicant to apply for the scheme should be 18 years old.
• The applicant applying should be at least class 8th passed.
• This scheme has been eligible for only one person from a single family.
• The applicant should be willing to pay at least 10 percent of the amount and the rest of the amount will be given as a bank loan.
• The cost of the land on which the enterprise has been set would not be considered in the total cost of the project.
• The rent of the building cost, lease cost, or the rental cost could be included in the total cost of the project.
• The lease cost that would included in the project cost would not be more than 3 years of lease.

Fund / quantum

• Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25.

Tenure

• 2020-21 to 2024-25.

Benefit tags

• Cash Benefit Schemes

Notes

• Ministry of Food Processing Industries (MoFPI), in partnership with the State UT Governments, 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.

• Food processing entrepreneurs through credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
• Seed capital @ Rs. 40,000 - per SHG member for working capital and purchase of small tools.
• Credit linked grant of 35% for capital investment to FPOs SHGs producer cooperatives.
• Support for marketing & branding to micro-units.
• Support for common infrastructure and handholding support to SHGs, FPOs and Producer Cooperatives.
• Providing Capacity building and training support to increase the capabilities of the enterprises and upgradation of skills of workers.

• The company should be an existing Micro Food Processing Unit.

• The company should not be corporate and would be having less than 10 workers.

• The company should follow the policy of One District One Product (ODOP) then they will be given preference but other companies would also be considered.

• The applicant should have the ownership right of the company.

• The company or enterprise could be a Proprietary or Partner Firm.

• The maximum age of the applicant to apply for the scheme should be 18 years old.

• The applicant applying should be at least class 8th passed.

• This scheme has been eligible for only one person from a single family.

• The applicant should be willing to pay at least 10 percent of the amount and the rest of the amount will be given as a bank loan.

• The cost of the land on which the enterprise has been set would not be considered in the total cost of the project.

• The rent of the building cost, lease cost, or the rental cost could be included in the total cost of the project.

• The lease cost that would included in the project cost would not be more than 3 years of lease.

• Rs. 10,000 crore over a period of five years from 2020-21 to 2024-25.

• 2020-21 to 2024-25.

Online / portal

Official application / information link: https://pmfme.mofpi.gov.in/pmfme/newsletters/

Source listing: https://www.startupindia.gov.in/content/sih/en/government-schemes.html