SCHEME FOR FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES (FME)

May 21, 2020

Union Cabinet gave its approval to a new Centrally Sponsored Scheme named Scheme for Formalization of Micro Food Processing Enterprises for the Unorganized Sector on All India basis with an outlay of Rs. 10 thousand crore.

About:

The expenditure will be shared by Centre and the States in ratio of 60:40.
The objectives of the scheme is to increase in access to finance by micro food processing units and enhanced compliance with food quality and safety standards.
Scheme will be implemented over a five-year period from 2020-21 to 2024-25 and two lakh micro-enterprises are to be assisted with credit linked subsidy.
Micro enterprises will get credit linked subsidy at 35 per cent of the eligible project cost with ceiling of Rs. 10 lakh.
Beneficiary contribution will be minimum 10 per cent and balance from loan. Seed capital will be given to SHGs (Rs. four lakh per SHG) for loan to members for working capital and small tools.
There will be on-site skill training and Handholding for DPR and technical upgradation.
The scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee under the Chairmanship of Minister, Food Processing Industries.