Food Processing Industries

OPPORTUNITY ON FOOD PROCESSING INDUSTRIES UNDER PM FORMALIZATION OF MICRO FOOD PROCESSING ENTERPRISES SCHEME (PMFME)

1) SUPPORT TO INDIVIDUAL MICRO ENTERPRISES

• Support to both new or existing micro food processing enterprises for setting up of new and expansion of existing enterprises.
• Individual micro food processing units would be provided credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10.0lakh per unit. Eligible project cost comprises cost of plant & machinery and technical civil work.
• Beneficiary contribution should be minimum 10% of the project cost with balance being loan from Bank.
• Applicant should be above 18 years of age. No minimum educational qualification of the applicant is required.

ELIGIBLE ORGANIZAION FOR SUPPORT TO INDIVIDUAL MICRO ENTERPRISES:-

Individual entrepreneurs/ Proprietorship firms / Partnership firms / Private limited company/FPOs/NGO/ SHGs /Cooperatives who have established or propose to establish Micro Food Processing Unit, would be eligible for financial assistance under this Scheme.

2) SUPPORT TO GROUP CATEGORY FOR SETTING UP COMMON INFRASTRUCTURE:-

• Eligibility of a project under this category would be Credit linked grant @ 35% on eligible project cost, Maximum limit of grant is Rs.3.00 crore. Total eligible project cost should not exceed Rs. 10 crore.
• Substantial capacity of common infrastructure as well as processing line assisted under the scheme should be available for use by other units & public on hiring basis.
• Beneficiary contribution should be minimum 10% of the project cost with balance being loan from Bank.

DPR preparation support:-

Assistance of Rs. 50,000/- per case would be provided to FPOs/SHGs/Cooperatives for preparation of DPR.

ELIGIBLE ORGANISAION SUPPORT TO GROUP CATEGORY FOR SETTING UP COMMON INFRASTRUCTURE:-

Support for common infrastructure would be provided to FPOs, FPCs, SHGs and its Federation/Cooperatives/Government agencies, who have established or propose to establish food processing line along with common infrastructure/ value chain/ incubation centres.

3) Training support to individuals/groups:-S

Training support provided to individuals, groups enterprises who are getting support for capital investment, marketing and branding.

Farmers Producers Organisation (FPOs) and Producer Cooperatives would be provided the following support:-

Grant @35% with credit linkage, maximum as prescribed.

Eligibility Criteria for Co-operatives/FPOs:

• It should have minimum turnover of Rs.1 crore;
• The cost of the project proposed should not be larger than the present turnover;
• The members should have sufficient knowledge and experience in dealing with the product for a minimum period of 3 years.
• The cooperative/FPO should have sufficient internal resources or sanction from the State Government to meet 10% of the project cost and margin money for working capital;

For Self Help Groups (SHGs) Support:-

a) Seed capital:-

• Seed capital @ Rs40,000/- per member of SHG for working capital and purchase of small tools would be provided under the scheme;
• All the members of an SHG may not be involved in the food processing. Therefore, seed capital would be provided at the federation level of SHGs;
• This would be given as grant to the SHG federation by SNA/ SRLM. SHG federation would provide this amount as a loan to the members of SHGs to be repaid to the SHG.

b) Support to individual SHG member as a single unit of food processing industry with credit linked grant @35% with maximum amount being Rs 10 lakh.

c) Support for capital investment at federation of SHG level, with credit linked grant @35%. Maximum limit of grant in such cases would be as prescribed.

d) Training & Handholding Support to SHGs: For support to SHGs, a large number of trained resource persons are available with State Rural Livelihood Missions(SRLMs). These local resource persons of SRLM having expertise in agro-produce would be utilized for training, up gradation of units, DPR preparation, handholding support, etc.

Eligibility Criteria for Seed Capital for SHGs:

• Only SHG members that are presently engaged in food processing would be eligible;
• The SHG member has to commit to utilize this amount for working capital and purchase of small tools and give a commitment in this regard to the SHG and SHG federation;
• Before providing the seed capital, SHG Federation should collect the following basic details for each of the members:
  • Details of the product being processed;
  • Other activities undertaken;
  • Annual turnover;
  • Source of raw materials and marketing of produce.

Eligibility Criteria for Credit Linked Grant for Capital Investment for SHGs:-

• The SHGs should have sufficient own funds for meeting 10% of the project cost and 20% margin money for working capital or sanction of the same as grant from the State Government;

Application Website: –

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Application Procedure:-

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