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PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme)

Introduction

There are about 66,000 micro and small food processing units in Punjab. Two-third of these units are located in villages. These units are engaged in manufacturing jaggery, wheat flour, rice, milk products, mustard oil, biscuits, honey, pickles, marmalade, animal feed etc. According to Ministry of MSME, Government of India, most of these units fall under the micro category*. For the expansion of these micro units, entrepreneurs face various challenges like lack of modern technology, difficulty in getting loan, lack of branding and marketing etc. To incubate these unorganized units PMFME scheme provide financial, technical and business support such units. The main objectives of the scheme is:
  1. Bank loan facility at cheap rate.
  2. Tie-up with supply chain companies for marketing of products.
  3. Free technical and business training.
  4. Support to apply & obtain FSSAI, GST & Udyam Registrations
  5. Financial assistance for setting up of common infrastructure for processing/storage/packing.
(*Micro units are those units whose cost of Plant and Machinery or Equipment for re is less than Rs. 1 Cr. and their previous year’s Sales Turnover is less than Rs. 5 Cr.)

Budget and Targets

Total outlay is Rs 306 Cr. to be incurred over five years i.e. 2020-21 to 2024-25. This outlay is shared by Govt. of India and State Government in ratio of 60:40. The target is to provide financial assistance to 7,373 food processing units (existing/new). Assistance for setting up of common infrastructure and common branding & marketing of products are other important components of the scheme.

Credit Linked Capital Subsidy

Individual units
  1. Eligibility: Individual Entrepreneurs, Proprietorship/Partnerships firms,Pvt. Ltd. Cos. Farmer Producer Organizations/Companies, Self Help Groups and their Federations, Cooperatives and NGOs etc.
  2. Subsidy: 35% of eligible project cost, max. Rs.10 lakh. (Eligible Project cost: Total cost of plant machinery and technical civil works. However, cost of civil work should not be more than 30% while computing eligible project cost.)
  3. The beneficiary will be required to contribute a minimum of 10% of eligible project cost. A bank loan will have to be taken for the remaining amount.

Common Infrastructure (Groups)

  1. Eligibility: Farmer Producer Organizations/Companies (FPOs/FPCs), Self Help Groups (SHGs)& their Federations, Cooperative Societies and Government Agencies.
  2. Subsidy: 35% of Eligible Project Cost, max. Rs.3 Cr.. The eligible project cost should be less than Rs.10 Cr.. (Eligible Project cost: Total cost of plant machinery and technical civil works. Technical Civil cost should be less than 30% of the eligible project cost.)
  3. The beneficiary will be required to contribute a minimum of 10% of eligible project cost. A bank loan will have to be taken for the remaining amount.

Seed capital

Under the scheme, members of Self Help Groups (SHGs) registered with NRLM & NULM and already undertaking food processing activities are given Seed Capital upto Rs.40,000/- per member for working capital and purchase of small tools.

Branding and Marketing Support

Under the scheme, FPOs/SHGs/cooperatives or Special Purpose Vehicle (SPV) formed by micro enterprises will be given 50% subsidy on the cost for common brand, packaging and standardization of food products.

 

Nodal Agency
Punjab Agro Industries Corporation is the 'State Nodal Agency' to implement the scheme.

Contact Person

Mr. Rajnish Tuli,
General Manager (Food Processing),
Phone no. : +91 95920 09121
Email Id : rajnish.tuli28@punjab.gov.in