PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme)
Dear Businessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share with you benefit of “PM Formalisation of Micro Food Processing Enterprises Scheme (PM FME Scheme)”
Objective:
The objective of the proposed scheme would be Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.
Quantum of Assistance
Individual micro food processing units would be provided credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10.0 lakh per unit. Beneficiary contribution should be minimum of 10% of the project cost with balance being loan from Bank.
Eligible Entities:
In Scheme of PM FME assistance can be avail by an entity/organization such as Joint Ventures/ Cooperates / Self Help Groups SHGs / Farmer Producer Organizations (FPOs) / Private Sector Companies / Partnership Firms / Proprietorship Firms etc.
Eligibility:
• Existing micro food processing units in operations;
• Existing units should be those identified in the State Level Up gradation Plan (SLUP) for One District One Product (ODOP) products or by the Resource Person on physical verification. In case of units using electrical power, electricity bill would support it being in operations. For others units, existing operations, inventory, machines and sales would form the basis;
• The enterprise should be unincorporated and should employ less than 10 workers;
• The enterprise should preferably be involved in the product identified in the ODOP of the district. Other micro enterprises could also be considered;
• The applicant should have ownership right of the enterprise;
• Ownership status of enterprise could be proprietary / partnership firm;
• The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification;
• Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse and children;
• Willingness to formalize and contribute10% of project cost and obtain Bank loan;
• Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental workshed could be included in the project cost. Lease rental of workshed to be included in the project cost should be for a maximum period of 3 years only.
• Existing units should be those identified in the State Level Up gradation Plan (SLUP) for One District One Product (ODOP) products or by the Resource Person on physical verification. In case of units using electrical power, electricity bill would support it being in operations. For others units, existing operations, inventory, machines and sales would form the basis;
• The enterprise should be unincorporated and should employ less than 10 workers;
• The enterprise should preferably be involved in the product identified in the ODOP of the district. Other micro enterprises could also be considered;
• The applicant should have ownership right of the enterprise;
• Ownership status of enterprise could be proprietary / partnership firm;
• The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification;
• Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse and children;
• Willingness to formalize and contribute10% of project cost and obtain Bank loan;
• Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental workshed could be included in the project cost. Lease rental of workshed to be included in the project cost should be for a maximum period of 3 years only.
Applicability:
PM FME policy will be valid for a period of 5 years from the date of notification or till the time any new policy/amendment is introduced by Government of India, whichever is later (2021-22 to 2025-26)
For, more information on this scheme you are requested to contact our KIP subsidy helpline on Mail – sales@kipfinancial.com and contact Number – +918683898080.
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