The PM FME scheme will benefit 8 lakh units through access to information, training, better exposure and formalization.
The government on Monday launched the PM Formalization of Micro Food Processing Enterprises (PM FME) scheme as a part of 'Atmanirbhar Bharat Abhiyan' and as a part of Prime Minister's 'Atmanirbhar Bharat Abhiyan'.
Launched by Union Minister for Food Processing Industries Harsimrat Kaur Badal, the scheme would generate a total investment of Rs 35,000 crore and generate 9 lakh skilled semi-skilled employment.
It will benefit 8 lakh units through access to information, training, better exposure and formalization, a press release from the Ministry of Food Processing Industries said.
During the launch, Badal said that food products manufactured by the rural entrepreneurs in the villages have a long tradition of supplying Indian food products to the local population.
"In times of crisis, this Local has fulfilled our demand, this Local has saved us. Local is not just the need, it is our responsibility also. Time has taught us that we must make the Local as a mantra of our life. The Global Brands you feel today were sometimes also very local like this," she said.
Details of the scheme
The scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore. The expenditure under the scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with the legislature and 100% by Centre for other UTs, the govt release said.
The Scheme adopts One District One Product (ODODP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. The states would identify food product for a district keeping in view the existing clusters and availability of raw material.
Existing Individual micro food processing units desirous of upgradation of their unit can avail credit-linked capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
The minister also informed that MoFPI is planning to start free on-line skilling classes for SC and ST entrepreneurs, in collaboration with NIFTEM and FICSI, for providing e-learning.
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