PM FME Scheme 2023: Apply Online, PMFME Benefits

PM FME Scheme | PM FME Scheme Apply Online | PM FME Scheme Application Form | PM FME Scheme Benefits | PM FME Scheme | PM FME Scheme Subsidy
The central government with the state government has started PM FME Scheme to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote the formalization of the sector. Today in this article we are going to discuss everything about the scheme like its eligibility criteria, required documents, objectives, benefits, important highlights, the application process, etc. So to know more stay connected with us.
PM FME Scheme

PM FME Scheme

On 29 June 202o, the central government along with the state government launched PM FME Scheme. PM FME Scheme stands for PM Formalisation of Micro Food Processing Enterprises Scheme. The objective of this scheme is to increase access to credit by existing micro food processing enterprises, FPOs, self-help groups, and cooperatives. Under this scheme, 2 lakh micro food processing units will be covered with credit-linked subsidies. The scheme will formalize micro units through GST, Udyog Aadhaar, and FSSAI registration. The Ministry Of Food Processing Industries is responsible for implementing this PM FME Scheme.

Apart from this quality improvement through training and technical knowledge, the establishment of common and basic facilities and skill development will be provided. The government has allocated a budget of Rs 10000 crore for a period of five years from 2020-21 to 2024-25. Under this scheme, branding and marketing support will be provided.

About PM Formalisation of Micro Food Processing Enterprises Scheme
Started By Ministry of Food Processing Industries, Government Of India
Started On 29th June 2020
Concerned Authority Ministry Of Food Processing Unit, Govt Of India
Objective To Cover Micro Food Processing Unit With Credit Linked Subsidy
Beneficiary Residents Of India
Official Website Click Here

Objective Of PM FME Scheme

The objectives of the PM Formalisation of Micro Food Processing Enterprises Scheme are:

  • To increase access to credit by existing micro food processing enterprises, FPOs, self-help groups, and cooperatives.
  • To enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.
  • To support marketing & branding to micro-units.
  • Support for common infrastructure and handholding support to SHGs, FPOs, and producer cooperatives.
  • To provide capacity building and training support to enhance the capabilities of the enterprises and upgrade the skills of the workers.

Key Points & Benefits Of The PM FME Scheme

  • The central government with the state governments has started PM FME Scheme.
  • Under this scheme, 2 lakh micro food processing units will be covered with credit-linked subsidies.
  • The plan also provides branding and marketing support.
  • The scheme will formalize micro units through GST, Udyog Aadhaar, and FSSAI registration.
  • Farmer producer organizations, self-help groups, and producers cooperatives are eligible beneficiaries under this scheme
  • The Ministry Of Food Processing Industries is responsible for implementing this PM FME Scheme.
  • For upgrading their food processing facilities financial assistance will be provided to the beneficiaries under this scheme.
  • Apart from this quality improvement through training and technical knowledge, the establishment of common and basic facilities and skill development will be provided.
  • The government has allocated a budget of Rs 10000 crore for a period of five years from 2020-21 to 2024-25.

Registration Statics Under PM FME Scheme

Total applications submitted 18278
Total applications submitted 12543
Total non-ODOP applications submitted 5724
New Individual application submitted 11754
Existing individual applications submitted 6524

Components Of The PM FME Scheme

  • Assistance to individuals and groups of micro-enterprises
  • Branding and Marketing Support
  • Cooperation for the strength of the organization
  • Establishing a Progress Project Management Framework

Assistance To Individual Micro Enterprises

Under the PM FME scheme, the government is going to provide credit-linked capital subsidies to individual micro food processing units at the rate of 35% of the eligible product cost. This credit-linked capital subsidy will be provided with a maximum limit of Rs 10 lakh per unit. The beneficiary has to contribute at least 10% of the project cost with the balance amount as a loan from the bank. Technical knowledge, skill training, and support services will be provided through this scheme for the capacity building of micro food entrepreneurs.

Eligibility Criteria of Individual Micro Enterprise

  • The enterprise should be engaged in food processing activities.
  • The micro-enterprise must be in operation.
  • 1 person from a family can take advantage of this scheme.
  • The age of the applicant should be 18 years or more.
  • Applicant must be at least 8th pass.
  • Only Proprietorship or Partnership firms can avail the benefits of this scheme.
  • The applicant should have ownership rights of the enterprise.
  • The identified products in the district should include enterprises in one product of the district. Other possible units may also be considered.
  • The enterprise should be incorporated and at least 10 workers should be employed in the enterprise.
  • The cost of land should not be included in the project cost.
  • With a long lease or rental worksheet, the cost of the finished build may be included in the project cost.
  • The lease rent of the workshed should be for a maximum period of 3 years.
  • An entrepreneur should be ready to contribute 10% of the project cost and get a bank loan.

Selection Process Of Individual Micro Enterprise

  • Individual micro-enterprise identification is done for the selection of the group.
  • Preference will be given to enterprises engaged in one district with one product.
  • Enterprises that have potential will also get support through this scheme.
  • Applications will be invited at the district level.
  • The resource person will also survey the clusters.
  • The resource person will identify the doors and wonders that have the potential to take advantage of this scheme.
  • The resource person will do field verification of applications received directly.
  • Received applications will be presented before the district-level committee.
  • District Level Committee will study the report submitted by the resource person and interview the interested candidates.
  • The report details include the annual turnover of the enterprise, track record of payments by the enterprise, existing infrastructure, backward and forward linkages, proximity to clusters, and marketing linkage of the enterprise.
  • Resource persons will assist them in preparing DPRs for the cases recommended by the District Level Committee so that they can get bank loans.
  • All the necessary documents including DPR have to be submitted to the bank for loan approval.
  • The level of finalization of individual micro units to be assisted will be decided by the state government.

Support To Group Category Under PM FME Scheme

Under the PM FME scheme Clusters and groups such as Farmer Producer Organisations, Self Help Groups, and Producer Cooperative Societies along with their entire value chain will be supported. Assistance will be provided for sorting, grading, storage and processing, packaging, marketing, processing, etc. of agricultural produce. For this purpose, a grand at the rate of 35% will be provided along with credit linkage. Apart from this, training assistance will also be provided through this scheme. The maximum limit of grants in such cases will be as prescribed.

Eligibility Criteria Of Cooperative/FPOs

  • The cooperative or farmer-producer organization should preferably be engaged in one product produced in one district.
  • Cooperative or FPO should be engaged in food processing activities.
  • The maximum turnover of the enterprise should be at least Rs.1 crore.
  • The cost of the project should not exceed the current turnover.
  • The members of the enterprise should have the necessary knowledge and experience in dealing with the product for at least three years.
  • The cooperative or farmer producer organization should have sufficient internal resources or approval from the state government to meet 10% of the project cost and margin money for working capital requirements.

Support To Self Help Groups Under PM FME Scheme

Financial assistance will be provided to self-help groups engaged in food processing under the PM FME scheme.

  • Seed Capital- Seed capital will be made available at Rs 40,000 to each member of the self-help group for the requirement of working capital and equipment purchase. The assistance will be given as a grant. Priority will be given to those self-help groups associated with one district, one product. The SHG members are not involved in food processing, so the seed capital will be provided at the federation level.
  • Financial support- Under this scheme, assistance will be provided to individual self-help group members, which is credit-linked grand at the rate of 35%, the maximum amount of this grant that the beneficiary can get is Rs.10 lakh.
  • Capital investment- A credit-linked grant of 35% will be provided as assistance for capital investment at the SHG level. The maximum limit of this grant will be determined from time to time.
  • Training and handholding support- Training and handholding support will provide to the Self Help Groups. Under the State, Rural Livelihood Mission has a large number of trained skillful persons. These people will have expertise in agricultural products which will be used for training, upgradation of units, handholding support, etc.

Eligibility Criteria For Seed Capital For Self-Help Groups

  • The benefit of this scheme can be availed only by those self-help group members who are engaged in food processing.
  • The number of seed funds should only be used for the purchase of working capital and small tools.
  • Self-help groups must be engaged in food processing activities.
  • Before providing seed funds to the Self-Help Group Federation, it is necessary to collect the following details about each member of the Self-Help Group:-
    1. Source of raw material and marketing of produce
    2. Annual turnover
    3. Details of the product being processed
    4. Other undertaken activities

Eligibility Criteria For Credit Linked Grant For Capital Investment For Self-Help Groups

  • Self-help group members should have at least 3 years of experience in one district and one product production.
  • The SHG should have sufficient funds to meet 10% of the project cost and 20% as margin money.
  • Self-help groups should be engaged in food processing activities.

Support For Common Infrastructure Under PM FME Scheme

Under the PM FME scheme support for the common infrastructure, assistance will be provided to self-help groups, cooperatives, farmer producer organizations, private enterprises, or any government agency for common infrastructure. The eligibility of a project will be decided based on benefits of large scale to farmers and industries, viability gap, absence of private investment, etc. The loan assistance for common infrastructure will be provided at 35% for credit-linked grants. The maximum limit of the grant will be determined from time to time. The incubation center, one district one product common processing facility for processing the product, warehouse, cold storage, etc will be covered for infrastructure support.

Groups To Send Proposals For Common Infrastructure And Capital Investment

  • A DPR needs to be prepared to get assistance.
  • The DPR should contain all the necessary details of the proposal like detailed proposal cost, proposed manpower, turnover, marketing channels, etc.
  • This DPR should be presented to the State Nodal Agency.
  • When we comment on the proposal of MoFPI after approval of the project SNA.
  • All proposals for grants-in-aid exceeding Rs 10 lakh to a group will be sent to the ministry for approval
  • After approval, the proposal will be sent to the financial institution for loan sanction.
  • 50 thousand rupees will also be given for preparing DPR.

Branding And Marketing Support Under PM FME Scheme

Marketing and branding support will be provided to SPVs of farmer producer organizations, self-help groups, cooperatives, or micro food processing enterprises under the PM FME scheme. Marketing and branding support will be provided for the One District One Product product at the state or regional level. The scheme will also provide support for the development of a common brand and packaging and marketing tie-ups with national and regional retail chains and state-level institutions.

Eligibility Criteria For Marketing And Branding Support

  • Products and producers need to be massively scalable.
  • The proposal should establish management and enterprise capability to promote the unit.
  • Applicant should be an FPO/SHG/Cooperative/Regional State level SPV.
  • The enterprise should be engaged in food processing activity.
  • The final product is sold in a retail pack to the customer.
  • The minimum turnover of the product should be Rs 5 crore.
  • The proposal should be for one district and one product.

Coverage Of State/Union Territory And Funding Pattern

  • This scheme is for All India Centrally Sponsored Scheme with an initial outlay of Rs.10000 crore for coverage of 2 lakh companies in 5 years.
  • The expenditure on this scheme will be shared between the Central and State Governments in a ratio of 60:40.
  • In the case of the North Eastern Himalayan State, the ratio between the Central and State Governments will be 90:10.
  • In a union territory with a legislature, the ratio between the state and the central government would be 60:40.
  • In the case of another union territory, 100% of the funding will be done by the Central Government
  • The expenditure to be incurred in the first year i.e. 2020-21 whether incurred by the Center or the State will be borne by the Central Government
  • The expenditure incurred in the first year will be adjusted equally in the amount to be transferred to the State in the next 4 years in the above proportion.
  • Funds under the scheme will be provided to the states based on the approved project implementation plan.

One District One Product Approach

  • To reap the benefit of scale in terms of procurement of inputs, availing common services, and marketing of products the form will be implemented in one district one product approach.
  • However, assistance will also be provided to units manufacturing other products.

Upgradation Of Food Processing Unit

  • Individual micro food processing units will be given credit-linked capital subsidies at the rate of 35% of the eligible products. Project cost for expansion or technical upgradation with a ceiling of Rs.10 lakh per unit.
  • The beneficiary contribution should be a minimum of 10% and the balance amount should be loaned from the bank.
  • Continuous applications will be invited at the district level for units willing to take advantage of the scheme.
  • The current food processing unit desirous of getting assistance under the scheme will have to apply on the portal.
  • Loan proposals will be recommended to banks after scrutiny.
  • States will decide the appropriate level of shortlisting of applications to be recommended to banks.

Procedure To Apply For Assistance Under Branding And Marketing

  • A DPR needs to be prepared for the proposal which includes all the necessary details related to the project like the product, strategy, quality control, aggregation of production, general packaging, branding, etc.
  • SNA will assist up to Rs.500000 for the preparation of DPR.
  • The proposal also needs to include a flow chart of the activities.

Support To State Level Technical Institution

State-level technical institutes will be nominated by the state government for the PM FME scheme. The state-level Technical Institution will be responsible for preparing PIP for the state-level technical institutions, providing inputs to PIP, conducting capacity-building training for district resource persons, providing input for branding and marketing plans, providing mentoring support to district resource persons, etc.

Eligibility Criteria Of State-Level Technical Institution

  • A state-owned food processing technology research institute.
  • Any college or institution under the State Agricultural University or any other University.
  • Institute under CSIR or any institute of the Government of India focusing on food processing.
  • If the institute is a college, it must have an undergraduate or postgraduate course in food processing technology.
  • The institute should have a laboratory with the necessary equipment.
  • The institute should have faculty engaged in research work and product development.
  • The proposal should be recommended by the State Government.
  • The institution should have sufficient build-up space.
  • The institute should have pilot plants for processing two products under one district one product.

Implementation And Monitoring Mechanism Agencies

  • District level committee
  • National Apex institutions
  • Inter-ministerial committee
  • The State nodal department
  • Project executive committee
  • State-level technical Institutions
  • State-level approval committee
  • State nodal department agency
  • The national program management unit
  • Committee on capacity building and research
  • State program management unit Resource persons

Required Documents For PM FME Scheme

  • Aadhar card
  • Age proof
  • Residence proof
  • Incorporation certificate
  • Bank account details
  • Passport size photograph
  • Mobile number

How To Apply Online For PM FME Scheme?

PM FME Scheme

  • On the homepage, you have to click on online registration.
  • Now you have to click on sign up.
  • The registration form will open on your screen.
  • Fill in all the details asked in the form such as:
    1. Type of beneficiary
    2. Name
    3. Email ID
    4. Mobile number
    5. Address
    6. State
    7. District
  • Now you have to click on the register
  • Now you have to log in on the portal.
  • You have to select the beneficiary type.
  • Enter your user id and password
  • After that you have to click on submit
  • Now you have to click on apply now.
  • On your screen application form will appear before you
  • Fill in all the details asked in the application.
  • Upload the asked document in the form.
  • After completing the form you have to click on submit.

Procedure To Do Applicant Login

  • First of all, you have to visit the official website of the PM FME scheme.
  • On the homepage, you have to click on Login.
  • Now you have to click on applicant login.
  • You have to select the beneficiary type.
  • Enter your user id and password
  • After that you have to click on submit

Procedure To Do MIS Login

  • First of all, you have to visit the official website of the PM FME scheme.
  • On the homepage, you have to click on Login.
  • Now you have to click on MIS login.
  • You have to select the beneficiary type.
  • Enter your user id and password
  • After that, you have to click on submit.

NOTE:- Stay connected to our website Yojanasarkari for information about any scheme related to Central Government and State Government.

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