Why In The News?

• Bihar has emerged as a leader in the successful implementation of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme for the financial year 2024-25.
• The state’s industries minister, Nitish Mishra, announced that 10,296 applicants received loan approvals.
• Out of these, 6,589 units benefited from disbursed loans, representing 63% of total distributions.
• This achievement is expected to boost industry and employment in Bihar.

PMFME Scheme:

⇒ The PMFME scheme aims to formalise the unorganised food processing sector in India.

⇒ It provides financial assistance to micro food processing units to enhance their competitiveness.

⇒ The scheme is operational from 2020-21 to 2025-26, with a total outlay of Rs 10,000 crore.

Financial Assistance Structure:

⇒ The PMFME scheme offers credit-linked subsidies to individual and group units.

⇒ Individual micro food processing units can receive a 35% subsidy on project costs, capped at Rs 10 lakh.

⇒ The beneficiary must contribute at least 10% of the total investment.

Support for Group Units:

⇒ For group units like Farmer Producer Organisations (FPOs) and self-help groups (SHGs), a similar subsidy of 35% applies, with a maximum of Rs 3 crore.

⇒ These groups also must contribute a minimum of 10% towards the project cost.

Common Facility Centres:

⇒ The scheme supports the establishment of Common Facility Centres for FPOs, SHGs, and cooperatives.

⇒ This initiative aims to enhance general infrastructure and operational capabilities within the food processing sector.

Beneficiary Categories:

⇒ The PMFME scheme caters to various beneficiaries, including entrepreneurs, private firms, cooperatives, NGOs, and SHGs.

⇒ This diversity allows for a broad impact across the food processing industry.

Objectives of the Scheme:

⇒ Key objectives include increasing access to finance for micro food processing units, improving revenue for target enterprises, and enhancing compliance with food safety standards.

⇒ The scheme also focuses on empowering women entrepreneurs and supporting aspirational districts.

Implementation Period and Goals:

⇒ The PMFME scheme is set to assist 200,000 micro-enterprises over its five-year implementation period.

⇒ The financial model involves a 60:40 expenditure sharing ratio between the Government of India and state governments.

Skill Training and Handholding Support:

⇒ The scheme includes provisions for on-site skill training and technical support.

⇒ This ensures that beneficiaries are equipped with the necessary skills and knowledge to successfully manage their enterprises.