Lok Sabha Question No. 3334 (UNSTARRED), answered on 2021-03-16
Subject: Grant to Small Processing Units
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Bheemrao Baswanthrao Patil

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 3334

## ANSWERED ON 16 TH  MARCH, 2021

## GRANT TO SMALL PROCESSING UNITS

## 3334. SHRI B.B. PATIL:

Will the Minister of FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) whether the Government has taken any new initiative to provide grant for small processing units/cold storage setup;
- (b) if so, the details thereof;
- (c) if not, the reasons therefor; and
- (d) the details about the nodal officer, procedure and units sanctioned till date in the State of Telangana?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI RAMESWAR TELI)

(a) to (c): Ministry of Food Processing Industries is implementing Central Sector Umbrella Scheme - Pradhan Mantri Kisan SAMPADA Yojana, which provides financial support in setting up of small food processing units and cold storage for food processing industries under its various subschemes such as Creation/ Expansion of Food Processing & Preservation Capacities; Integrated Cold Chain and Value Addition Infrastructure; Creation of Backward and Forward Linkages etc.

As  part  of  Aatamnirbhar  Bharat  Abhiyan,  Ministry  of  Food  Processing  Industries  has launched an all India centrally sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" for providing financial, technical and business support for upgradation of existing micro food processing enterprises. It is to be implemented for a period of five years from 2020-21 to 2024-25 with an outlay of Rs.10,000 crore. Two lakh micro food processing units will be directly assisted with credit linked subsidy.

The PMFME scheme adopts One District One Product (ODOP) approach to reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products. ODOP approach would provide framework for value chain development   and alignment of support infrastructure.

The  PMFME  scheme  envisages  support  for  common  infrastructure  to  FPOs,  SHGs, Cooperatives, any Government agency or private enterprises. The following common infrastructure would be funded under the Scheme:

- i. Premises for assaying of agriculture produce, sorting, grading, warehouse and cold storage at the farm-gate;
- ii. Common processing facility for processing of ODOP produce;

iii. Incubation Centre involves one or more product lines, which could be utilized by smaller units on  a  hire  basis  for  processing  of  their  produce.  The  Incubation  Centre  can  partly  be  used  for training purpose. It would be run on commercial basis.

(d):      The PMFME scheme envisages that each State/UT would appoint State Nodal Agency, which would be the operational agency at the State/UT level for implementing the scheme.  The details of State Nodal Officer in the State of Telangana are as under:-

'Shri  Akhil  Kumar Gawar, Director,  Food Processing,  Government of Telangana,  Hyderabad Phone No. 040-23319273, e-mail: dir-fp-ind@telangana.gov.in'.

The applicant would be required to submit their proposal online on PMFME portal. After scrutiny  of  the  proposal,  District  Level  Committee  would  recommend  the proposal  to  lending institution for approval and sanction of loan.  The subsidy would be released to beneficiary after sanction of loan.  District Resource Person would provide handholding support to the beneficiaries for preparation of DPR, taking bank loan, obtaining necessary registration & license etc.   PMFME portal for receipt of proposals has been recently launched for individual micro enterprises and applicants have started submitting proposals.  In the state of Telangana about 4700 units would be supported during the scheme implementation period 2020-25.

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