Lok Sabha Question No. 3010 (UNSTARRED), answered on 2022-03-22
Subject: FPIs in Backward Areas of Maharastra
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Hemant Tukaram Godse

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION NO: 3010

ANSWERED ON: 22 ND  MARCH, 2022

## FPIs IN BACKWARD AREAS OF MAHARASTRA

## 3010.  SHRI HEMANT TUKARAM GODSE:

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

- (a) the salient features of Agro - Processing Cluster and Pradhan Mantri formalizsation of Micro Food Processing Enterprises (PMFME) schemes;
- (b) whether  the  Government  has  any  proposal  to  set  up  Food  Processing  Industries  (FPIs)  in Nashik and Dhule districts of Maharashtra as they are backward districts; and
- (c) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE FOR FOOD PROCESSING INDUSTRIES (SHRI PRAHLAD SINGH PATEL)

(a): The salient features of the scheme for Creation of Infrastructure for Agro Processing Clusters (APC) and Pradhan Mantri Formalizsation of Micro Food Processing Enterprises (PMFME) scheme is placed at Annexure.

(b) & (c): Under component schemes of Pradhan Mantri Kisan SAMPADA Yojana, Ministry of Food Processing Industries provides financial assistance for setting up Food Processing Industries to the eligible applicants selected on the basis of Expression of Interest (EoI) issued from time to time.  So far, 27 such projects have been approved for assistance in Nashik district, whereas 3 projects have been approved in Dhule district. 1 APC each has been approved in these districts.

Under  PMFME  Scheme,  financial,  technical  and  business  support  is  provided  for  setting up/upgradation  of  micro  food  processing  enterprises  based  on  One  District  One  Product  (ODOP) approach through credit linked subsidy. Banana for Dhule District and Onion for Nashik District has been identified as ODOP under the scheme. So far 6 individual applications have been approved in Nashik district, whereas 2 applications have been approved in Dhule district for assistance under the scheme.

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## ANNEXURE REFERRED TO IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO.  3010  ANSWER  ON  22 ND   MARCH,  2022  REGARDING  'FPIs  IN  BACKWARD  AREAS  OF MAHARASTRA'.

## 1. Salient features of the Scheme   of Creation of Infrastructure for Agro Processing Clusters

## (a) Objectives   of the scheme:

The scheme is aimed at development of modern infrastructure and common facilities to encourage entrepreneurs  to  set  up  food  processing  units  based  on  cluster  approach  and  also  to  create  modern infrastructure  for  food  processing  closer  to  production  areas  and  to  provide  integrated  and  complete preservation infrastructure facilities from the farm gate to the consumer.

## (b) Components under the scheme:

Two  basic  components  of  the  scheme  are  (i)  basic  enabling  infrastructure  and  (ii)  core infrastructure facilities. A minimum 5 food processing units with minimum investment of Rs. 25 crore are to be setup in the cluster.

## (c) Pattern of Assistance available under the scheme

Grants @ 35% of eligible project cost in general areas and @50% of eligible project cost in the North East States and difficult areas, SC/ST promoters subject to max. of Rs. 10.00 crore per project is admissible under the scheme.

## (d) Organization/ Entities Eligible for assistance under the scheme

Project Execution Agency (PEA) / organizations such as Govt. / PSUs / Joint Ventures / NGOs / Cooperatives / Self Help Groups (SHGs) /  Farmer Producer Organizations (FPOs) /  Farmer Producer Companies (FPCs) / Private Sector / partnership firm / individuals etc are eligible.

## 2. Salient features of PM Formalisation of Micro food processing Enterprises(PMFME) Scheme

## (a) Brief of the Scheme:

Ministry of Food Processing Industries(MoFPI) is implementing a Centrally Sponsored "PM Formalisation of Micro food processing Enterprises (PMFME) Scheme" (initially conceived as Gram Samaridhi Yojana) for  providing  financial,  technical  and  business  support  for  upgradation  of  micro  food  processing enterprises in the country.  The scheme aims to enhance the competitiveness of existing individual microenterprises in the unorganized segment of the food processing industry and promote formalization of the sector.

## (b) Objectives of the scheme:

The objectives of the scheme are to build capacity of two lakh micro enterprises through increased access to  credit,  integration  with  organized  supply  chain by  strengthening  branding  and  marketing,  increased access to common services, strengthening of institutions, research & training in the food processing sector.

- (c) Eligible organizations/ Entities and assistance available under the scheme: The details of support to Micro Food Processing Units under the scheme are mentioned below:

(i) Support to Individual Micro Enterprises: Credit-linked capital subsidy @35% of the eligible project cost, maximum ceiling Rs.10 lakh per unit;

(ii) Support to FPOs/ SHGs/ Producer Cooperatives: Credit linked Grant @35% to support clusters and groups such as FPOs/ SHGs/ Producer Cooperatives along their entire value chain for sorting, grading, storage, common processing, packaging, marketing, testing etc.

(iii) Support to SHGs for seed capital: Seed capital @ Rs. 40,000/- per member of SHG engaged in food processing for working capital and purchase of small tools.

(iv) Support  for  Common  Infrastructure: Credit  linked  grant  @  35%  to  support  FPOs,  SHGs, Cooperatives, any Government agency or private enterprises for Common infrastructure. The common infrastructure will also be available for other units and public to utilize on hiring basis for substantial part of the capacity.

(v) Branding and Marketing Support: Grant upto 50% for Branding and Marketing to groups of FPOs/ SHGs/ Cooperatives or an SPV of micro food processing enterprises.

(vi) Capacity Building: The scheme envisages training for Entrepreneurship Development Skilling and product specific training.