Lok Sabha Question No. 4455 (UNSTARRED), answered on 2025-03-27
Subject: Seed Capital Assistance to SHGs
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri P P Chaudhary, Smt. Bharti Pardhi, Smt. Mala Rajya Laxmi Shah, Shri Ramesh Awasthi, Dr. K Sudhakar, Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA

## MINISTRY OF FOOD PROCESSING INDUSTRIES

## LOK SABHA UNSTARRED QUESTION No. 4455

TO BE ANSWERED ON 27 TH  MARCH, 2025

## SEED CAPITAL ASSISTANCE TO SHGS

## 4455.   SHRI P P CHAUDHARY:

SMT. BHARTI PARDHI:

SMT. MALA RAJYA LAXMI SHAH:

SHRI RAMESH AWASTHI:

DR. K SUDHAKAR:

SHRI SHRIRANG APPA CHANDU BARNE:

Will the MINISTER OF FOOD PROCESSING INDUSTRIES be pleased to state:

- (a) the manner in which seed capital assistance contributes to the overall development and sustainability of Self-Help Groups (SHGs) in the food processing industry;
- (b) the amount sanctioned as seed capital assistance to Self-Help Groups (SHGs) under the scheme till February 2025;
- (c) the impact of this seed capital assistance on the local economy and women's empowerment, as many Self-Help Groups (SHGs) are led by women;
- (d) the number and financial value of loans sanctioned under the scheme till February 2025 particularly in Madhya Pradesh and Maharashtra;
- (e) the number of incubation centers sanctioned and operational under the scheme till February 2025, State-wise particularly in Madhya Pradesh and Maharashtra; and
- (f) the details of the support given to food processing sector in Karnataka, especially those operating as MSMEs under various scheme of the Government during 2024-25?

## ANSWER

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

(a) to (c): Seed capital assistance under Centrally Sponsored "Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme" contributes to the overall development and  sustainability  of  Self-Help  Groups  (SHGs)  in  the  food  processing  industry  by  providing collateral-free  loans  on  flexible  terms  set  by  the  respective  SHG  federation.  Further,  the  seed capital remains in the SHG network's corpus fund, which circulates to support other SHG members and  helps  access  formal  bank  loans  through  margin  money  contributions.  As  women  gain economic control, it improves their livelihoods and promotes gender equality, social inclusion and overall social growth of the family.

The  details  of  support  available  for  Self-Help  Groups  (SHGs)  under  PMFME  Scheme  are  at Annexure-I .

Till date 28 th February, 2025, a total of 3,27,074 SHG members have been sanctioned for seed capital assistance with an amount of Rs. 1101.27 crores.

(d): As of 28 th February 2025, 1,27,758 loans have been sanctioned with amount of Rs. 10138.64 crores out of which 8570 loans have been sanctioned amounting to Rs. 742.07 crores in the State of Madhya Pradesh and 22,167 loans sanctioned amounting to Rs. 1162.68 crores in the State of Maharashtra respectively.

(e): As on 28 th February 2025, 75 incubation centres have been sanctioned in the country including Madhya Pradesh  and  Maharashtra,  out  of  which  17  Incubation  centres  have  been  completed/ operational. The State-wise details of incubation centres are at Annexure-II .

(f): Centre Share of Rs. 60.00 crores has been released to State of Karnataka during FY 2024-25 for  implementation  of  Centrally  Sponsored  "Pradhan  Mantri  Formalisation  of  Micro  Food Processing  Enterprises  (PMFME)  Scheme"  implemented  by  the  Ministry  of  Food  Processing Industries (MoFPI). Under this scheme, 1950 loans amounting to Rs. 188.81 crores have been sanctioned  for  credit  linked  subsidy  for  setting  up  /  upgradation  of  micro  food  processing enterprises  during  FY  2024-25.  However,  data  on  support  given  to  food  processing  sector especially those operating as MSMEs under various scheme of the Government during 2024-25 is not maintained by MoFPI.

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## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (a)  TO  (c)  OF  LOK  SABHA UNSTARRED QUESTION NO. 4455 ANSWERED ON 27.03.2025 REGARDING 'SEED CAPITAL ASSISTANCE TO SHGS'

The following support is  provided  under  PMFME Scheme in the  country  for  all  the  products including ODOP products:

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

(ii). 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  subject  to maximum of Rs. 4 lakhs per SHG Federation. (iii). Support for Common Infrastructure: Credit linked capital subsidy @35% subject to maximum of Rs. 3 crores to support FPOs, SHGs, Cooperatives and any Government agency for setting up of common infrastructure. (iv). 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.

(v). Capacity Building: The scheme envisages training for Entrepreneurship Development Program (EDP) to meet the requirement of food processing industry and product specific skilling.

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## ANNEXURE  REFERRED  IN  REPLY  TO  PART  (e)  OF  LOK  SABHA  UNSTARRED QUESTION  NO.  4455  ANSWERED  ON  27.03.2025  REGARDING  'SEED  CAPITAL ASSISTANCE TO SHGS'

## State-wise details of incubation centres

| S.No.   | State             |   Incubation Centre approved | Incubation Centre completed/ operational   |
|---------|-------------------|------------------------------|--------------------------------------------|
| 1       | Andhra Pradesh    |                            2 | 1                                          |
| 2       | Assam             |                            1 |                                            |
| 3       | Bihar             |                            2 |                                            |
| 4       | Chhattisgarh      |                            2 |                                            |
| 5       | Delhi             |                            2 |                                            |
| 6       | Goa               |                            1 |                                            |
| 7       | Himachal Pradesh  |                            3 |                                            |
| 8       | Jammu And Kashmir |                            3 |                                            |
| 9       | Karnataka         |                           14 | 6                                          |
| 10      | Kerala            |                            1 |                                            |
| 11      | Ladakh            |                            2 |                                            |
| 12      | Madhya Pradesh    |                            3 |                                            |
| 13      | Maharashtra       |                            3 | 2                                          |
| 14      | Mizoram           |                            1 | 1                                          |
| 15      | Nagaland          |                            1 |                                            |
| 16      | Odisha            |                            1 |                                            |
| 17      | Punjab            |                            1 |                                            |
| 18      | Rajasthan         |                            8 | 3                                          |
| 19      | Sikkim            |                            2 |                                            |
| 20      | Tamil Nadu        |                            4 | 3                                          |
| 21      | Telangana         |                            3 | 1                                          |
| 22      | Tripura           |                            1 |                                            |
| 23      | Uttar Pradesh     |                           14 |                                            |
|         | Grand Total       |                           75 | 17                                         |

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