Lok Sabha Question No. 1837 (UNSTARRED), answered on 2024-12-05
Subject: Financial Assistance to Enterprises under PMFME
Ministry: FOOD PROCESSING INDUSTRIES
Asked by: Shri Shashank Mani

## GOVERNMENT OF INDIA MINISTRY OF FOOD PROCESSING INDUSTRIES

LOK SABHA UNSTARRED QUESTION No. 1837 ANSWERED ON 5 TH  December, 2024

## FINANCIAL ASSISTANCE TO ENTERPRISES UNDER PMFME

## 1837.  SHRI SHASHANK MANI:

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

- (a) whether the Government has provided financial assistance to enterprises under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme;
- (b) if so, the details thereof, including the total funds allocated and disbursed, State-wise;
- (c) the salient features of the PMFME scheme, including eligibility criteria and types of enterprises supported; and
- (d) whether the scheme has had an impact on the formalization of micro food processing enterprises and employment generation in rural areas, particularly for women and marginalized communities and if so, the details thereof?

## ANSWER

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

(a) to (c).  Ministry of Food Processing Industries (MoFPI) is implementing a Centrally Sponsored"Pradhan  Mantri  Formalisation  of  Micro  Food  Processing  Enterprises  (PMFME)  Scheme"  for providing  financial,  technical  and  business  support  for  upgradation  of  micro  food  processing enterprises in the country. The scheme is operational for a period from 2020-21 to 2025-26 with an outlay of Rs. 10,000 Crore.  The scheme aims to enhance the competitiveness of existing individual micro-enterprises  in  the  unorganized  segment  of  the  food  processing  industry  and  promote formalization  of  the  sector.  The  Scheme  primarily  adopts  One  District  One  Product  (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. It provides the framework for value chain development and alignment of  support  infrastructure.    The  ODOP  are  identified  by  States  /  UTs  based  on  the  agriculture production,  raw  material  availability,  perishability  of  the  product  etc.  Organizations  such  as Proprietorship Firms/ Partnership Firms/ Farmer Producer Organizations(FPOs)/ Nongovernmental Organization (NGOs)/ Cooperatives/ Self Help Group (SHGs)/ Pvt. Ltd. Companies etc. are eligible for financial assistance under the Scheme. The details of financial assistance offered to  the  enterprises  under  Pradhan  Mantri  Formalisation  of  Micro  Food  Processing  Enterprises (PMFME) Scheme is at Annexure-I . The allocation of funds (Centre Share) to States / UTs depend on the progress of implementation of the scheme by them and utilization of already released funds. However, the State / UT-wise details of funds (Centre Share) released for implementation of various components of the PMFME Scheme till 31 st October, 2024 is at Annexure-II .

(d).  Till 31 st October, 2024, 31,805 micro food processing units have been formalized through credit linked subsidy support including 2,442 SC, 1,315 ST and 14,432 women beneficiaries (including 1345 SC and 646 ST women beneficiaries) and about 1,21,450 direct / indirect employment has been generated under the PMFME Scheme. The Scheme is demand driven and focuses equally on implementation in rural and urban areas.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to (c)  OF THE  LOK  SABHA UNSTARRED  QUESTION  NO.  1837  FOR  ANSWER  ON  05.12.2024  REGARDING 'FINANCIAL ASSISTANCE TO ENTERPRISES UNDER PMFME'

The details of financial assistance offered to the enterprises under Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme are as under:

- (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 lakh per SHG Federation.
- (iii). Support  for  Common  Infrastructure: Credit  linked  capital  subsidy  @35%  subject  to maximum of Rs. 3 crore to support FPOs, SHGs, Cooperatives and any Government agency for setting up of 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.
- (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 Skilling (EDP+): program modified to meet the requirement of food processing industry and product specific skilling.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) to  (c) OF THE  LOK  SABHA UNSTARRED  QUESTION  NO.  1837  FOR  ANSWER  ON  05.12.2024  REGARDING 'FINANCIAL ASSISTANCE TO ENTERPRISES UNDER PMFME'

State / UT-wise details of funds (Centre Share) released for implementation of various components of the PMFME Scheme till date 31 st  October, 2024

| Sl. No.   | States / UTs                       |   Total Amount released (Rs. in Cr.) |
|-----------|------------------------------------|--------------------------------------|
| 1         | Andaman &Nicobar Island            |                                 4.12 |
| 2         | Andhra Pradesh                     |                               115.78 |
| 3         | Arunachal Pradesh                  |                                18.59 |
| 4         | Assam                              |                               118.02 |
| 5         | Bihar                              |                               211.28 |
| 6         | Chandigarh                         |                                 2    |
| 7         | Chhattisgarh                       |                                28.58 |
| 8         | Dadra &Nagar Haveli &Daman and Diu |                                 1.29 |
| 9         | Delhi                              |                                 3.98 |
| 10        | Goa                                |                                 9.34 |
| 11        | Gujarat                            |                                47.04 |
| 12        | Haryana                            |                                42.63 |
| 13        | Himachal Pradesh                   |                                70.51 |
| 14        | Jammu &Kashmir                     |                                18.39 |
| 15        | Jharkhand                          |                                24.22 |
| 16        | Karnataka                          |                               148.06 |
| 17        | Kerala                             |                                75.3  |
| 18        | Ladakh                             |                                 6.29 |
| 19        | Lakshadweep                        |                                 1.01 |
| 20        | Madhya Pradesh                     |                               111.08 |
| 21        | Maharashtra                        |                               318.62 |
| 22        | Manipur                            |                                 6.41 |
| 23        | Meghalaya                          |                                 9.23 |
| 24        | Mizoram                            |                                10.67 |
| 25        | Nagaland                           |                                16.52 |
| 26        | Odisha                             |                                75.28 |
| 27        | Puducherry                         |                                 6    |
| 28        | Punjab                             |                                93.15 |
| 29        | Rajasthan                          |                                43.95 |
| 30        | Sikkim                             |                                12.87 |
| 31        | Tamil Nadu                         |                               164.3  |
| 32        | Telangana                          |                                90.36 |
| 33        | Tripura                            |                                18.21 |
| 34        | Uttar Pradesh                      |                               240.39 |
| 35        | Uttarakhand                        |                                27.45 |
| 36        | West Bengal                        |                                 6.28 |
| Total     | Total                              |                              2197.2  |