Pradhan Mantri Formalisation Of Micro Food Processing Enterprises

Aims:

1. Enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector; and
2. Support Farmer Producer Organizations (FPOs), Self Help Groups (SHGs), and Producers Cooperatives along their entire value chain.

Objectives:
To build the capability of microenterprises to enable:

1. Increased access to credit by existing micro food processing entrepreneurs, FPOs, Self Help Groups, and Co-operatives.
2. Integration with an organized supply chain by strengthening branding & marketing.
3. Support for the transition of existing 2,00,000 enterprises into a formal framework.
4. Increased access to common services like common processing facilities, laboratories, storage, packaging, marketing, and incubation services.
5. Strengthening of institutions, research, and training in the food processing sector; and
6. Increased access for the enterprises, to professional and technical support.

Outlay:
The scheme envisages an outlay of ₹ 10,000 crores over a period of five years from 2020-21 to 2024-25. The expenditure under the scheme would be shared in a 60:40 ratio between Central and State Governments, in a 90:10 ratio with the North
In Eastern and the Himalayan States, a 60:40 ratio with UTs with the legislature and 100% by the Center for other UTs.

Coverage:
Under the scheme, 2,00,000 micro food processing units will be directly assisted with credit-linked subsidies. Adequate supportive common infrastructure and institutional architecture will be supported to accelerate the growth of the sector.

Eligibility criteria for individual micro-enterprises:

1. Existing micro food processing units in operations.
2. Existing units should be those identified in the SLUP for ODOP products or by the Resource Person on physical verification. In the case of units using electrical power, the electricity bill would support it being in operation. For other units, existing operations, inventory, machines, and sales would form the basis.
3. The enterprise should be unincorporated and should employ less than 10 workers.
4. The enterprise should preferably be involved in the product identified in the ODOP of the district. Other micro-enterprises could also be considered.
5. The applicant should have ownership rights of the enterprise.
6. Ownership status of the enterprise could be proprietary / partnership firm.
7. The applicant should be above 18 years of age and should possess at least VIII standard pass educational qualification.
8. Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse, and children.
9. Willingness to formalize and contribute10% of project cost and obtain Bank loan.
10. Cost of the land should not be included in the Project cost. The cost of the ready-built, as well as the long lease or rental workshed, could be included in the project cost. The lease rental of the workshed to be included in the project cost should be for a maximum period of 3 years only.

Eligibility Criteria for Co-operatives/FPOs:

1. It should preferably be engaged in the processing of ODOP produce.
2. It should have a minimum turnover of Rs.1 crore.
3. The cost of the project proposed should not be larger than the present turnover.
4. The members should have sufficient knowledge and experience in dealing with the product for a minimum period of 3 years.
5. The cooperative/FPO should have sufficient internal resources or sanction from the State Government to meet 10% of the project cost and margin money for working capital.

Eligibility Criteria for Seed Capital for SHGs:

1. Only SHG members that are presently engaged in food processing would be eligible.
2. The SHG member has to commit to utilizing this amount for working capital and purchase of small tools and give a commitment in this regard to the SHG and SHG federation.
3. Before providing the seed capital, SHG Federation should collect the following basic details for each of the members:
   a) Details of the product being processed.
   b) other activities are undertaken.
   c) Annual turnover.
   d) Source of raw materials and marketing of produce.

Eligibility Criteria for Credit Linked Grant for Capital Investment for SHGs:

1. The SHGs should have sufficient own funds for meeting 10% of the project cost and 20% margin money for working capital or sanction of the same as a grant from the State Government.
2. The SHG members should have a minimum period of 3 years of experience in the processing of the ODOP product.

Eligibility Criteria for Branding and Marketing Support:
The proposals should fulfill the following conditions: –

1. The proposal should relate to ODOP.
2. Minimum turnover of product to be eligible for assistance should be Rs 5 crore.
3. The final product should be the one to be sold to the consumer in the retail pack.
4. Applicant should be an FPO/SHG/cooperative/ regional – State levels SPV to bring a large number of producers together.
5. Product and producers should be scalable to larger levels.
6. Management and entrepreneurship capability of promoting entity should be established in the proposal.

Eligibility Criteria for Support to National Institutions for Capacity Building & Research:
At the National level, the National Institute for Food Technology Entrepreneurship and Management (NIFTEM) and the Indian Institute of Food Processing Technology (IIFPT) would be eligible.

Eligibility Criteria for Support to State-Level Technical Institutions for Capacity Building & Research:
The State Level Technical Institution should be an existing institution involved in food processing technology. This Institute could be:

1. A college/institute under State Agriculture University or any other University.
2. A State-owned food processing technology research Institute.
3. An institute under CSIR or any Government of India institute focusing on food processing.
4. If it is a college, it should have undergraduate/postgraduate courses in food processing technology and the necessary faculty.
5. The Institute should have a full-fledged laboratory with necessary testing and processing equipment.
6. The Institute should have faculty undertaking research work and product development and machinery for food processing, especially for MSMEs.
7. The proposal should be recommended by the State Government.
8. The Institute should be willing to appoint a Nodal Officer and a dedicated team consisting of at least two faculty members focusing exclusively on the Scheme.
9. The Institute should have sufficient built-up space to undertake training for beneficiaries under the Scheme.
10. The institute preferably should have pilot plants for processing a few products under ODOP for the State.

Step 1:
Visit https://pmfme.mofpi.gov.in/pmfme/#/Home-Page
Click on “Login”, then click “Applicant Login”. You will be redirected to the login screen of the application.
If you are an existing user, select the “Beneficiary Type”, provide your “User ID” and “Password” and click “Submit”.
Once validated, you will be able to enter the website.

Step 2:
If you are a new user and want to register for the scheme, click on “Sign Up”. The “NEW USER REGISTRATION” form will open.
Provide the following mandatory details (as per the Aadhaar Card):
Select the type of Beneficiary: Individual / Group Application / Common Infrastructure Application
Further, if you have selected either “Group Application” or “Common Infrastructure Application”, choose the type of “Non-Individual” Application:
Cooperative Society / Farmer Producer Companies (FPC/FPO) / Self Help Groups (SHG)

• Name (नाम)
• Email ID (ईमेल आईडी)
• Mobile Number (मोबाइल नंबर)
• Address (पता)
• State (राज्य)
• District (जिला)

Step 3:
Click on “Register”. You will be registered for the PMFMFPE scheme.
You shall receive an email over the registered email ID with the username and password. A notification regarding the successful registration will also be obtained on the registered mobile number.

Apply for the PMFMFPE Scheme –

Step 1:
Use your login credentials to login into the system.
On the next screen, select your role:
Individual New Food Processing Enterprise
Individual Applicant (Present Business Turnover more than ₹ 1,00,00,000)
Individual Applicant (Present Business Turnover less than ₹ 1,00,00,000)
Step 2:
Select the desired option and click “Submit”. On the Confirmation Pop-Up, select “Yes”.
You will be directed to the applicant’s dashboard.
On the Left Pane, you can see three options: Home / Apply Online / Guidelines and Instructions.
You can either click “Guidelines and Instructions” to read and download the scheme guidelines, else you can directly click “Apply Online”.
Step 3:
On clicking “Apply Online”, you will be directed to the application form. The form consists of seven sections – Applicant Details, Existing Enterprise, Proposed Business Details, Financial Details, Lending Bank, Upload Documents, Declaration, and Submit.
Step 4:
Provide all the mandatory details, upload the required documents in the format, check the declaration and click “Submit” to submit the application form. The notification regarding the successful application submission will be shown on the screen. The same will also be received at the registered email id of the user.

Source(s):
User Manual (English): blob:https://pmfme.mofpi.gov.in/2f07ed0d-1309-4a40-9b70-ebe99d8d8eba
User Manual (Hindi): blob:https://pmfme.mofpi.gov.in/f6323fc0-e335-4ce2-bffb-e593963d35d2