PM FME scheme is launched; to generate total investment of Rs 35,000 crore, 9 lakh employment2 min read

By- Tanisha Pandey

The expense under the scheme would be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% expenditure by Centre for other UTs.

This Scheme will also generate 9 lakh semi-skilled and skilled employees and will benefit 8 lakh units through pierce to training, information, formalization, and better exposure.

On 29 July the Minister of Food Processing Industries, Harsimrat Kaur Badal launched the PM Formalization of Micro Food Processing Enterprises (FME) as a part of ‘Atma-nirbhar Bharat Abhiyan’.

While Highlighting the role of local food processing units, Union Minister said that food products manufactured by the rural entrepreneurs in the villages have a long tradition of supplying Indian food products to the local population.

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The objectives of the scheme:

This scheme has been launched by the government to provide support to the local unorganized food units in rural India. The scheme aims at generating employment as well as to benefit 8 lakh units across the country to increase the productivity in quantity as well as in quality. This scheme will work on the up-gradation of the existing micro food processing enterprises

Facts of PM FME Scheme:

The Ministry of Food Processing Units (MoFPI) has launched an All India centrally sponsored scheme that will be implemented over five years from FY21 to FY25 with a budget of Rs. 10,000 crore.

Support would be provided through a credit-linked grant of 35% for development of common infrastructure including common processing facility, lab, warehouse, cold storage, packaging and incubation centre through FPOs/SHGs/cooperatives or state-owned agencies or private enterprise to use by micro-units in the cluster. Support for marketing & branding would be provided to develop brands for micro-units and groups with 50% grant at State or regional level which could benefit a large number of micro-units in clusters.