Cabinet approves scheme worth Rs 10,000 crore for micro food processing enterprises

New Delhi: The Union Cabinet on Wednesday authorised a brand new Scheme for Formalisation of Micro food processing Enterprises (FME) for the Unorganized Sector amounting to Rs 10,000 crore. 

The expenditure shall be shared by authorities and the states in 60:40 ratio, an official launch stated.

The scheme goals to Increase in entry to finance by micro food processing models with particular concentrate on ladies entrepreneurs and Aspirational districts. It additionally lays concentrate on minor forest produce in Tribal Districts.

The Scheme shall be applied over a 5 12 months interval from 2020-21 to 2024-25. 2,00,000 micro-enterprises shall be assisted with credit score linked subsidy.

Micro enterprises will get credit score linked subsidy of 35% of the eligible venture value with ceiling of Rs 10 lakh. Beneficiary contribution shall be minimal 10% and stability from mortgage.

Seed capital shall be given to of Rs four lakh per SHG shall be given for mortgage to members for working capital and small instruments.

Grant shall be offered to FPOs for backward/ahead linkages, frequent infrastructure, packaging, advertising & branding.

Strengthening this phase will result in discount in wastage, creation of off-farm job alternatives and assist in reaching the overarching Government goal of doubling farmers’ earnings, an official launch stated.

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