The Union Cabinet vide its notification dated 20th May 2020 has approved a new Scheme for Formalisation of Micro food processing Enterprises (FME) for the Unorganized Sector amounting to Rs 10,000 crore.
The scheme aims to increase access to finance by micro food processing units with a special focus on women entrepreneurs and aspirational districts. It lays focus on Enhanced compliance with food quality and safety standards and minor forest produce in Tribal Districts.
The Scheme will be implemented over a 5 year period from 2020-21 to 2024-25. 2,00,000 micro-enterprises will be assisted with credit linked subsidy at 35% of the eligible project cost with a ceiling of Rs.10 lakh and the beneficiary contribution will be a minimum 10% and balance from the loan.
The Scheme would be monitored at Centre and State/ UT Level Committee chaired by the Chief Secretary which sanction/recommend proposals for expansion of micro-units and set up of new units by the SHGs/ FPOs/ Cooperatives.
Click here to read the Notification.
