Bihar Leads in Implementing PMFME Scheme
Bihar has emerged as a leader in the successful implementation of the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme for the financial year 2024-25. The state’s industries minister, Nitish Mishra, announced that 10,296 applicants received loan approvals. Out of these, 6,589 units benefited from disbursed loans, representing 63% of total distributions. This achievement is expected to boost industry and employment in Bihar.
PMFME Scheme
The PMFME scheme aims to formalise the unorganised food processing sector in India. It provides financial assistance to micro food processing units to enhance their competitiveness. The scheme is operational from 2020-21 to 2025-26, with a total outlay of Rs 10,000 crore.
Financial Assistance Structure
The PMFME scheme offers credit-linked subsidies to individual and group units. Individual micro food processing units can receive a 35% subsidy on project costs, capped at Rs 10 lakh. The beneficiary must contribute at least 10% of the total investment.
Support for Group Units
For group units like Farmer Producer Organisations (FPOs) and self-help groups (SHGs), a similar subsidy of 35% applies, with a maximum of Rs 3 crore. These groups also must contribute a minimum of 10% towards the project cost.
Common Facility Centres
The scheme supports the establishment of Common Facility Centres for FPOs, SHGs, and cooperatives. This initiative aims to enhance general infrastructure and operational capabilities within the food processing sector.
Beneficiary Categories
The PMFME scheme caters to various beneficiaries, including entrepreneurs, private firms, cooperatives, NGOs, and SHGs. This diversity allows for a broad impact across the food processing industry.
Objectives of the Scheme
Key objectives include increasing access to finance for micro food processing units, improving revenue for target enterprises, and enhancing compliance with food safety standards. The scheme also focuses on empowering women entrepreneurs and supporting aspirational districts.
Implementation Period and Goals
The PMFME scheme is set to assist 200,000 micro-enterprises over its five-year implementation period. The financial model involves a 60:40 expenditure sharing ratio between the Government of India and state governments.
Skill Training and Handholding Support
The scheme includes provisions for on-site skill training and technical support. This ensures that beneficiaries are equipped with necessary skills and knowledge to successfully manage their enterprises.
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