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PMFME scheme

  • June 30, 2020
  • Posted by: admin1
  • Category: DPN Topics
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Subject: Schemes

Context:

Centre has launched aRs 10,000 crore scheme for micro enterprises

Concept:

Pradhan MantriFormalisation of Micro Food Enterprises (PM FME) aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.
Objectives:

  • Increase in access to finance by micro food processing units.
  • Increase in revenues of target enterprises.
  • Enhanced compliance with food quality and safety standards.
  • Strengthening capacities of support systems.
  • Transition from the unorganized sector to the formal sector.
  • Special focus on women entrepreneurs and Aspirational districts.
  • Encourage Waste to Wealth activities.
  • Focus on minor forest produce in Tribal Districts.

Salient features:

  • Centrally Sponsored Scheme. Expenditure to be shared by Government of India and States at 60:40.
  • 2,00,000 micro-enterprises are to be assisted with credit linked subsidy.
  • Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
  • Cluster approach.
  • Focus on perishables.

One District One Product

  • The Scheme adopts One District One Product (ODODP) approachto reap benefit of scale in terms of procurement of inputs, availing common services and marketing of products.
  • The States would identify food product for a district keeping in view the existing clusters and availability of raw material.
  • The ODOP product could be a perishable produce based product or cereal based products or a food product widely produced in a district and their allied sectors.
  • Preference would be given to those producing ODOP products. However, units producing other products would also be supported.
  • Support for common infrastructure and branding & marketing would be for ODOP products.
PMFME scheme Schemes
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