Scheme Overview

The PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is a Centrally Sponsored Scheme launched by the Ministry of Food Processing Industries (MoFPI) under the Aatmanirbhar Bharat Abhiyan. It aims to address the challenges faced by the 2.5 crore unorganised micro food processing units, which constitute 98% of the sector, by facilitating their formalisation, technology upgradation, and access to credit.

Key Components

• Individual Micro Enterprises: Credit-linked capital subsidy at 35% of eligible project cost with a maximum ceiling of ₹10 lakh per unit for new or existing units.
• SHG Support: Seed capital of ₹40,000 per member for working capital and small tools, provided through the State Rural Livelihood Missions (SRLMs).
• FPO/Cooperative Support: Credit-linked grant at 35% for capital investment along the value chain.
• Common Infrastructure: Support for common processing facilities, labs, warehouses, and cold storage under the cluster approach.
• Branding & Marketing: Support for 10+ 'One District One Product' (ODOP) brands with 50% grant for marketing and branding.

Implementation Framework

The scheme operates on a 60:40 cost-sharing basis between Centre and States (90:10 for North Eastern and Himalayan States). Implementation is monitored through a dedicated PMFME portal with District Resource Persons (DRPs) facilitating handholding support for DPR preparation, FSSAI registration, and Udyam registration.

1. Portal Registration: Register on the official PMFME portal (pmfme.mofpi.gov.in) using mobile number and Aadhaar-based e-KYC.
2. District Resource Person (DRP) Engagement: Contact the assigned DRP for handholding support in preparing the Detailed Project Report (DPR) and documentation.
3. Application Submission: Fill the online application form on the portal, selecting the appropriate component (Individual, SHG, FPO, etc.) and uploading the DPR.
4. Document Upload: Upload mandatory documents including Aadhaar, PAN, bank account details, land/rent proof, caste certificate (if applicable), and FSSAI registration proof.
5. Verification & Recommendation: DRP and State Nodal Agency (SNA) verify the application, conduct site inspection, and recommend the case to the lending bank.
6. Bank Appraisal & Sanction: Bank appraises the project, sanctions the loan, and submits the subsidy claim on the portal.
7. Subsidy Release: Upon satisfactory completion of project and verification, the subsidy is released by the SNA to the bank for credit to the borrower's loan account.