PM FME scheme was launched to promote the formalisation of micro-enterprises and increase the competitiveness of currently operating individual micro businesses in the unorganised sector of the food processing industry.
Overview of PM FME Scheme
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME Scheme is a crucial initiative launched on 29th June 2020 as part of the Atmanirbhar Bharat Abhiyan.
Launch Date:
PM FME was officially launched on 29th June 2020.
Atmanirbhar Bharat Abhiyan:
The scheme is a key component of the Atmanirbhar Bharat Abhiyan, aimed at promoting self-reliance and boosting the Indian economy.
Centrally Sponsored Scheme:
PM FME operates as a centrally sponsored scheme.
Share of Expenditure:
The expenditure under the PM FME scheme is shared between the central government and state governments/Union Territories (UTs) with legislatures in the following ratios:
60:40 for central government and state governments/UTs with legislatures.
90:10 for central government and North Eastern and Himalayan states.
100 percent central assistance for UTs without legislatures.
Duration:
The PM FME scheme is designed to run for five years, covering the period from 2020-21 to 2024-25.
Funding Arrangement for the First Year:
In the first year, the central government bears the expenditure, regardless of who incurs it. Subsequently, the expenses are adjusted based on the aforementioned sharing ratios in the following four years.
Project Implementation Plan (PIP):
The central government provides funds to states based on the approved Project Implementation Plan (PIP).
One-District One-Product Approach (ODOP):
The PM FME scheme incorporates the One-District One-Product Approach (ODOP). This approach focuses on the implementation of plans covering input procurement, availability of common services, and product marketing.
Inter-Ministerial Empowered Committee (IMEC):
The Inter-Ministerial Empowered Committee (IMEC) is established at the national level to oversee the implementation of PM FME. The structure of IMEC is as follows:
- Chairman: Minister of Food Processing Industries.
- Vice-Chairman: Minister of State of Food Processing Industries.
- Member-Secretary.
- Members.
The PM FME scheme, with its comprehensive approach and strategic funding arrangements, aims to formalise and strengthen micro-food processing enterprises in India, contributing to economic growth, job creation, and self-sufficiency.
Login Procedure
The whole procedure for logging into the PM FME Portal online is listed below:-
- First, go to https://pmfme.mofpi.gov.in/pmfme/#/Home-Page, the PM FME Scheme’s official website
- Scroll over the “Login” button and select “Applicant Login”
- Here, choose the beneficiary type from among the individual, group, or common infrastructure applications. Then, to log into the PM FME Scheme, enter your User ID and password and press the “Submit” button.
Benefits of the PM FME for Food Processing Units
| Beneficiaries covered by PM-FME | Benefits |
| Branding and marketing | Up to 50% of expenses with a prescribed upper limit |
| Common infrastructure | Grant with a credit component of 35% of the project cost and a set maximum |
| A person who processes food | Working capital of ₹40,000 is supplied as seed capital |
| Cooperatives/SHGs/FPOs | Grants having a credit component that is capped at 35% of project costs for capital expenses |
| Unorganised Food Processing Units Currently Existing | a grant with a maximum of ₹10 lakhs |
Applying for the PM FME Scheme
If you are a micro food processing enterprise in India and meet the eligibility criteria for the PM FME (Prime Minister’s Formalization of Micro Food Processing Enterprises) Scheme, you can apply for the scheme by following a few simple steps.
Firstly, you will need to gather the necessary documents required for the application process. These documents include a valid Udyog Aadhaar Number (UAN), FSSAI registration certificate, PAN card, and bank account details. You may also need to provide additional documents such as proof of ownership or lease agreement for the business premises, and details of the proposed project for which you are seeking financial assistance.
Once you have gathered all the necessary documents, you can submit an application for the FME Scheme. The application process for the scheme is online, and you can apply through the official website of the Ministry of Food Processing Industries (MOFPI). The website provides a step-by-step guide on how to apply for the scheme, along with the necessary forms and guidelines.
When submitting your application, it is important to ensure that all the information provided is accurate and complete. Incomplete or incorrect applications may be rejected, and this can delay the processing of your application.
The timeframes for applying for the FME Scheme may vary depending on the specific guidelines issued by the MOFPI. It is important to check the official website of the MOFPI regularly for updates on the scheme and any changes to the application process or deadlines.
Renewing the PM FME Scheme
The PM FME (Prime Minister’s Formalization of Micro Food Processing Enterprises) Scheme is designed to provide support to micro food processing enterprises in India, and it does not require renewal in the traditional sense. Once an enterprise has been approved for the scheme and has availed the benefits, there is no specific renewal process for the scheme itself.
However, it’s important for enterprises to comply with any reporting or documentation requirements outlined by the Ministry of Food Processing Industries (MOFPI) or other relevant authorities. This may include submitting periodic progress reports, financial statements or other documentation to demonstrate the effective utilisation of the scheme’s benefits and the impact on the enterprise’s operations.
In terms of documents required for compliance or reporting, enterprises may need to provide details such as financial statements, utilisation certificates for the funds received and any other documentation specified by the MOFPI.
There is no fee to renew the PM FME Scheme, as it is a government initiative aimed at supporting micro food processing enterprises and does not involve any renewal fees.
As for the renewal timeline, enterprises should adhere to any reporting or documentation deadlines set by the MOFPI or other relevant authorities. It’s important to stay informed about any updates or changes to the reporting requirements to ensure compliance with the scheme’s guidelines.
Cancellation of PM FME Scheme
Cancellation of the PM FME (Prime Minister’s Formalization of Micro Food Processing Enterprises) Scheme is not a common occurrence, as the scheme is designed to support micro food processing enterprises in India. However, in the event that an enterprise wishes to cancel its participation in the scheme, there are certain processes and restrictions to be aware of.
The process to cancel the PM FME Scheme may vary depending on the specific circumstances and reasons for cancellation. Enterprises should contact the Ministry of Food Processing Industries (MOFPI) or other relevant authorities to discuss the cancellation process and any requirements or documentation needed.
There is no fee to cancel the PM FME Scheme, as it is a government initiative aimed at supporting micro food processing enterprises and does not involve any cancellation fees.
The timeframes to cancel the PM FME Scheme may also vary depending on the specific circumstances and reasons for cancellation. Enterprises should contact the MOFPI or other relevant authorities as soon as possible to discuss the cancellation process and any deadlines or requirements.
Requirements of PM FME Scheme
In terms of the requirements of the PM FME Scheme, eligible enterprises must meet certain eligibility, compliance, financial, reporting, and penalty requirements.
Components of the Scheme
- Support for individual and collective micro businesses
- Help with branding and marketing
- Support for institution strengthening
- Establishing a project management framework for progress.
Through the PM FME plan, organisations and groups including farmer producer organisations, producer cooperatives, and self-help groups, would receive support for their whole value chain. Support will be given for activities such as sorting, grading, storing and processing, packaging, marketing, and processing of agricultural produce. A sum of money at a rate of 35% with a credit connection will be made available for this purpose. Other than that, this programme will also offer training help. In these situations, the maximum grant would be as specified.
Training Assistance under the Scheme
Individual units and groups that get help for capital investments under the PM FME plan will also receive training support. Additionally, existing units and groups in the area that are generating one district-one product will receive training support. Support for training will be given to the group receiving assistance with marketing and branding. The Department of Skill Development and Entrepreneurship has established a fixed hourly tariff that will be used for training. Online learning modules will be used to deliver the instruction. These modules will be quick to complete. Weekly training sessions using these modules will be offered, with the district providing audio-visual assistance.
Eligibility Requirements for Individual Micro Businesses
- The company must carry out food processing operations
- The small business should be operating
- This programme is only available to one member of each family
- The applicant should not be a minor
- The applicant must have completed at least the eighth grade
- Only partnerships or sole proprietorships are eligible to benefit from this plan
- It is a requirement that the applicant is the Enterprise’s legal owner
- The business should be engaged in the district-specific product that has been defined. Other units can also be taken into account
- The business should have been incorporated, and it should have at least 10 employees.
- The project’s total price shouldn’t include the cost of the land
- Worksheet for including ready-built costs in projects with extended leases or rentals
- A maximum of three years should pass between the lease rental of the workshed and the project cost
- The business owner must be willing to finance 10% of the project’s costs using bank loans.
Conclusion
Of the 25 lakh units, 75% are in the unorganised food processing industry. Around 80% of these family-based businesses are located in rural areas, where they support the livelihood of rural households and prevent their emigration to metropolitan areas. They are 66% established there. These companies are largely considered micro businesses. The difficulties this industry of food processing encounters have prevented it from performing and growing as expected. These problems include a lack of access to modern tools and technology, training, institutional loan availability, lack of fundamental knowledge of product quality control, lack of marketing and branding expertise, etc.
Once everything is in order, you may begin producing. Don’t let all the legal tasks intimidate you; they can sound difficult. If you need assistance with any of these get in touch with Vakilsearch.
FAQs
Who qualifies for the PM FME programme?
The applicant must be at least eighteen years old and have completed grades up to the eighth standard. Financial aid would only be available to one member of each family. In this context, family refers to the self, the spouse, and the kids.
Which bank has been designated as the Pm FME's nodal bank?
The Ministry of Food Processing Industries has designated the Union Bank of India as a nodal bank for the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PM FME) scheme.
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