PM Formalisation of Micro Food Processing Enterprises (PMFME Scheme)

The PM Formalisation of Micro Food Processing Enterprises (PMFME Scheme) is a centrally sponsored scheme launched by the Ministry of Food Processing Industries (MoFPI), Government of India. As part of the ‘Atmanirbhar Bharat’ campaign, its main objective is to strengthen and formalize the unorganized food processing sector.

Key Features

• Subsidy: A subsidy of 35% of the eligible project cost is provided, with a maximum limit of ₹10 lakh per unit.
• One District One Product (ODOP): A specific product is selected for each district (e.g., Mango for Ratnagiri). Special preference is given to industries based on these products.
• Seed Capital: Seed capital of ₹40,000 per member is provided to members of Self-Help Groups (SHGs) for working capital and small tools.
• Interest Subvention: If this loan is linked with the ‘Agriculture Infrastructure Fund’ (AIF), an interest subvention of up to 3% can be obtained, potentially bringing the effective interest rate down to around 6%.

Eligibility Criteria

• Age and Education: The applicant must be at least 18 years old and must have passed at least the 8th standard.
• Beneficiary Types: Individual entrepreneurs, Farmer Producer Organizations (FPOs), Self-Help Groups (SHGs), and cooperative societies can benefit from this scheme.
• Family Limit: Only one person per family can benefit from this scheme.
• Experience: This scheme is only for industries in the manufacturing sector related to food processing; it is not applicable for trading (buy-sell only) businesses.

Required Documents

• Aadhaar Card and PAN Card
• Educational Qualification Certificate (8th standard or above)
• Bank Passbook and Bank Statement for the last 6 months
• Detailed Project Report (DPR)
• Proof of Premises (Rental agreement or ownership rights)

Application Process

1. Online Registration: Register as an applicant on the official PMFME portal (https://pmfme.mofpi.gov.in/).
2. Fill the Form: After logging in, select ‘Apply Online’ and fill in personal and business information.
3. Assistance: You can take help from the district’s ‘Resource Person’ for the application or for preparing the project report.
4. Approval: After recommendation from the District Level Committee, the bank approves the loan proposal, and subsequently, the subsidy benefit is provided.