New Delhi [India], May 20 (ANI): The Union Cabinet on Wednesday approved a new centrally sponsored scheme for Formalisation of Micro food processing Enterprises (FME) for the unorganised sector with an outlay of Rs 10,000 crore.
The expenditure will be shared by the Union Government and the states in the ratio of 60:40.
Under the scheme, 2,00,000 micro-enterprises are to be assisted with credit linked subsidy for over a 5 year period from 2020-21 to 2024-25.
The scheme aims to increase in access to finance by micro food processing units with special focus on women entrepreneurs and aspirational districts and encourage waste to wealth activities. It also lays focus on minor forest produce in tribal districts.
Now the micro-enterprises will get credit-linked subsidy of 35 per cent of the eligible project cost with a ceiling of Rs 10 lakh. The beneficiary contribution will be minimum 10 per cent and balance from loan, an official release said.
Seed capital will be given of Rs 4 lakh per SHG will be given for loan to members for working capital and small tools, it added.
The grant will be provided to FPOs for backward/forward linkages, common infrastructure, packaging, marketing and branding.
Strengthening this segment will lead to reduction in wastage, creation of off-farm job opportunities and aid in achieving the overarching government objective of doubling farmers' income, the release said. (ANI)