Recently, the Ministry of Food Processing Industries launched the Seed Capital Module under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME). The module was established to offer assistance to Self Help Groups (SHGs) in India.
About The Seed Capital Module and Its Implementation
The initiative was introduced on the Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) Management Information System (MIS) Portal. The portal will be used to provide seed capital assistance to members of urban Self Help Groups engaging in the food processing sector across the country. Seed capital stands for the initial fund raised to develop a business idea or a new product, which the SHGs can access through this portal.
To ensure productive utilization of these funds, SHG members will be informed about the PMFME scheme and encouraged to avail benefits such as buying small tools and other working capital needs.
The PMFME Scheme And Its Objectives
A Centrally Sponsored Scheme, the PMFME is part of the Atmanirbhar Bharat Abhiyan, which was launched with the intention to enhance the competitiveness of the unorganized segment of the food processing industry in India.
The scheme aims to promote formalization of the sector and support Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives across their value chain. With a budget allocation of Rs.10,000 crore from 2020-21 to 2024-25, it plans to directly aid 2,00,000 small food processing units, providing financial, technical, and business support for their improvement.
Benefits Offered under the PMFME Scheme
SHG members are eligible for several benefits, including capital aid of Rs. 40,000 per member and a credit linked subsidy for capital investment up to 35% with a maximum limit of Rs. 10 lakh. There is also provision for a credit linked grant support up to 35% for establishing shared infrastructure.
In addition, they will be given assistance for Detailed Project Report (DPR) preparation, as well as capacity building and training support.
Other Government Schemes Available for SHGs
There are several other government initiatives aimed at supporting SHGs such as the Government e-marketplace, Agriculture Infrastructure Fund, Pradhan Mantri Matsya Sampada Yojana (PMMSY), Ambedkar Hastshilp Vikas Yojana (AHVY), North East Rural Livelihood Project, Mahila e-haat Women Entrepreneurship Platform (WEP).
About DAY-NULM
A Centrally Sponsored Scheme launched in 2014, DAY NULM aims to uplift urban poor by providing sustainable livelihood opportunities through skill development. Its intended beneficiaries include the urban poor (street vendors, slum dwellers, homeless, rag pickers), unemployed, and differently-abled individuals. It offers skill training and employment to these individuals and provides subsidies for setting up micro-enterprises.
Last Modified: February 13, 2024