Nearly 66 % of these units are located in rural areas and about 80% of them are family-based enterprises.
There are about 25 lakh unregistered food processing enterprises which constitute 98% of the sector and are unorganized and informal. Increased access to common services like sorting, grading, processing, packaging, storage etc. Better integration with organized markets. Scheme envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs and entrepreneurs in the Aspirational Districts. The project is likely to generate nine lakh skilled and semi-skilled jobs. It will enable them to formalize, grow and become competitive. Credit linked subsidy support and hand-holding will be extended to 2,00,000 micro enterprises for expansion and upgradation. Nearly eight lakh micro- enterprises will benefit through access to information, better exposure and formalization. The Scheme would attempt to fill in the gaps, where support is not available from other sources, especially for capital investment, handholding support, training and common infrastructure. Support from the existing schemes under implementation by the Government of India and State Governments would be availed under the scheme. All the scheme activities would be undertaken on the National portal. A National level portal would be set-up wherein the applicants/ individual enterprise could apply to participate in the Scheme. State/ UT Nodal Agency (SNA) would be responsible for implementation of the scheme at the State/ UT level including preparation and validation of State/ UT Level Upgradation Plan, Cluster Development Plan, engaging and monitoring the work of resource groups at district/ regional level, providing support to units and groups, etc. The State/ UT Government will notify a Nodal Department and Agency for implementation of the Scheme. A third party evaluation and mid-term review mechanism would be built in the programme. The States/ UTs will prepare Annual Action Plans covering various activities for implementation of the scheme, which will be approved by Government of India. A State/ UT Level Committee (SLC) chaired by the Chief Secretary will monitor and sanction/ recommend proposals for expansion of micro units and setting up of new units by the SHGs/ FPOs/ Cooperatives. The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Minister, FPI. Grant will be provided to FPOs for backward/forward linkages, common infrastructure, packaging, marketing & branding.Īdministrative and Implementation Mechanisms. Seed capital will be given to SHGs 4 lakh per SHG) for loan to members for working capital and small tools. Back ended credit linked subsidy will be provided to 2,00,000 units. The scheme will be rolled out on All India basis. 
Grant for backward/ forward linkages, common infrastructure, packaging, marketing & branding.Seed capital to SHGs for loan to members for working capital and small tools.On-site skill training & Handholding for DPR and technical upgradation.Beneficiary contribution will be minimum 10% and balance from loan.Micro enterprises will get credit linked subsidy 35% of the eligible project cost with ceiling of Rs.10 lakh.Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.2,00,000 micro-enterprises are to be assisted with credit linked subsidy.Expenditure to be shared by Government of India and States at 60:40. Focus on minor forest produce in Tribal Districts.Special focus on women entrepreneurs and Aspirational districts.Transition from the unorganized sector to the formal sector.Strengthening capacities of support systems.Enhanced compliance with food quality and safety standards.
Increase in revenues of target enterprises.Increase in access to finance by micro food processing units.The expenditure will be shared by GOI and the States in ratio of 60:40. The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to a new Centrally Sponsored Scheme - "Scheme for Formalisation of Micro food processing Enterprises (FME)" for the Unorganized Sector on All India basis with an outlay of Rs.10,000 crore.
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