The government of India has launched Pradhan Mantri Formalisation of Micro Food Enterprises (PM FME) scheme for micro enterprises which offers 50% subsidy for storage and transportation to prevent distress sale by farmers.
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Key-Points
It aims to bring in new technology, apart from affordable credit to help small entrepreneurs penetrate new markets.
The scheme will be implemented for five years until 2024-25. It will generate investment of Rs 35,000 core, generate 900,000 jobs and help 800,000 units.
This Centrally Sponsored Scheme will be implemented over a period of five years from 2020-21 to 2024-25 with an outlay of Rs 10,000 crore.
The expenditure under the scheme would to be shared in 60:40 ratio between Central and State Governments, in 90:10 ratio with North Eastern and Himalayan States, 60:40 ratio with UTs with legislature and 100% by Centre for other UTs.
Under the PM FME scheme, micro enterprises will get 35% subsidy on project cost, with a ceiling of Rs 10 lakh.
Under the scheme, meant for the unorganised sector, the expenditure will be shared by the central and state governments in the ratio of 60:40.
The ministry will provide the 50% subsidy for “transportation of eligible crops from surplus production clusters to consumption centres or hiring of appropriate storage facilities for eligible crops for a maximum period of three months.
The maximum subsidy amount per applicant will be Rs 1 crore during a six-month period, said the minister.
