News:Union Cabinet has given its approval to Scheme for Formalization of Micro Food Processing Enterprises for the unorganised sector on all India basis with an outlay of Rs.10,000 crore.
- Type: Centrally Sponsored Scheme with expenditure to be shared by Government of India and states at 60:40.
- Duration: It will be implemented over a 5 year period from 2020-21 to 2024-25.
- Under the scheme:
- 2,00,000 micro-enterprises will get credit linked subsidy at 35% of the eligible project cost with ceiling of Rs. 10 lakh.
- Beneficiary contribution will be minimum 10% and balance from loan.
- Seed capital will be given to SHGs (Rs. four lakh per SHG) for loan to members for working capital and small tools.
- Grant will also be provided to farmer producer organisations (FPO) for backward and forward linkages, common infrastructure, packaging, marketing and branding.
- Cluster approach will be there with focus on perishables.
- Administration and Implementation mechanisms:
- The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee(IMEC) under the Chairmanship of Minister for Food Processing Industries.
- State/ UT nodal agency(SNA) would be responsible for the implementation of the scheme.
- A State Level Committee(SLC) chaired by the Chief Secretary will monitor and sanction proposals for expansion of micro units and setting up of new units by the SHGs/ FPOs/ Cooperatives.
- A third-party evaluation and mid-term review mechanism would be built in the programme.
- National level portal would also be set-up wherein the applicants/ individual enterprise could apply to participate in the Scheme. All the scheme activities would be undertaken on the National portal.