New centrally sponsored scheme PM FME promotes micro food processing enterprises in Andaman & Nicobar Islands – Andaman Shekha

Port Blair, July 7: The Department of Industries, Andaman and Nicobar Administration is implementing a newly launched centrally sponsored scheme ‘Pradhan Mantri Scheme for Formalisation of Micro Food Processing Enterprises (PM FME)’ under Atmanirbhar Bharat Abhiyan which aims to strengthen backward/forward linkages, common infrastructure, packaging, branding and marketing of products of micro food processing enterprises. Under the scheme, financial assistance in the form of grants/seed capital will be provided to individuals/SHGs/cooperative societies/Farmer Producer Organisations (FPOs).
The scheme adopts a ‘One District One Product’ (ODOP) approach to harness the benefits of scale in terms of input requirements, availing common services and marketing of products. The ODOPs identified for South Andaman district include marine-based fish products and coconut-based products for Nicobar and North and Middle Andaman districts.
Components of the Scheme:
• Assistance to Individual Micro Enterprises: Credit-linked capital subsidy @ 35% of the eligible project cost, with a maximum limit of Rs. 10.00 lakh per unit. Beneficiary’s contribution should be a minimum of 10% of the project cost.

Group Category :
 Farmer Producer Organisations (FPOs)/Producer Cooperatives:
The following assistance will be provided to FPOs and producer cooperatives:
• Credit linked grant up to 35% of the project cost. Maximum limit will be as prescribed.
• Training assistance.
 Self Help Groups(SHGs)
i) Seed Capital: Seed capital of Rs. 40,000/- for each member of SHG for working capital and purchase of equipment
ii) Assistance to individual SHG member as a single unit of food processing industry with credit linked subsidy @ 35% up to a maximum limit of Rs. 10.00 lakh.
iii) Assistance for capital investment at Self Help Group federation level: Credit linked subsidy @ 35% and maximum subsidy will be as prescribed.
iv) Providing training and support to self-help groups

 Support for common infrastructure
Credit linked grant of 35% of the project cost for construction of the following common infrastructure
1. Premises for checking, sorting, grading, warehousing and cold storage of agricultural produce at farm-gate.
2. Common processing facility for processing ODOP products
3. Incubation Centre.

 Branding and Marketing Support:
Assistance for branding and marketing will be 50% of the total expenditure. The maximum limit of grant will be as prescribed.
eligibility criteria:
• Existing and new food processing units oriented towards ODOP and other products.
• Micro food processing enterprises with investment less than Rs 100 lakh.
• Should have credit linked support from scheduled banks and recognized financial institutions.
Interested individual entrepreneurs willing to set up food processing units under this scheme can apply online at For more information, they can contact the Directorate of Industries, Port Blair on phone number 03192-234360 or the branch office of the Industries Department on any working day between 9 am and 5 pm.

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