Daily Current Affairs - June 30,2020
On 29th June, 2020 Union food processing Minister, Harsimrat Kaur Badal launched the Prime Minister Formalization of Micro Food Processing Enterprises(PM FME) scheme. The scheme is launched as part of the Atma Nirbhar Bharat Abhiyan.
Aim of the scheme
The scheme aims to provide financial, technical and business support for upgradation of existing micro food processing enterprises.. It also 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 crore, 900,000 jobs and help 800,000 units.
- The scheme will offer 50% subsidy for storage and transportation to prevent distress sale by farmers.
- Nearly 200,000 micro enterprises will get credit-linked subsidy support.
- Under this scheme, micro-enterprises will get 35% subsidy on project cost, with a ceiling of Rs 10 lakh.
- The beneficiaries will have to contribute at least 10% of the project cost while the balance will come from loan.
- The expenditure under the PM FME Scheme would be shared in 60:40 ratio between Central and State Government.
- The expenditure under the PM FME Scheme would be shared in 90:10 ratio between Central and North Eastern and Himalayan States.
- The expenditure under the PM FME Scheme would be shared in 60:40 ratio between Central and UT,s with legislature.
- The expenditure under the PM FME Scheme would be shared 100% by Central Government for other Union Territories.