BANK PPT PMFME Prime Minister formalization

PM BANK PPT PMFME Prime Minister formalization of micro food processing enterprises scheme

1. PRADHAN MANTRI FORMALISATION OF MICRO FOOD PROCESSING ENTERPRISES SCHEME Presented by - Amol Chidrawar Agriculture Commissionerate Pune

2. Overview Food Processing is key sector under ‘Aatmanirbhar Bharat’ initiative of GoI Across the country, 25 lakh food processing enterprises are unregistered & informal With only 70% investment in P & M & 30% outstanding credit Contributes to 74% employment, 12% of output & 27% of value addition in FP Sector 66% of these units are located in rural areas & 80% of them are family-based Mostly falls under the category of Micro manufacturing units/ Food-processing Micro Enterprises (FME) Maharashtra has > 200000 unorganized and informal units in food processing, manufacturing food products such as pickle & murabba, gur , papad & allied products, fruit pulp/juice, bakery products, honey, snacks, etc.

3. Different Components Credit-linked capital subsidy @35% (Rs.10 lakh) Existing micro food processing units Support for common Infrastructure Seed capital of Rs 40,000/- to SHG members Support to individual and groups of micro enterprises; Branding and Marketing support; Support for strengthening of institutions; Monitoring & evaluation Project management support Convergence & handholding Setting up robust project management framework To groups of FPOs/SHGs/Cooperatives or an SPV of micro food processing enterprises Limited to 50% of the total expenditure Capacity Building & Research – Institutes in partnership with State Level Technical Institutions Training & Support to SLTIs

4. Aims & Objectives Increased access to common infrastructure, marketing & branding 2,00,000 enterprises to be benefitted by this scheme Benefits to FPOs, Self Help Groups and Co-operatives Integration with organized supply chain Increased access to credit by micro- enterprises Strengthening of institutions, research and training – technical support & handholding Special focus on women entrepreneurs and Aspirational districts Cluster Approach – One District One Product – Focus on perishables Credit linked capital subsidy & Seed capital to SHGs 2020-21 to 2024-25. PM FME Scheme

5. Challenges Challenges of unorganized/ informal food processing units Lack of basic awareness on good hygienic and manufacturing practices

6. Modifications in the guidelines of PMFME Support to individual Micro Enterprises  Component Particular Remark Eligibility Individual Proprietorship firms Partnership firms FPO (Farmer Producer Organization) NGO(Non-Government Organization) SHG (Self Help Group) Co-op (Cooperative) Pvt Ltd. Companies.  For SHGs/FPOs/Coop, there is no requirement of minimum Turnover and Experience. Age and Qualification Above 18 Years , no minimum educational qualification Relaxing minimum educational qualification criteria Eligible enterprise Existing Enterprise – Both ODOP & Non-ODOP. New Enterprise – Both ODOP & Non-ODOP. Proposal for both ODOP and non ODOP are eligible for support ODOP Proposals will be preferred  

7. Support to individual Micro Enterprises  Component Particulars Remark Financial Support / Assistance For all- Individual/Proprietorship / Partnership /FPO/NGO/SHG/ Co-op / Pvt Ltd. Companies- credit linked capital subsidy @35% of eligible project cost max Rs.10.00 Lac for eligible projects. Eligible project cost comprises cost of plant & machinery and technical civil work but excludes any cost of land/rental or lease work shed . Technical Civil Work should not be more than 30% of the eligible project cost. For SHGs/FPOs/Coop and other eligible organisations, the eligible project cost is not related to the existing Turnover of the Enterprise. Restructuring of loan by bank Restructuring by bank for stressed unit is allowed for upgradation/expansion. Qualifying for restructuring by bank for up gradation / Expansion

8. Support to individual Micro Enterprises  Component Particulars Convergence Applicant is also eligible for Interest Subvention and Top Up convergence with other relevant Govt Sponsored Schemes. Beneficiaries availing support under other Govt Schemes Applicant/enterprise is eligible for bank loan under the Scheme, even if he has availed bank loan in other Subsidy Linked Schemes of Govt. Working Capital Finance Lending Banks may consider sanctioning need based working capital limit to the beneficiaries, as admissible. However, no subsidy would be provided on the working capital.

9. Support to Group Category for Setting up of Common Infrastructure  Components Particulars Remark Eligible organization FPOs/FPCs Co-op (Cooperatives) SHGs (Self Help Groups) /and its federation Govt. agencies.   Turnover No pre condition.   Experience No pre condition.   Product Proposal for ODOP or Non-ODOP are eligible for assistance. However ODOP proposals would be preferred. Support to both ODOP and as well as Non -ODOP. Support / Assistance Credit linked capital subsidy @35% of eligible project cost with max ceiling of Rs.3.00 crore.

10. Authorities of PMFME Scheme Nodal Department – Maharashtra state have selected Department of Agriculture as a Nodal Agency. SNA – Department of agriculture Govt of Maharashtra has given a responsibility to run PMFME scheme to Agro Processing and Planning Pune. DNO – District Nodal agency or District Level Committee – The committee is chair by Hon District collector, and all district level decision are taken at DLC level. SPMU – State Project Management Unit , appointed by SNA for to assist SNA for smooth execution of scheme at all level. DRP – District resource person appointed at district level by DLC to bridge gap between applicant to sanction.

11. List - activities not eligible for assistance under the scheme. Trading and selling of unprocessed Millets/Cereals/Spices etc. Unprocessed or Loose Milk (Selling of Milk/Curd) Trading and selling of fruits and vegetables Trading and selling of unprocessed Minor Forest Product Bee Keeping/Loose selling of Honey Loose selling, trading and repacking of oil Trading and selling of groundnut, Arecanut (Exception: Any proposal for export variety would be reviewed on case to case basis. State Government to take prior approval from MoFPI for such cases.) Poultry, Piggery, Goatry or any other rearing activity of animals Trading and selling of fresh Fish/ meat/chicken etc., Repacking of manufactures products Canteen , grocery, hotel, tiffin services, restaurants or any other food services enterprises

12. How Strong are PMFME Proposals. – Pre Sanctions Automated Detailed Project Report. Only Viable projects are generated through system. Applications are carefully filled by DRP Most of the DRP being technical expert , proposals are technically sound. Spot verification is done to authenticate applicant and his seriousness towards project. Two stage reviewing before bank. Assured 35% credit linked subsidy against first crunche of disbursement. Applicable for TOP UP/ Convergence/ CGTMSE and Mudra. Benefit can be given for expansion of project for existing units availed subsidy from other schemes as well. A week full training is provided before starting the project.

13. How Strong are PMFME Proposals. – Post Sanctions Assisting for receiving subsidy at mirror account. Hand Holding Support by DRP for grounding project. Assisting to beneficiary for availing all required licenses to run the project. Three years of hand holding support to beneficiary for all the support he needed. Updating MIS for three years to record beneficiaries financial activities.

14. Flow of Application to Bank .

15. डी एण ओ स्तर कर्यवाहि

16. impact of scheme 2021-25 Total projects to be established 23224 Nos. Common Infrastructure Facility 518 Nos. Total direct employment to be generated 1.65 Lakh. Indirect in direct employment 12.56 Lakh Total processable material consumed 47.00 Lakh MT. Available seed capital for SHG member 55360 Nos. Total proposed investment Rs. 4660.00 Cr. Seed capital to be made available Rs. 185.44 Cr. Scope for bank funding @ 55% Rs. 2563 Cr. Proposed parked fund in GL account Rs.1631 Cr.

17. Current status of Maharashtra in India Sr. No State No. of Sanctioned 1 Maharashtra 1 462 2 Tamil Nadu 740 3 Karnataka 911 4 Andhra Pradesh 661 5 Himachal Pradesh 640 6 Uttar Pradesh 473 7 Punjab 435 8 Madhya Pradesh 331 9 Odisha 261 10 Telangana 244

18. Top 14 Bank wise sanctions in state Name of Bank Loan Rejected Loan Sanctioned Pending with Lending Bank Grand Total BANK OF INDIA 141 188 222 551 STATE BANK OF INDIA 374 162 379 915 Maharashtra Gramin Bank 37 118 158 313 BANK OF MAHARASHTRA 225 104 320 649 CENTRAL BANK OF INDIA 124 83 97 304 BANK OF BARODA 122 82 124 328 CANARA BANK 66 81 47 194 UNION BANK OF INDIA 79 49 99 227 VIDHARBHA KONKAN GRAMIN BANK HO NAGPUR 52 42 30 124 IDBI BANK 14 39 173 226 HDFC BANK 12 30 134 176 SANGLI DCC BANK LTD   28 77 105 The Ajara Urban Co op Bank Ltd Ajara 2 13 13 28

19. Reasons for rejections Documents are not provided – Already attached in MIS Out of service area – Most of the time account is in said branch No Knowledge of activity – one week of training is provided & 3 yr hand holding Not contactable – In this case DRP can help bank to bring applicant at bank Not aware about his application in bank – Some time family member provide their parents number due to some reason. Blank or Reject remark – The rejection should be done with logical background Application & required documents not submitted to the branch.- No need to submit physical document as DPR is available on MIS

20. What happens when one applications rejects for minor reason. Entire efforts of all machinery involved in gets wasted Applicant get demotivated Negative news gets spread among locality about scheme and bank

21. Thank You State Head PMFME Amol - 9021989021