Seed Capital scheme offering Rs 40,000 for urban SHGs launched

New Delhi, Sept 28 (KNN) The Ministry of Food Processing Industries in association with the Ministry of Housing and Urban Affairs under the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme has virtually launched the Seed Capital Module on Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) MIS Portal for seed capital assistance to members of urban Self Help Groups working in the food processing sector in India.

The seed capital portal can be accessed at https://nulm.gov.in/Auth/Login.aspx for Self Help Groups to avail the seed capital assistance of Rs.40,000 per SHG member under the PMFME Scheme. Urban SHG members which are engaged in Food Processing activities would be sensitized and motivated about the PMFME scheme to avail the benefits of seed capital for purchasing small tools and working capital, government said in a statement.

Launched under the Aatmanirbhar Bharat Abhiyan, the PMFME Scheme aims to enhance the competitiveness and promote the formalization of the unorganized micro—food processing enterprises in India. The scheme aims to empower self-help groups.

The scheme will provide seed capital support of Rs.40,000 per SHG member; Credit linked subsidy for capital investment up to 35% with a ceiling of Rs. 10 lakh; Credit linked grant support up to 35% for establishing common infrastructure; Handholding support for DPR preparation and Capacity building and training support.

Launched under the Aatmanirbhar Bharat Abhiyan, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme is a centrally sponsored scheme that aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.

The scheme provides support to Farmer Producer Organizations, Self Help Groups, and Producers Cooperatives along their entire value chain. With an outlay of Rs.10,000 crore over a period of five years from 2020-21 to 2024-25, the scheme envisions to directly assist the 2,00,000 micro food processing units for providing financial, technical, and business support for upgradation of existing micro food processing enterprises.