Pradhan Mantri Formalisation Of Micro Food Processing Enterprises- Support for Common Infrastructure

The PM-FME Scheme was launched by the Ministry of Food Processing Industries of the Government of India in June 2020 to formalise, upgrade, and support micro food-processing enterprises in the unorganised sector. The “Support for Common Infrastructure” component under this scheme is intended to help groups, FPOs, SHGs, cooperatives, or private agencies set up shared processing/ storage/ value-chain infrastructure so that smaller units can use these facilities and thereby upgrade their capacity, reduce waste and improve competitiveness. Your enterprise, if you are part of a group or producing under a shared facility concept in the food-processing sector, can benefit from this component.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Eligibility of groups & shared infrastructure entities: Under the common infrastructure component you cannot apply as an individual micro unit; the applicant must be a group such as a Farmer Producer Organisation (FPO), Self Help Group (SHG) federation, cooperative society, any government agency or a private enterprise designated to set up common facilities.
Credit-linked grant @ 35% of project cost: The scheme provides a grant support of 35% of the approved project cost for setting up common infrastructure — this is credit-linked, meaning there must be bank financing for the remaining portion and the grant is routed via the lending bank after sanction.
Focus on ODOP produce for prioritisation: Preference is given when the infrastructure is for processing produce identified as the One District One Product (ODOP) for the district. New units or infrastructure under this component must preferably align with ODOP.
Facility to be available on hire-basis / public sharing required: A condition is that the common infrastructure should also be available for other units and public to hire/use for a substantial part of the capacity - ensuring it serves a larger cluster of producers, not just the applicant.
Wide range of infrastructure types: The scheme lists typical types of infrastructure eligible — e.g., premises for assaying, sorting, grading, warehousing and cold storage at the farm gate; common processing units for ODOP produce; incubation centres which smaller units can hire.

Financial Assistance

Component	Assistance Provided	Detailed Explanation (with example)
Grant Component	Credit-linked grant @ 35% of approved project cost for common infrastructure	Example: A cooperative proposes a cold-storage + sorting facility costing ₹2 crore; under the scheme it may receive a grant of ₹70 lakhs (35% of ₹2 crore) subject to all criteria.
Requirement of own equity + bank loan	The remaining project cost must be funded via bank loan + promoter’s contribution	Example: For the above ₹2 crore cost, ₹70 lakhs grant, the cooperative must fund the balance ₹1.3 crore (via bank loan + equity).
Hire-basis utilisation requirement	Facility must be made available for others/hire so that it serves cluster of units	Example: The cooperative ensures that 40–50% of capacity of the facility is available for smaller processors of that ODOP product in the district on a hire basis.

Eligibility Criteria

Who Can Apply:

Farmer Producer Organisations (FPOs), Self-Help Groups (SHGs), Producer Cooperatives, any Government agency or private enterprise for setting up common infrastructure under the Scheme.
Projects in respect of ODOP-identified products in the district/state (preference for units linked to ODOP) for the common infrastructure component.
Applicants must prepare Detailed Project Report (DPR) and show viability of infrastructure, raw material linkages, usage by multiple units, and contribution as per scheme norms.

Who Cannot Apply:

Projects outside the common infrastructure component (i.e., purely individual units rather than shared/hire infrastructure) under this drip-component of PMFME.
Infrastructure proposals not aligned with ODOP products or without sufficient linkage to multiple users / public usage.
Entities that cannot commit to the scheme norms such as required contribution, bank loan linkage, or who do not meet state nodal or scheme clearance criteria.

Documents Required

Detailed Project Report (DPR) for the common infrastructure project: project cost, turnover projections, usage plan, raw material linkages, etc.
Identity & address proofs of promoter agency (FPO/SHG/Co-op/Govt agency).
Bank loan sanction letter (for credit linked component) and subsidy eligibility details.
Ownership or lease documentation for infrastructure site (workshed/leasehold where applicable)
Financial statements/turnover details of group units (in case of FPO/Cooperative) showing viability.
Other regulatory clearances/approvals (land/lease, FSSAI, GST/Udyam registration) as required.

Application Process for the Scheme

Option 1: Apply with Bullit (Recommended)

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: FPOs/SHGs/Coops or agencies seeking common infrastructure support under PMFME.

Option 2: Direct Government/State-Process

Approach the State Nodal Agency (SNA) for PMFME in your state.
Identify the common infrastructure proposal (type: cold-storage, processing, assaying, incubation centre) as per ODOP.
Submit DPR, Bank linkage for credit, subsidy & loan component as per guidelines.
On sanction of project, proceed with infrastructure implementation, grant transfer and follow-up.

Option 3: Apply Through the Official Online Portal

Applicants can also submit their application directly through the official portal of the implementing authority.
The process involves completing an online form, attaching the required documents, and submitting it digitally for review. Once submitted, the concerned authority verifies the details and communicates further steps or approval status to the applicant.
This option is suitable for those comfortable managing the process independently through the official online system.