Pradhan Mantri Formalisation Of Micro Food Processing Enterprises- Support to Individual Micro Enterprises
The PM-FME scheme is implemented by the Ministry of Food Processing Industries under the Government of India. It was launched on 29 June 2020 as part of the Atmanirbhar Bharat initiative, and is designed to run from FY 2020-21 to FY 2025-26 with an outlay of approximately ₹10,000 crore.The purpose of the scheme is to enhance the competitiveness of existing micro food-processing enterprises in the unorganised segment, promote formalisation , facilitate credit access, upgrade technology and support value-addition, especially focusing on the “One District One Product” approach. You as a micro-enterprise engaged in food processing can benefit by accessing a credit-linked capital subsidy for upgrading your unit, reducing costs, formalising your enterprise and improving market access.
Key Features
- Credit-linked capital subsidy @35% for individual units: Under this feature, if you upgrade or set up a micro food-processing unit (subject to conditions), you are eligible for a subsidy equal to 35% of the eligible project cost.
- Maximum subsidy ceiling of ₹10 lakh per eligible unit: The scheme sets a maximum ceiling of ₹10 lakh of subsidy per unit under the individual component, meaning that your eligible subsidy benefit will be capped at this amount.
- Minimum beneficiary contribution of 10% of project cost, rest via bank loan: To access the subsidy you must bring at least 10% of the project cost from your own funds, and the balance of the cost must be financed via a bank loan under the scheme’s credit-linkage.
- Eligibility criteria for existing micro units: The scheme specifies that only existing units (for this particular component) may apply; these must be unincorporated, employ less than 10 workers, preferably produce the ODOP product of the district but others may also qualify, ownership must be clear, etc.
- Support also includes capacity-building/training and hand-holding for formalisation: Beyond capital subsidy, the scheme offers training on food-safety, hygiene, marketing, bookkeeping, standardisation, machinery operation, etc., as part of the “Support to Individual Enterprises” component.
Financial Assistance
Eligibility Criteria
Who Can Apply:
- Indian citizens who are proprietors, partnership firms, private companies, SHGs/FPOs (depending on unit size) running or proposing to set up a micro food-processing unit in the unorganised segment.
- Individual micro food-processing units (new or existing) aiming to set up or upgrade units producing ODOP products (for new units) or any eligible food processing product (existing units).
- Units with viable business plan, ready to register under required regulatory norms (e.g., FSSAI, GST/Udyam) and integrate with formal value chains.
Who Cannot Apply:
- Large scale food-processing units that do not qualify as “micro” or are fully commercialised and outside micro unit definitions.
- Projects that are purely real-estate/lease-based and not directly engaged in food processing operations. (As per guidelines for infrastructure vs individual unit).
- Units producing ineligible products listed under exclusions in the scheme guidelines.
Documents Required
- Identity proof & address proof of applicant(s) (Aadhaar, PAN)
- Business registration documents or proposal for new unit (including Udyam/ GST/ FSSAI as applicable)
- Detailed Project Report (DPR) covering plant/machinery cost, civil work (if any, up to limit), business plan for new or existing unit.
- Bank loan sanction letter or term-loan application (for credit-linked component)
- Proof of promoter contribution (minimum 10% of project cost) and viability of proposed unit.
- Additional clearances/permits as applicable, photo/id of premises, equipment quotations etc.
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: Food-processing micro units seeking expert assistance in documentation and application.
Option 2: Direct Government / State Agency Process
- Visit the State Nodal Agency (SNA) for PMFME in your state or the MoFPI portal.
- Identify the individual unit component and prepare your detailed project plan (new unit or expansion/upgrade).
- Submit your application via the bank and the nodal agency for credit-linked subsidy.
- On approval, implement the unit, comply with subsidy conditions, and report as per guidelines.
Option 3: Apply Through the Official Online Portal
- Applicants can also submit their applications 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 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.