DRP Manual

PM Formalisation of Micro Food Processing Enterprises Scheme

(PMFME Scheme)
 TABLE OF CONTENTS

S.NO. TOPIC PAGE NO.

1 Who is a District Resource Person (DRP)? 2
2 Selection Criteria of the District Resource Person (DRP) 2
3 Roles & Responsibilities of the District Resource Persons 2
(DRP)
4 Payment to DRPs 2
5 Other Incentives to DRPs 3
6 Additional Manpower Support to DRP 4
7 Identification of Beneficiaries by the DRPs 4
8 Termination of the DRP 4
9 About the PMFME scheme 5
10 Components of Support 5
11 Process of Application Flow 8
12 Interest Subvention/ Top-Up assistance In Convergence 12
with other schemes
13 Procedure for release of subsidy for Individuals and Groups 15
14 Brands created under the PMFME scheme 17
15 Message from the beneficiaries 18
16 Annexure-I 20
17 Annexure-II 21
18 Annexure-III 24
19 For more information or queries 27

PAGE 1
WHO IS A DISTRICT RESOURCE PERSON (DRP)?
DRP is a professionally qualified person appointed by State Nodal Agency (SNA) to
provide the hand holding support to potential beneficiaries/ beneficiaries. These
Resource Persons are experienced and have relevant knowledge of DPR preparation.
Being local, the DRPs are aware of the local Industries/ Enterprises and actively work
on identifying the potential beneficiaries.

SELECTION CRITERIA OF THE DISTRICT RESOURCE

PERSON (DRP)
Any suitable person(s) (like retired Government/Bank Officials, Insurance agents, Bank
Mitras, Consultancy firms, Individual professionals, etc.) facilitating / handholding the
individual micro food processing enterprises applicants could be appointed as DRP by
the State Nodal Agency (SNA). The eligibility criteria for selection of DRP would be
decided by the SNA.

Atleast, one DRP should be appointed in one district. There may be more than one DRP
in a district.

ROLES & RESPONSIBILITIES OF DISTRICT RESOURCE

PERSONS (DRP)
The Scheme envisages DRPs at the District/ Regional level for providing hand-holding
support to the micro food processing enterprises. Each district should have atleast one
DRP. These DRPs carry out the following functions:

 Identification and facilitation of applications for availing credit linked subsidy

 Handholding micro enterprises in preparation of DPRs and getting bank loan

sanctioned

 Facilitating upgradation and formalization of the unit by getting necessary

regulatory approvals & certifications, etc like FSSAI, Udhyam, GST, as applicable,

 Facilitating training of the beneficiaries or mobilizing the beneficiaries (trainees) for

training in coordination with SNA/ SLTI or Designated Training Agency

 Assessment of beneficiaries (trainees) at the time of Training of Beneficiaries- DRPs

shall visit the training programme and certify the attendance of the trainees.

PAYMENT TO DRPs
 The Payment to the DRPs is to be made on the basis of each beneficiary supported
by them after the bank uploads the sanction letter on the portal. Payment to each

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 DRP would be @ Rs. 20,000/- per case (i.e. Rs. 10,000 after uploading of sanction
letter & Rs. 10,000 upon facilitating FSSAI Certificate, Udyam Certificate, GST
registration, wherever required).

 No physical or paper information is required and payment should be processed

based on online information available from Portal.

50% (Rs. 10,000) of the payment is made after

sanction of bank loan i.e. after verifying the
loan sanction letter by the lending banks on the • Stage: 1
MIS portal

Remaining 50% (Rs. 10,000) of the

payment is made after completion of the
unit and obtaining FSSAI Certificate,
Udyam Certificate & GST registration • Stage: 2
(wherever required)- Not linked with
completion of training

OTHER INCENTIVES TO DRP

The work of providing handholding support is a target-based job and no monthly salary
is provisioned for the DRPs. However, the DRPs are having other ways to earn incentives
like: -

Rs. 200/ beneficiary Rs. 1,000/ batch + TA / DA

• Mobilization cost of Rs. 200 • DRPs are entitled to get an
per trainee/beneficiary. The honorarium of Rs. 1,000 per
DRP may work for the batch of assessment, in case
mobilization of the training assessor seeks
beneficiaries for training assistance from DRP
and could claim the amount (Revised Capacity Building
(Revised Capacity Building Guidelines dt. 20.01.22, Para.
Guidelines dt. 20.01.22 10.3)
Annexure 4.A & Annexure
4.B)

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ADDITIONAL MANPOWER SUPPORT TO DRP
If required, the State/ UT may hire additional manpower with expertise in DPR
preparation to assist the DRPs in providing handholding support to beneficiaries.
Out of prescribed payment of Rs. 20,000/- to the DRPs, a payment upto Rs. 5,000/- per
application could be allocated to the additional manpower, in case the DRP seek
assistance from the additional manpower for DPR preparation.

IDENTIFICATION OF BENEFICIARIES BY THE DRPs

The DRPs are responsible for identification and mobilization of beneficiaries through
various interventions. The identification of potential beneficiaries could be carried out
through the following ways:
 Potential micro beneficiaries data from the District Industries Centers (DICs)

 Potential beneficiaries data of the State Rural Livelihood Mission (SRLM)- DRPs
could consult the District Mission Management Unit (DMMU) and Block Mission
Management Unit (BMMU) for obtaining the data of potential beneficiaries

 Potential beneficiaries data of the State Urban Livelihood Mission (SULM)- DRPs
could consult the City Mission Management Unit (CMMU) and Community
Organisers (CO) for obtaining the data of potential beneficiaries

 Data from the Tribal Welfare Department

 Training data from the Rural Self Employment Training Institutes (RSETI), Rural
development & self-employment training institute(RUDSETI)

 Potential beneficiaries data of M/o MSME shared by the MoFPI to all State Nodal
Agencies/Departments (SNA)

 Potential beneficiaries data of FSSAI shared by the MoFPI to all State Nodal
Agencies/Departments (SNA)

 State Level Upgradation Plan Data

 SNA survey data and data from State Level Technical Institute (SLTI)

TERMINATION OF THE DRP

As per the OM dated 2nd June, 2022 regarding the management of the DRPs and their
payment under the PMFME scheme, it is suggested that individual targets should be
allotted to the DRPs and their performance should be monitored by the SNA. In case of
non-performance, the DRPs should be terminated and new additional DRPs should be
appointed.

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PRADHAN MANTRI FORMALISATION OF MICRO FOOD
PROCESSING ENTERPRISES SCHEME (PMFME)
PMFME scheme is a centrally sponsored scheme under Atamanirbhar Bharat Abhiyan
that is designed to address the challenges faced by the micro enterprises and to tap the
potential of individuals and groups entrepreneurs in supporting the upgradation,
setting up of new units and formalization of these enterprises.

AIMS OF THE SCHEME

 To support Individual Entrepreneurs/ Proprietorship Firms/ Partnership Firms/
Farmer Producer Organisations (FPOs) / Farmer Producer Companies (FPCs)/
Non-governmental organization (NGOs) / Cooperatives / Pvt. Ltd. Companies/
Self Help Groups/ SHG member along the entire value chain

 To promote formalization of the sector

 To enhance competitiveness of individual micro-enterprises in the unorganized

segment

OBJECTIVES
 Increased access to credit by existing micro food processing entrepreneurs,
FPOs, Self Help Groups, and Co-operatives

 Integration with an organized supply chain by strengthening branding &

marketing

 Support for the transition of existing 2,00,000 enterprises into a formal

framework

 Increased access for the enterprises, to professional and technical support

COVERAGE
Under the scheme, 2,00,000 micro food processing units will be directly assisted with
credit linked subsidy. Adequate supportive common infrastructure and institutional
architecture will be supported to accelerate growth of the sector.

COMPONENTS OF SUPPORT
1. Support to Individual and Groups category for setting up of new units and
upgradation/expansion of the existing ones

 Credit linked Grant @ 35% with max. ceiling of Rs. 10 lakh

PAGE 5
 Organisations such as Individual Entrepreneurs/ Proprietorship Firms/ Partnership
Firms/ Farmer Producer Organisations (FPOs) / Non-governmental organization
(NGOs) / Cooperatives / Pvt. Ltd. Companies/ Self Help Groups/ SHG member as a
single unit of food processing industry, who have established or purpose to establish
micro food processing units, would be eligible for financial assistance under the
scheme

 Eligible project cost comprises cost of plant & machinery and technical civil work,
but excludes cost of land/ rental or lease work shed. However, technical civil work
should not be more than 30% of the eligible project cost

 Beneficiary contribution should be minimum of 10% of the project cost with balance
required fund (including Grants-in-Aid) being loan from Bank

Eligibility Criteria of individuals for availing Credit Linked Subsidy:

 Support to both existing or new micro food processing enterprises for expansion/
upgradation of existing micro food processing enterprises or setting up of new micro
food processing enterprises would be provided under the scheme

 While enterprise involved in the product identified in the ODOP of the district will
be preferred, other micro enterprises would also be considered for both existing or
new micro food processing enterprises. Therefore, both ODOP and non-ODOP
processing enterprises are eligible without any restriction.

 However, list of food processing activities placed at Annexure-I are not eligible for
assistance under the scheme.

 The individual applicant should be above 18 years of age. No minimum educational

qualification of the applicant is required.

 The applicant should have ownership right of the enterprise.

 Only one person from one family would be eligible for obtaining financial assistance.
The “family” for this purpose would include self, spouse and children;

 Applicant/enterprise is eligible for bank loan under the Scheme, even if he has
availed bank loan in other Subsidy Linked Schemes of Govt. Applicant is also eligible
for Interest Subvention and Top Up convergence with other relevant Government
Sponsored Schemes. 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.

 The applicants/Entrepreneurs of existing units under stress and qualifying for

restructuring by the Banks are also eligible for upgradation/expansion of the Unit
under the scheme.

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2. Support to Group category for setting up of common infrastructure:

 The applicant organization would be provided credit-linked capital subsidy @35%

of the eligible project cost with a maximum ceiling of Rs. 3.00 crore. Eligible project
cost comprises cost of plant & machinery and technical civil works, but excludes cost
of land/ rental or lease work shed. However, technical civil work should not be more
than 30% of the eligible project cost

 Organisations such as Farmers Producer Organisations (FPOs) / Farmer Producer

Companies (FPCs) / Cooperatives / Self Help Group (SHGs) and its Federation /
Government Agencies, who have established or purpose to establish food processing
line alongwith common infrastructure / value chain / incubation centres would be
eligible for financial assistance support under this component of the scheme

 The applicant organization’s contribution should be minimum of 10% of the project

cost with balance required funds (including Grants-in-Aid) being loan from Bank.

Eligibility Criteria of Groups for setting up of common infrastructure:

 Total eligible project cost should not exceed Rs. 10 Crore. There will be no pre
condition of minimum turnover and experience of the applicant organization.

 Proposal for both ODOP or non-ODOP are eligible for assistance

 Before applying on the portal, the applicant organization is also required to submit
in-principle approval from the lending bank for the loan envisaged in the means of
finance of the project.

 Substantial capacity of common infrastructure as well as processing line assisted

under the scheme should be available for use by other units and public on hiring
basis.

 Assistance of Rs. 50,000/- per case would be provided to the applicant organizations
for preparation of Detailed Project Report (DPR) after sanctioning of loan by the
bank. Engaging District Resource Person (DRP) for this component of the scheme is
not mandatory. The applicant organization may engage any professional / agencies
having experience in preparation of DPR.

3. Capacity Building

Individual micro-food processing entrepreneurs and SHGs/ FPOs/ FPCs/ Cooperatives

/ Federation / Government Agencies, both new and existing food processing
entrepreneurs would be provided training.

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 Training of DRPs:

To effectively carryout their duties, DRPs are imparted training by the Master Trainers
on following:

 Entrepreneurship Development Programme (EDP)

 Product specific training

 Scheme provisions, Detailed Project Report (DPR) and MIS training

The training of the DRP will be organized by the SNA/ SLTI. Details of the type of
training, duration, cost of training and qualification of the DRPs are given in Annexure-
3 of the Revised Capacity Building Guidelines dated 20.01.2022.

PROCESS OF APPLICATION FLOW

There are 4 Statges for online applications in PMFME Portal: -

Registration of
application on DRP Stage: The Bank Stage
PMFME portal by Application is Submission (sanction/
Draft application
the now in DRP Stage-DNO/DLC disbursement of
applicant/benefic Portal Subsidy)
iary

1. Registration/Draft Stage & Submission Stage

Registration of application on PMFME portal by the applicant/beneficiary along with

mandatory KYC documents (as per Annexure), details of ownership/leasehold rights of
land/plot on which the unit is to be started (Lease/rent agreement should be for more
than loan repayment period), quotations of the machinery, construction estimates (If
loan is also sought for construction). If the documents are complete, the application will
move to submitted stage, otherwise will be in draft stage.

DRP Stage

The DRP scrutinizes for the eligibility, KYC documents, ownership/lease documents,
DPR and move to DNO/ DLC portal. The DRP should also handhold the beneficiary of
application at Draft Stage to complete the deficient documents and ensure that the
application is complete and pushed to submission stage. The DRP should ensure that
he as well as beneficiary is well versed with the information/financials entered in the
application, additional information sought/points raised by the Banks at Stage-iv (Bank
Stage).

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Following are the minimum check points to be verified by DRPs while recommending
the applications: -

i. In DPR- All columns are filled and the financial ratios are properly reflecting with
DSCR ->1.5, Positive BEP, etc (having 8% Profit)
ii. Mandatory documents (as per Annexure-II, KYC and applicable
approvals/licenses)
iii. Details of ownership/ leasehold rights of land/ plot on which the unit is to be
started (Lease /rent agreement should be for more than loan repayment period)
iv. Quotations of the Plant and Machinery
v. Construction estimates (If loan is also sought for construction)
vi. Scrutiny for eligibility as per the modified scheme guidelines
vii. Field visit is done properly and Photograph of existing/proposed unit is captured.

3. District Nodal Officers (DNOs) / State Nodal Agency Stage (SNA)

Individual & Groups category for Group category for Common

setting up of new units and Infrastructure
upgradation/expansion of the existing
Organisations such as Proprietorship Organisations such as Farmers Producer
Firms/ Partnership Firms/ Farmer Organisations (FPOs) / Farmer Producer
Producer Organisations (FPOs) / Non- Companies (FPCs) / Cooperatives / Self
governmental organization (NGOs) / Help Group (SHGs) and its Federation /
Cooperatives / Self Help Groups / Pvt. Ltd. Government Agencies, who have
Companies, who have established or established or purpose to establish food
purpose to establish micro food processing processing line alongwith common
units, would be eligible for financial infrastructure / value chain / incubation
assistance under the scheme centres would be eligible
In case of Individual Applications, the In case of Group Applications, the
application would be forwarded by DRPs to application would be forwarded by DRPs
DNOs for further recommendation to to SNA for further recommendation to
Lending Bank. Lending Bank.
In case of Individual Applications, DRP However, in case of Group Applications,
engagement is mandatory. engaging District Resource Person (DRP)
is not mandatory.
Once the individual application is in In case of Group Applications for
DLC/DNO Portal, the DNO is to scrutinize common Infrastructure, State Level
the application, detailed project report, Approval Committee (SLAC) is
KYC documents, property empowered to approve/ sanction/ reject
Ownership/lease/rent papers, financial the project proposals received under
statements, copy of statutory permissions aforementioned components of the
(applicable for the proposed project) etc scheme and need not be referred to
and recommend to the First preferred MoFPI for approval.
lending Branch.

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 In case of any gap, the DNO will issue SLAC may also consider delegating the
deficiency and the application will move to powers for approval of the projects under
the beneficiary for rectification. various components to the Nodal
Department implementing this scheme
by prescribing appropriate limits.
4. Bank Stage:
Following steps would be carried out by the lending bank branch while appraising
the applications received on the PMFME portal: -

i. The concerned Branch should scrutinize / verify the documents and generate Credit
Information Report - CIR (CIBIL, EQUIFAX etc) on the applicant and take his
personal interview covering his background, brief details of the proposed project with
overview of techno – economic viability aspects viz. reasons for opting proposed
project, location of the project, land ownership, Raw Material supply, Labour,
electricity, water, transport facilities, marketing arrangements, demand for the
product, order book etc.
ii. The Bank would scrutinize mandatory documents (as per Annexure-KYC) and
applicable approvals/licenses-Udhyam Registration, FSSAI in all existing cases and
after sanction in new cases. PAN and GST registration-wherever applicable)
iii. It should verify the ownership/leasehold/rental rights of the land on which the unit
is to be started (Lease /rent agreement should be for more than loan repayment
period).
iv. The Branch should seek Primary Security in the form of hypothecation of Machinery
only upto Rs.10 lakhs-MUDRA. For loans above Rs.10.00 Lakhs, the Bank should seek
Land mortgage-Primary Security, only if the oan is also sought for construction and
Machinery for hypothecation (CLU is also required for mortgage except UP, MP,
Rajasthan and Maharashtra), and CGTMSE cover (of course with annual guarantee
fee to be borne by the beneficiary) or Collateral Security (mortgage of land/building
other than the Unit, if the beneficiary is not agreeable for payment of Guarantee
Fees).
v. If the Branch is satisfied with the findings of CIR and personal interview, it should
go for the pre-sanction inspection of the project site to gather more information on
the applicant / project status.
vi. Title Search & Valuation report – Only when loan is sought for technical
construction. If the Branch Officials are satisfied with the techno – economic
viability aspects, the Branch to initiate Title Search & Valuation report of the project
land through the panel advocate and valuer, respectively. The Branch to scrutinize
quotations of machinery, construction estimates & satisfy itself with genuineness
and reasonability of the cost.
vii. Processing of Proposal - The Branch to start processing of proposal. If the sanction
falls within delegated authority of the Branch, entire processing and sanction is

PAGE 10
 completed at Branch level and if it falls within delegated authority of higher
authorities / Head – Centralized Processing Centre (CPC) - the application, project
report, search report, valuation report, permissions, inspection report and other
related documents to be forwarded to the CPC for further processing and sanction
viii. Scrutiny by Processing Centre - The Processing Centre would carry the scrutiny
of documents & complete the loan appraisal formalities which mainly involves
vetting of techno – viability aspects. After satisfying, the loan would be sanctioned
by appropriate authority and would convey the sanction to the Branch.
ix. The Branch would issue sanction letter to the applicant and also advise details of pre
& post disbursement formalities to be completed. If the applicant accepts terms of
sanction, the branch to upload the sanction letter on PMFME Portal and the Branch
would call upon applicant to complete the document execution formalities. Only
when loan is sought for technical construction: In case, original title/lease deeds
are available with the applicant, the Bank would stipulate creation of Equitable
Mortgage which involves deposit of original title deeds with the Bank Branch and
filling of notice of intimation (NOA) with the concerned Sub Registrar Office. If the
property is ancestral, the applicant has to create Legal / registered mortgage at
concerned SRO where filling of NOA is not required.
x. In case the First Preferred Bank rejects the application, the application will
automatically move to second preferred bank, which will complete all the formalities
as detailed for First Preferred Bank.
xi. After completion of above formalities, the disbursement would start as per terms of
sanction and upon disbursement of first trench, the disbursement details are
uploaded by the lending bank on PMFME portal. Upon seeing the disbursement on
portal, the MoFPI will ask State to release its share and concurrently release the
Centre share of the grant in Nodal Bank’s account, who in turn will remit the grant
to the credit of Transient Account The grant will be parked in Transient Account for
3 years or account turning NPA, whichever is earlier. No interest will be charged on
the grant balance portion of the Term Loan
In Nutshell:
i) No Collateral Security is required in any PMFME Loan upto Rs.2.00 Crores as the
loan is to be covered under MUDRA/CGTMSE, except when the beneficiary is
not agreeable for payment of guarantee fees.
ii) Mortgage of Land/Plot on which the unit is being installed is sought as primary
security only when loan is applied for technical construction.
iii) As MoFPI has provided option for uploading revised/modified DPR/additional
documents to the lending branch, in case lending branch differs with Online
DPR/financials, there should be NO rejection due to inconsistent
DPR/financials/documents.

PAGE 11
iv) Since MoFPI has issued guidelines regarding non applicability of Service Area in
PMFME Scheme, the branches should consider applications within their
command area.
v) In order to improve quality of applications and lower the rejection rate, the
Branches may mobilize PMFME applications from their existing and potential
beneficiaries and pursue them to apply on PMFME Portal.

INTEREST SUBVENTION/ TOP-UP ASSISTANCE IN

CONVERGENCE WITH OTHER SCHEMES
The applicants/enterprises are eligible for the bank loan under the scheme, even if he
has availed bank loan in other subsidy linked schemes of Government. Applicants are
also eligible for Interest Subvention and Top-up in convergence with other relevant
Government schemes.

1. Interest subvention assistance for Scheduled Castes (SC) and Schedule Tribes
(ST) from SC/ST Finance and Development Corporation (NSFDC & NSTFDC)

NSFDC and NSTFDC are fully owned Government of India Undertakings promoting
economic empowerment of persons belonging to Scheduled Castes and Schedule
Tribes, respectively, by providing loans at concessional interest rates through its
Banking Channel Partners in refinance mode.

Refinancing implies that the interest rate on loans granted by partner banks at
Higher Rate are reduced so that lower/concessional interest rate is charged form the
beneficiaries as per the NSFDC/NSTFDC scheme

2. How interest subvention support is availed for SC and ST beneficiaries?

 If the beneficiary belongs to SC or ST category, he/ she could avail the refinancing
support as a top-up to the PMFME scheme benefits. i.e. his/ her interest rate could
be reduced.

 For availing the refinancing support, the beneficiaries are advised to choose the
lending banks which are partner banks to NSFDC and NSTFDC. The list of Bank
Partners of NSFDC and NSTFDC are attached at Annexure-III.

 Additionally, the Caste and the Income Certificate of the beneficiary could be asked
by the Banks.

3. Interest subvention through Agriculture Infrastructure Fund (AIF) and

Animal Husbandry Infrastructure Development Fund (AHIDF)

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Support under both the scheme is provided to the eligible beneficiaries on the following
components:

Agriculture Infrastructure Fund (AIF)

S.No Component Norms & Process

1 Interest Subvention All loans under this financing facility have interest
subvention of 3% per annum up to a limit of Rs. 2
crore. This subvention is available for a maximum
period of 7 years (Including moratorium period upto
2 years). In case of loans beyond Rs. 2 crore, interest
subvention is limited up to Rs. 2 crore.

2 Credit Guarantee Credit guarantee coverage is available for eligible

fee borrowers under Credit Guarantee Fund Trust for
Micro and Small Enterprises (CGTMSE) scheme for a
loan up to Rs. 2 crore. The fee for this coverage will
be paid by the Government for a maximum period of
7 years. In case of FPOs the credit guarantee may be
availed from the facility created under FPO
promotion scheme of DA&FW.

Animal Husbandry Infrastructure Development Fund (AHIDF)

1 Interest Subvention All loans under this financing facility have interest
subvention of 3% per annum.
 The DAHD will directly pay the interest subvention to
the Scheduled Bank. DAHD pays interest subvention
amount in advance upfront to the lending bank for the
first year.
 From the 2nd year onwards, interest subvention is
released based on the non-NPA borrowers entitlement
claimed by the scheduled banks every year in advance.

PAGE 13
Agriculture Infrastructure Fund (AIF)
S.No Component Norms & Process

2 Credit Guarantee  A Credit Guarantee fund of Rs. 750 Cr. is established

fee and managed by NABARD.
 Credit guarantee coverage is available for eligible
borrowers covered under MSME ceiling and the
guarantee coverage would be upto 25% of the credit
facility available to the borrower.

4. How interest subvention support could be availed through AIF and AHIDF
schemes?

 Post loan sanction under the PMFME scheme, the beneficiaries may register
themselves and submit the application in AIF and AHIDF portal by uploading
the PMFME DPR, bank sanction letter under PMFME and other relevant
documents.

 The application portal of AIF and AHIDF to avail interest subventions are as
follows; https://agriinfra.dac.gov.in/Home/BeneficiaryRegistration and under
AHIDF on the following link https://ahidf.udyamimitra.in/

 The beneficiaries who have availed the benefits of interest subvention from
AIF/AHIDF/ any other scheme, may also apply under the PMFME scheme on the
PMFME portal https://pmfme.mofpi.gov.in/pmfme/#/Login

 Once Verified by the approving authority of AIF/ AHIDF, the Application will be
available to the Bank to take further action.

 Banking functions and Claim process for Interest Subvention and CG under
AIF/AHIDF would remain as per the existing functionality in AIF/AHIDF.

 In future course, suitable changes would be incorporated in their portal for

AIF/AHIDF beneficiaries to apply and availing benefits under PMFME scheme.

5. Top-up grant in convergence with other schemes under the Government of

India and the State Governments

 Beneficiaries may also avail the grant from other schemes under the Government
of Indian and the State Governments.

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  The only condition for availing the top-up grant from any other scheme is that
the scheme benefits of both the schemes should not be duplicated.

 The approval process would be same as prescribed in the specific scheme

guidelines.

PROCEDURE FOR RELEASE OF SUBSIDY FOR

INDIVIDUALS AND GROUPS
i. The main expenditure under the Scheme is credit linked grant @35% for the
for micro food processing enterprises subject to a maximum of Rs.10 lakh in
individual applications and Rs.3.00 Crores in Group Applications.
ii. At the national level, a Nodal bank (Presently-Union Bank of India) would be
appointed for disbursement of subsidy to the banks and liaison with the
banks.
iii. After the sanction of loan, the branch has to enter the sanction details like
date of sanction, project cost, loan amount, interest rate, repayment period
etc. in the portal. The branch has also to upload the copy of the Sanction
Intimation duly signed by the Branch Manager and acknowledgment by the
borrower to the terms and conditions of the credit facility.
iv. The beneficiary should deposit his/ her contribution with the bank.
Thereafter, the bank should release the first instalment of the loan /full loan
to the beneficiary.
v. Bank branches can claim the credit-linked capital subsidy based on the
first/full disbursement of the loan amount. Bank branches have to enter the
details of loan such as the date of disbursement, total loan amount
sanctioned, loan amount disbursed, remaining amount to be disbursed, loan
account no. and also to upload loan account statement in the portal. Central
and State Government should respectively transfer its share of grant to the
Nodal Bank. The Nodal Bank would transfer entire grant to the concerned
lending Bank branch in one go.
vi. The grant would be released to the lending branches in trenches or full as
given below;
a) Grant amount up to Rs.10 Lakhs: The grant would be transferred to the
lending bank after disbursement of First Trench of the loan by the bank and
the bank has uploaded the disbursement details on PMFME Portal.
b) Grant amount above Rs.10 Lakhs: The grants above Rs.10 lakhs would be
released in 2 equal trenches:
One, immediately after 50% disbursement is made-proportionately with
beneficiary’s contribution/equity and after production of following
documents
a) Bank Certificate that they have released 50% of the Term Loan and the

PAGE 15
 required expenditure is made on the Project, enclosing complete
inspection report certifying end use of funds
b) CA Certificate with UAN for actual expenditure and 50% of stipulated
promoter’s contribution for grants above Rs.1.00 Crore
c) NOC from Pollution Control Board, if applicable
vii. Second Instalment- after 100% disbursement is made-proportionately with
beneficiary’s Contribution/equity and after production of following
documents
a) Bank Certificate that they have released 100% of the Term Loan and the
required expenditure is made on the Project, enclosing complete
inspection report certifying end use of funds, along with confirmation
that 1st instalment of grant in credited in the Transient Account of the
beneficiary.
b) CA Certificate UAN for actual expenditure and 100% of stipulated
promoter’s contribution for grants above Rs.1.00 Crore
c) NOC from Pollution Control Board, if applicable
viii. Bank branches have to enter the details of the designated account for the
receipt of credit linked subsidy like account no., IFSC code, contact no. of the
Branch Manager, bank and branch details and to upload the bank account
details.
ix. Centre and State Government share of grant would be transferred to the
Nodal Bank (Union Bank of India). The Nodal Bank would transfer the grant
to the concerned lending bank branch within a period of two working days.
x. Once the subsidy amount is received at the branch level, the bank branch has
to keep the fund in the Subsidy Reserve Fund account (Transient Account)
and has to acknowledge the receipt of the funds by updating the portal
regarding the date of receipt and date of deposit.
xi. Bank branches have to update the disbursement schedule in the portal till
the full/ final disbursement for the loan account is done.
xii. If after a period of three years from the disbursement of the last tranche of
the loan, the beneficiary account is still standard, and the unit is operational,
this grant amount would be adjusted in the loan account of the beneficiary.
xiii. No interest would be payable by the borrower on the portion of the loan
disbursed by the bank equal to the grant amount from the date of receipt of
the grant amount by the lending bank.
xiv. If the account becomes NPA within three years from the date of disbursement
of the loan, the grant amount would be adjusted by the bank towards
repayment by the beneficiary.
xv. Details of adjustment of the subsidy grant such as date of adjustment, the

PAGE 16
 status of loan account, adjustment towards NPA or standard account to be
updated in the portal.

MARKETING & BRANDING SUPPORT AND BRANDS

CREATED UNDER THE PMFME SCHEME
Under the scheme, 10 ODOP Brands and 2 State’s and are launched which are as follows:

ODOP BRANDS UNDER PMFME

S.No. State ODOP brand with NAFED
1 Bihar Makhana King
2 Haryana Amrit Phal
3 Rajasthan Cori Gold
4 Jammu and Kashmir Kashmiri Mantra
5 Uttar Pradesh Madhu Mantra
6 Uttar Pradesh Madhur Mithas
7 Maharashtra Somdana
8 Delhi Dilli Bakes
9 Meghalaya Anaras
10 Punjab Pind Se
STATE BRANDS UNDER PMFME
S.No State State Brand
1 Punjab AASNAA
2 Maharashtra BHIMTHADI
Marketing and Branding support is provided to Groups (FPOs/ FPCs, Cooperatives,
SHGs, Federations, Govt. Agencies) or an SPV of micro food processing enterprises or
an SPV for developing a common brand, standardization & packaging with a Grant upto
50% of the project cost.

The benefits include Product Standardization, Trademark registration, market study,

packaging material, warehousing/storage rentals, Listing cost and institutional linkage,
Advertisements, training for sales & marketing, logistic support

The individual beneficiaries under the PMFME scheme have the opportunity to come
under the brands created (mentioned in the above Table), if they are into similar
product line.

If interested, they would be supported for branding and market linkages for processing,
product development & standardization, quality assurance, supply chain, logistics and
packaging as per the defined norms of the brand. The eligibility to come under the ambit
of brand would be as per the defined norms of the concerned brand.

PAGE 17
MESSAGE FROM THE BENEFICIARIES

PAGE 18
PAGE 19
 Annexure-I

List of food processing activities not eligible for assistance under the scheme.

i. Trading and selling of unprocessed Millets/Cereals/Spices etc.

ii. Unprocessed or Loose Milk (Selling of Milk/Curd)
iii. Trading and selling of fruits and vegetables
iv. Trading and selling of unprocessed Minor Forest Product
v. Bee Keeping/Loose selling of Honey
vi. Loose selling, trading and repacking of oil
vii. 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.)
viii. Poultry, Piggery, Goatry or any other rearing activity of animals
ix. Trading and selling of fresh Fish/ meat/chicken etc.,
x. Repacking of manufactures products
xi. Canteen, grocery, hotel, tiffin services, restaurants or any other food services
enterprises

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 Annexure-II

Checklist of DOCUMENTS for submitting on line applications/Credit Proposals

under PMFME Scheme of the MoFPI, Government of India.

A. (New Enterprises- Individuals/Firms):

I. Mandatory Documents.

1. PAN Card of concerned/all promoters

2. Aadhaar Copy & Photo of all promoters/guarantors
3. Address Proof: Any of Officially Valid Documents-OVD
 Utility bill, not more than two months old of any service provider,
(Electricity, telephone, post-paid mobile phone, piped gas, water bill) or
 Property or Municipal tax paid receipt
 Ration Card (Individual), iv. Driving Licence,v) Adhar Card
 Voter ID Card
4.Detailes of site where Unit is to be established. Whether owned/rented/leased?
and Proof thereof. (Lease /rent agreement should be for more than loan
repayment period)
5. Photocopy of Bank Statement/ Bank Passbook for the last 6 months.
6. Estimates and Quotation of all capital expenditure and Machineries and
Equipment to be purchased

II. Optional Documents

1. Photocopy of highest academic qualification of promoter/s

2. Sanction letter, if any/ Loan statement of active loans, if any
3. Any other Document

B. Existing Enterprises- Individuals/Firms with < 1 Cr Turnover)

I. Mandatory Documents

1. PAN Card of the concerned

2. Aadhaar Copy & Photo of all promoters/ proposed guarantors, if any
 Address Proof: Any of Officially Valid Documents-OVD
 Utility bill, not more than two months old of any service provider, (Electricity,
telephone, post-paid mobile phone, piped gas, water bill)
 Property or Municipal tax paid receipt or
 Ration Card (Individual)
 Driving License
 Aadhaar Card
 Voter ID Card

3. Details of site where Unit is established. Whether owned/rented/leased? and Proof

thereof. (Lease /rent agreement should be for more than loan repayment period)

PAGE 21
4. Udyam Registration Certificate/s/ IE code- wherever applicable/Licenses (Trade
License/Shop & Establishment Registration/Panchayat License/Corporation
License/Municipality License)
5. Business Partnership Agreement (If Individual/Proprietor- not applicable)
6. Photocopy of Bank Statement/ Bank Passbook for the last 6 months of the firm
7.Estimates and Quotation of all capital expenditure and Machineries and Equipment
to be purchased. Photo of the Existing Units.

II. Optional Documents

1. Audited/ Self-affixed balance sheet with annexures of maximum. 3 years with ITR: if
applicable.
2. Copy of License as per industry (FSSAI, Pollution Clearance etc.)
3. GSTIN Registration Certificate- if applicable
4. GST returns of last 1 year- if applicable
5. Sanction letter, if any/ Loan statement of active loans, if any
6. Insurance Policy copy of the existing unit & Stock-if any.
7. Latest Stock Statement
8. Quarterly sales-purchase of previous year and current year
9. Any other document.
10. Photocopy of highest academic qualification of promoter

C. Existing Enterprises- Individual/Firms with > 1 Cr Turn over)

I. Mandatory Documents
1. PAN Card of concerned/group concerns/all promoters/guarantors
2. Aadhaar Copy & Photo of all promoters/guarantors
3. Address Proof: Any of Officially Valid Documents-OVD
 Utility bill, not more than two months old of any service provider, (Electricity,
telephone, post-paid mobile phone, piped gas, water bill)
 Property or Municipal tax paid receipt or
 Ration Card (Individual)
 Driving License
 Aadhaar Card
 Voter ID Card
4. Udyam Registration Certificate/s/ IE code- wherever applicable/Licenses (Trade
License/Shop & Establishment Registration/Panchayat License/Corporation
License/Municipality License)
5. Business Partnership Agreement (If Individual/Proprietor- not applicable)
6. Photocopy of Bank Statement/ Bank Passbook for last 6 months of the firm
7. Details of site where Unit is established. Whether owned/rented/leased? and Proof
thereof. (Lease /rent agreement should be for more than loan repayment period)
8. Estimates and Quotation of all capital expenditure and Machineries and
Equipment to be purchased. Photo of the Existing Unit.

PAGE 22
 9. Audited balance sheet with annexures of maximum 3 years with ITR
10. Copy of License as per industry (FSSAI, Pollution Clearance etc)
11. GSTIN Registration Certificate
12. GST returns of last financial years
13. List of existing machinery and equipment

II. Optional Documents

1. Loan statement/Sanction letter of active loans, if any
2. Insurance Policy copy of the existing unit & Stock.
3. Audited balance sheet of Group/Sister concern with annexures of Maximum last 3
years with ITR
4. Latest Stock Statement
5. Quarterly sales-purchase of previous year and current year
6. Photocopy of highest academic qualification of promoter/s
7. Any other document

PAGE 23
 Annexure-III

Partner Banks of NSTFDC for availing Refinancing Support to the ST

Beneficiaries

S.No. Public Sector Banks S.No. Regional Rural Banks

(PSBs) (RRBs)
1 State Bank of India 1 Assam Gramin Vikash Bank
2 UCO Bank 2 Langpi Dehangi Rural Bank (Assam)
3 Syndicate Bank 3 Baroda Gujarat Gramin Bank
4 Union Bank of India 4 Dena Gujarat Gramin Bank
5 Dena Bank 5 Jharkhand Rajya Gramin Bank
6 Vijaya Bank 6 Vananchal Gramin Bank
(Jharkhand)
7 Central Bank of India 7 Central Madhya Pradesh Gramin
Bank
8 Punjab National Bank 8 Odisha Gramya Bank
9 Bank of Baroda 9 Utkal Gramin Bank (Odisha)
10 Mizoram Rural Bank
11 Meghalaya Rural Bank
12 Nagaland Rural Bank
13 Purvanchal Bank (Uttar Pradesh)
14 Uttarakhand Gramin Bank
15 Telangana Grameena Bank
16 Tripura Gramin Bank
17 Bangiya Vikash Gramin Bank
18 Tamil Nadu Grama Bank
19 Andhra Pradesh Grameena Vikas
Bank
20 Karnataka Vikas Grameena Bank
21 Kerala Gramin Bank

PAGE 24
 Partner Banks of NSFDC for availing Refinancing Support to the SC
Beneficiaries

Name of Regional Rural

State S.No. Headquarters Sponsor Bank
Bank
Andhra Pradesh Grameena
Warangal State Bank of India
1 Vikas Bank
Chaitanya Godavari Grameena
Andhra Guntur Andhra Bank
2 Bank
Pradesh
3 Saptagiri Grameena Bank Chittor Indian Bank
Andhra Pragati Grameena
YSR Kadapa Syndicate Bank
4 Bank
Punjab National Bank
Assam Assam Gramin Vikash Bank Guwahati (Earlier: United Bank of
5 India)
6 Dakshin Bihar Gramin Bank Patna Punjab National Bank
Bihar
7 Uttar Bihar Gramin Bank Muzaffarpur Central Bank of India
Chhattisgarh Rajya Gramin
Chhattisgarh Raipur State Bank of India
8 Bank
9 Baroda Gujarat Gramin Bank Bharuch Bank of Baroda
Gujarat
10 Saurashtra Gramin Bank Rajkot State Bank of India
Haryana 11 Sarva Haryana Gramin Bank Rohtak Punjab National Bank
Himachal Himachal Pradesh Gramin
Mandi Punjab National Bank
Pradesh 12 Bank
Jharkhand Jharkhand Rajya Gramin Bank Ranchi State Bank of India
13
14 Karnataka Gramin Bank Ballari Canara Bank
Karnataka Karnataka Vikas Grameena Canara Bank
Dharwar
15 Bank (Earlier: Syndicate Bank)
Kerala 16 Kerala Gramin Bank Malappuram Canara Bank
Maharashtra 17 Maharashtra Gramin Bank Aurangabad Bank of Maharashtra
Vidharba Konkan Gramin
Nagpur Bank of India
18 Bank
19 Madhya Pradesh Gramin Bank Indore Bank of India

Madhya 20 Madhyanchal Gramin Bank Sagar State Bank of India

Pradesh

Punjab National Bank

Manipur Manipur Rural Bank Imphal (Earlier: United Bank of
21 India)
Punjab 22 Punjab Gramin Bank Kapurthala Punjab National Bank
Puduvai Bharathiar Grama
Puducherry Pudducherry Indian Bank
23 Bank

PAGE 25
 Rajasthan Marudhara Gramin
Jodhpur State Bank of India
24 Bank
Rajasthan
Baroda Rajasthan Kshetrya
Ajmer Bank of Baroda
25 Gramin Bank
Tamil Nadu 26 Tamil Nadu Grama Bank Salem Indian Bank
State Bank of India (earlier
Telangana Telangana Grameena Bank Hyderabad
27 SBH)
Punjab National Bank
Tripura Tripura Gramin Bank Agartala (Earlier: United Bank of
28 India)
29 Baroda UP Gramin Bank Gorakhpur Bank of Baroda
Uttar
30 Prathama UP Gramin Bank Moradabad Punjab National Bank
Pradesh
31 Aryavart Bank Lucknow Bank of India
Uttarakhand 32 Uttarakhand Gramin Bank Dehradun State Bank of India
West
Paschim Banga Gramin Bank Howrah UCO Bank
Bengal 33

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FOR MORE INFORMATION OR QUERIES

CONTACT YOUR RESPECTIVE STATE NODAL AGENCY (SNA)

OR

Helpline Number 0130-2281089

8168001500
E-MAIL (Support) support-pmfme@mofpi.gov.in
E-MAIL (PMFME Division) pmfme-fpi@gov.in

PAGE 27