Home BUSINESS Coronavirus financial stimulus bundle: Cupboard approves Rs 10,000 cr scheme to help micro meals processing items – Firstpost

Coronavirus financial stimulus bundle: Cupboard approves Rs 10,000 cr scheme to help micro meals processing items – Firstpost

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Coronavirus financial stimulus bundle: Cupboard approves Rs 10,000 cr scheme to help micro meals processing items – Firstpost

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New Delhi: The Union Cupboard, headed by Prime Minister Narendra Modi, on Wednesday gave approval for a brand new central scheme with an outlay of Rs 10,000 crore for offering credit-linked subsidy to 2 lakh micro meals processing items throughout the nation.

The ‘Scheme for Formalisation of Micro meals processing Enterprises’ was introduced as a part of the Rs 20 lakh crore Atma Nirbhar bundle to deal with the financial droop ensuing from COVID-19 pandemic.

Beneath the scheme, meant for the unorganised sector, the expenditure will probably be shared by the central and state governments within the ratio of 60:40, an official assertion stated.

The scheme, to be applied for 5 years until 2024-25, will present back-ended credit-linked subsidy to 2,00,000 items. It should have a cluster-based method, with a concentrate on perishables.

“There are about 25 lakh unregistered meals processing enterprises which represent 98 p.c of the sector and are unorganized and casual. Almost 66 p.c of those items are positioned in rural areas and about 80 p.c of them are family-based enterprises. This sector faces a lot of challenges…,” it stated.

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The challenges embrace incapacity to entry credit score, excessive value of institutional credit score, lack of entry to trendy expertise, incapacity to combine with the meals provide chain and compliance with well being and security requirements, it added.

“Strengthening this phase will result in discount in wastage, creation of off-farm job alternatives and support in attaining the overarching authorities goal of doubling farmers’ revenue,” the assertion stated.

 Coronavirus economic stimulus package: Cabinet approves Rs 10,000 cr scheme to support micro food processing units

Representational picture. Reuters.

To encourage micro-enterprises, the federal government stated it’s going to present a credit-linked subsidy for 35 p.c of the eligible venture value with a ceiling of Rs 10 lakh.

The beneficiary contribution could be a minimal 10 p.c and the steadiness will come from a mortgage. The federal government will present onsite talent coaching and handholding for detailed venture experiences and technical upgradation.

The federal government can even present a seed capital of Rs four lakh per Self Assist Group (SHG) to supply loans to members to fulfill their working capital requirement and for purchasing small instruments.

A grant can even be supplied to FPOs (Farmer Producers Organisation) for backward/ahead linkages, widespread infrastructure, packaging, advertising and branding.

The federal government stated the scheme is more likely to generate 9 lakh expert and semi-skilled jobs, profit almost eight lakh micro-enterprises by means of entry to info, higher publicity and formalization. It should additionally allow them to formalize, develop and develop into aggressive.

The scheme could be monitored by the central authorities’s inter-ministerial empowered committee, whereas the state-level committee will sanction and suggest proposals for the growth of micro-units and organising of latest items.

States can even put together annual motion plans for the implementation of the scheme. There could be a third-party analysis and mid-term overview mechanism, the assertion stated.

The federal government will arrange a nationwide degree portal the place candidates/particular person enterprises might apply to take part within the scheme. All scheme actions could be undertaken on the nationwide portal, it added.

Up to date Date: Might 20, 2020 20:33:03 IST

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