Govt disburses Rs 25.25 cr seed capital to SHGs in first year of PMFME

New Delhi: The Centre on Tuesday said it has disbursed Rs 25.25 crore in the first year of the PMFME scheme for meeting seed capital requirements of eligible 8,000-odd Self Help Group (SHG) members engaged in food processing activities.

The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME), launched on June 29 last year, aims to enhance the competitiveness of existing individual micro-enterprises in the unorganised segment of the food processing industry and promote formalisation of the sector.

The scheme envisages financial support of Rs 40,000 for working capital and purchase of small tools for each member of SHGs engaged in food processing activities. This is being implemented with the support of National Rural Livelihood Mission (NRLM) and its network of State Rural Livelihood Mission (SRLM).

"To date, NRLM has recommended 43,086 SHG members to state nodal agencies for an amount of Rs 123.54 crore. State nodal agencies have approved the seed capital of 8040 members and disbursed the amount of Rs 25.25 crore to SRLM," the government said in a statement.

In case of the other component of the scheme — promoting 'One District One Product (ODOP) — the government said it has approved ODOP for 707 districts for 35 states and Union Territories, including 137 unique products as per the recommendations received

by states.