Common Infrastructure

Common infrastructure support would be provided to FPOs, SHGs, Cooperatives, Government agencies and private enterprises. Common infrastructure created under the PMFME scheme should also be available for other units and the public for utilization on a hiring basis for a substantial part of the capacity. The eligibility of a project under this category would be decided based on the benefit to farmers and industry at large, viability gap, absence of private investment, criticality to value chain etc. Credit linked grant would be available @ 35%. The maximum limit of the grant in such cases would be as prescribed.

The following are the focus areas for capacity building under the scheme:

1. Premises for assaying of agriculture produce, sorting, grading, warehouse and cold storage at the farm-gate.
2. Common processing facility for the processing of ODOP produce.
3. Incubation Centre should involve one or more product lines, which could be utilized by smaller units on a hire basis for the processing of their produce. The Incubation Centre may partly be used for training purposes. It should be run on a commercial basis.

FPOs/SHGs/ Cooperatives seeking funding for the common infrastructure and capital investment under the Scheme should follow the following procedure:

1. A DPR for seeking assistance under the Scheme for capital investment and common infrastructure should be prepared, based on the format as prescribed.
2. The DPR should have the necessary details of the proposal, detailed project cost, proposed manpower, turnover, marketing channel, sources of raw material, estimated profit & loss account, cash flow statement etc.
3. The DPR should be sent to the State Nodal Agency (SNA). After approval of the proposal by SLAC, SNA should recommend the proposal to Ministry of Food Processing Industries (MoFPI). Any proposal for assistance to a group for a grant above Rs.10 lakhs should be sent to MoFPI for approval.
4. After approval of the proposal by MoFPI, the proposal should be forwarded to the financial institution for sanction of loan.
5. The DPR may also contain a proposal for training support to the group members based on the training hours & modules, as prescribed and as per the cost norms of the Ministry of Skill Development and Entrepreneurship. Components of training and capacity building would be fully funded under the Scheme.
6. The assistance of Rs. 50,000/- per case would be provided to FPOs/ SHGs/ Cooperatives for preparation of DPR.
7. Disbursement of the grant should take place in the bank account of the applicant organization after the sanction of the loan by the bank.