Kerala government starts a new Seed Capital Financial Assistance Scheme on 18 October 2021. In this SCFAS Scheme, the assistance is given to Self Help Groups (SHGs) as part of the Pradhan Mantri Formalisation of Micro food processing Enterprises (PM-FME) project. In this article, we will tell you about the complete details of the Kerala Seed Capital Financial Assistance Scheme.
What is Kerala Seed Capital Financial Assistance Scheme 2021
Kerala Seed Capital Financial Assistance Scheme 2021 launched to provide financial assistance to SHGs as a part of PM FME Scheme. The state govt. is working on the idea of starting an online platform to deliver products manufactured by Kudumbashree and other Micro, Small, Medium production units. Kerala govt. has already initiated preliminary level talks.
Assistance to SHGs as Part of PM FME Scheme
Central government is already implementing Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme. PM FME Scheme is running in association with the state governments to give incentives to food processing industries. The new PM FME Scheme is intended to give financial, technical, and business assistance to tiny food processing enterprises.
One District One Product (ODOP) Scheme was devised to identify one product from each district and to promote its sale. This scheme includes procuring raw materials using common facilities for production and helping to widen the market for the product. The food processing ministry also helps entrepreneurs in building logistical support and developing the brand building for the product.
Assistance Amount to Self Help Groups
- Members of the self-help group will get initial capital up to Rs. 40,000 to purchase machines from the PMFME scheme.
- Members of the self-help groups involved in the food processing industry are entitled to get 35% of the credit linked capital subsidy subject to a maximum of 10 lakh rupees.
- Capital investment of the SHG federation could also get a 35 percent subsidy through credit-linked grants.
The food processing ministry through the Atma Nirbhar Abhiyan project will give Rs. 4,30,51,096 as seed capital fund to 1440 Kudumbasree units in Kerala.