TNULM SHGs form an integral part of the PMFME scheme in terms of utilizing the seed capital fund, for improving their micro food processing enterprises.

Prime Minister Formalisation of Micro food processing Enterprises (PMFME) Scheme is an initiative of Ministry of Food Processing Industries (MoFPI) under the Aatma Nirbhar Bharat Abhiyan. It aims to enhance the competitiveness of existing micro-enterprises in the unorganized segment of the food processing industry and promote formalization.

The scheme has a special focus on supporting Groups engaged in Agri-food processing such as Self-Help Groups (SHGs), Farmer Producer Organizations (FPOs), and Producers Cooperatives along their entire value chain. The PMFME Scheme supports the SHGs and their federations for improving the quality and scale of their micro food processing enterprises by providing:

• i. Seed capital @ Rs. 40,000/- per SHG member for working capital and purchase of small tools.
• ii. Credit-linked subsidy@ 35% for capital investment of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit.
• iii. Credit-linked Support for Common infrastructure @ 35% of the project cost.
• iv. Support for branding & marketing to micro units.
• v. Training and capacity building.

The urban poor mobilised under DAY-NULM and their micro production units are one among the potential beneficiaries of the PMFME scheme. TNULM is facilitating the members of SHGs and their federations to avail the benefits under the scheme to upgrade their micro food processing units for improving quality and scale. Funds have been released for 525 applications consisting of 769 beneficiaries at the cost of INR 2.84 crores for FY 2021-22. Separate guidelines have been issued by TNULM for ensuring prompt repayment of the seed capital loan by SHG beneficiaries back to the ALFs.