Madhya Pradesh: Rs 500 crore approved for Pradhan Mantri Formalisation of Micro food processing Enterprises Scheme

Bhopal: In the Cabinet meeting held today under the chairmanship of Chief Minister Shri Shivraj Singh Chouhan, the implementation of the centrally sponsored scheme Pradhan Mantri Formalisation of Micro Food processing Scheme (PMFME) was approved for the year 2020-21 to 2024-25 with a provision of Rs 500 crore.

In this, a district level committee has been formed under the chairmanship of the collector to recommend proposals for project approval. There will be a state level approval committee under the chairmanship of the Chief Secretary for projects with grant assistance up to Rs 10 lakh. The inter departmental ministerial group will be able to approve more than Rs 10 lakh.

The scheme is based on “Ek Zila Ek Utpad” with cluster approach. Private entities will get a maximum of 10 lakh credit link grant. FPO / SHG / Cooperatives will have 35 percent credit link grant (minimum turnover of Rs one crore) on capital investment, training and marketing. SHGs will be given a seed capital of Rs 40 thousand per member. Assistance will be provided in branding and marketing.

Rural (Marginal, Small Farmers and Landless Agricultural Labourers) Loan Waiver Bill

The Cabinet authorized the Revenue department for all proceedings to be passed by the Legislative Assembly and to obtain the President’s permission to introduce the Bill in the Legislative Assembly in accordance with the proviso to Article 304 (b) of the Constitution in relation to the Madhya Pradesh Rural (Marginal and Small Farmers and Landless Agricultural Workers) Loan Waiver Bill 2020.

Earlier, provisions have been made for the relief of indebtedness for the members of the Scheduled Tribes of Madhya Pradesh residing in the scheduled areas of the state under the Madhya Pradesh Scheduled Tribes Loan Waiver Act, 2020. The Madhya Pradesh Rural (Marginal and Small Farmers and Landless Agricultural Labourers) Loan Waiver Bill 2020 also has similar provisions as proposed in the Bill.

The landless agricultural labourers, marginal farmers and small farmers (excluding members of the Scheduled Tribes of Madhya Pradesh residing in the scheduled areas of the state) have to constantly face the issue of loans being given to them against rules and procedures and at very high interest rates. Consequently, they are subjected to financial loss, mental torture and exploitation. Madhya Pradesh Rural (Marginal and Small Farmers and Landless Agricultural Labourers) Loan Waiver Bill 2020 has been proposed to provide relief to such landless agricultural labourers, marginal farmers and small farmers by waiving certain loans including interest amount given to them till August 15, 2020.