Agriculture Infrastructure Fund

(AIF) & PMFME

Satheesan Kartha, DGM/ FM, BIRD, Mangaluru

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Agriculture Infrastructure
Fund (AIF)

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 Present Status of Agriculture Markets

There are 585 APMC markets

22,000 GrAMs
Govt. targets to minimize movement to 5 KM
One Markets for Every 78 SqKM
Present condition
< 100 SqKM - No state has
101-200 Punjab, Haryana & WB
201-400 AP, Assam, MH, Odhisa, Kar, UP & Jarkhand
601-800 TN, Goa, Guj, MP, Chatisgarh and Rajashtan
>801 Uttarakhand and HP

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Present Status of Agricultural Marketing

There are four different systems of Agricultural marketing in India.

Sale in Villages – 86% SMF
Sale in Markets
Sale in Mandies
Co-operative Marketing

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Agricultural Supply Chain

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIF Background
Agriculture and allied activities are the primary source income for of our rural population.
(58%)
>85% of the farmers are SMFs having less than 2 hectares of land (manage 45% of
agricultural land)
They are prone to all risks associated with production, storage and marketing. They are
mostly governed by the market dynamics
The Hon’ble FM announced on 15.05.2020 AIF for farm-gate infrastructure creation
Rs. 1 lakh crore will be provided for funding Agri Iinfra Projects at farm-gate &
aggregation points
MT and LT loan facility for viable projects relating to PH management Infrastructure and
community farming assets through incentives and financial support

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Agriculture Infrastructure Fund
Agriculture Infrastructure Fund (AIF) - Central Sector
Scheme
Scheme of Department of Agriculture, Cooperation &
Farmers’ Welfare Ministry of Agriculture & Farmers’ Welfare,
Government of India
Infrastructure is crucial for agriculture development and for
taking the production dynamics to the next level.
Post harvest stage the produce can be optimally utilized with
opportunity for value addition and fair deal for the farmers
Address the vagaries of nature, the regional disparities,
development of human resource and realization of full
potential of our limited land resource

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Objectives of the Scheme
Farmers (including FPOs and PACS)
Improved marketing infrastructure to sell directly to a
larger base of consumers and hence, increase value
realization. Increased Income.
Logistics infrastructure - farmers will be able to reach
market with reduced post-harvest losses and a smaller
number of intermediaries.
Modern packaging and cold storage system access allow
farmers to decide when to sell in the market. Avoid
distress sale.
Community farming assets for improved productivity and
optimization of inputs. This will result in substantial
savings to farmers.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Objectives of the Scheme

Government
Able to direct PSL in the currently unviable projects by
supporting through interest subvention, incentive and
credit guarantee. This will initiate the cycle of
innovation and private sector investment in agriculture.
Due to improvements in post-harvest infrastructure,
national food wastage will be reduced and the sector
become competitive.
Able to structure viable PPP projects for attracting
investment in agriculture infrastructure

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Objectives of the Scheme
Agri entrepreneurs and startups
With a dedicated source of funding,
entrepreneurs will push for innovation in
agriculture sector by leveraging new age
technologies including IoT, AI, etc.
It will also connect the players in ecosystem and
hence, improve avenues for collaboration
between entrepreneurs and farmers
Will ensure quality raw materials at assured price.
Better planning and improved efficiencies.
Viable Agri Business and scope for improving
Agri Exports

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Objectives of the Scheme
Banking ecosystem
Credit Guarantee and Interest Subvention will reduce
the lending risk.
Will help to enlarge customer base and diversification
of portfolio
Consumers
With reduced inefficiencies in post-harvest ecosystem,
larger share of farm produce reaches the market and
hence, better quality at reasonable prices.
Overall, the investment via the financing facility in
agriculture infrastructure will benefit all the eco-
system players

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Agriculture Infra Fund (AIF)
Implementation Period
Operational from 2020-21 to 2029-30.
Interest subvention eligible for maximum 7 years
Disbursement in four years starting with sanction of
Rs. 10,000 crore in the first year and Rs. 30,000 crore
each in next three financial years.
Moratorium for repayment under this financing facility
may vary subject to minimum of 6 months and
maximum of 2 years

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Government Budgetary Support
Interest Subvention:
3% per annum up to a loan limit of Rs. 2 crore for a
maximum period of 7 years.
In case of loans beyond Rs.2 crore, then interest
subvention will be limited up to 2 crore
Credit Guarantee:
Credit Guarantee Fund Trust for Micro and Small
Enterprises (CGTMSE) scheme for a loan up to Rs. 2
crore.
The fee for this coverage will be paid by the
Government.
In case of FPOs the credit guarantee may be availed
from the facility created under FPO promotion scheme
of DACFW.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIF - Eligible Beneficiaries

source: unsplash

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIF - Eligible Projects

Post Harvest Management Projects like

Supply chain services including e-
marketing platforms
Storage structures, Warehouses and Silos
Pack houses
Sorting, Grading and Assaying units
Cold chains
Logistics facilities
Primary processing centers
Ripening Chambers

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIF - Eligible Projects
Viable - community farming assets like
Organic inputs production
Bio stimulant production units
Infrastructure for Smart and Precision agriculture.
Projects identified for providing supply chain
infrastructure for clusters of crops including export
clusters.
Projects promoted by Central/State/Local
Governments or their agencies under PPP for
building community farming assets or post harvest
management projects

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ILLUSTRATIVE ACTIVITIES UNDER AIF
CROPS ELIGIBLE NOT ELIGIBLE
Cereals Cleaning, Destoning, Sorting & Grading, Fermentation, Baking,
(Wheat/Paddy Hulling, Milling, Pounding, Grinding, Puffing, Flaking, Frying,
etc.) Tempering, Parboiling, Soaking, Drying, Extrusion, Blending, Roasting
Sieving, Irradiation

Fruits & Washing, Cleaning, Drying, Sorting, Dehydration, Concentrated

Vegetables Grading, Blanching for primary processing, products, Canning, Juice
Cooling, Waxing, Conditioning Extraction, Sterilisation

Oilseeds Cleaning, De-stoning, Dehusking, By-product utilisation,

Decorticating, Winnowing, Oil extraction Refining, Neutralisation,
(Ghani, hydraulic press etc.) Bleaching

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ILLUSTRATIVE ACTIVITIES UNDER AIF
CROPS ELIGIBLE NOT ELIGIBLE
Pulses Cleaning, Destoning, Drying, Sorting & Canning, Besan, Papads, Pulse
Grading, Dehusking, Splitting, Dehulling, based foods, Puffed Chikpea,
Milling, Irradiation Pulse polishing

Cotton Cleaning, Drying, Ginning, Pressing & Fibre finishing, Scouring,

Bailing, Lintering, Purifying, Spinning, Weaving

Sugarcane Cane unloading, Cleaning, Cane breaking,

Cane milling, Straining, Evaporators,
Centrifugation, Storage tanks, Dryers

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ILLUSTRATIVE ACTIVITIES UNDER AIF
CROPS ELIGIBLE NOT ELIGIBLE
Spices Cleaning, Drying, Sorting, Boiling, Roasting, Sterilising, Thermal
Polishing, Grinding, Packaging, Storage, Treatment
Irradiation
Cocoa Cleaning, Gathering of pods, Sorting, Roasting, Winnowing,
Breaking of pods, Fermentation of cocoa, Alkalization
Drying, Storage
Coffee Cleaning, Drying of cherries, Washing, Roasting, Grinding,
Hulling, Pulping Extraction
Jute Cutting, Retting, Stripping, Washing,
Drying, Bailing, Packing, Storage

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ILLUSTRATIVE ACTIVITIES UNDER AIF
CROPS ELIGIBLE NOT ELIGIBLE
Cashew Cleaning, Streaming in boiler, Shell cutting, Drying,
Peeling, Grading, Packaging
Moringa Washing, Drying, Milling, Storage, Packaging
Tea Cleaning, Withering, Rolling, Fermentation, Drying,
Sorting
Rubber Mastication, Mixing, Shaping, Curing, Irradiation
Herbal & Cleaning, Sorting, Drying Syrup, Pills, Cream,
Medicinal Roasting, Frying,
Crops Distillation,
Concentration

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 OTHER ACTIVITIES ELIGIBLE UNDER AIF

• Scheme limited to Primary Processing units. However, some components of Advance

Processing units viz. warehouse, cold storage, pack houses, collection centres are
eligible.
• Custom Hiring Centre eligible – Sub Mission on Farm Mechanisation
• Convergence with PM-KUSUM for standalone solar pumping component B and
solarisation of grid-connected pump under Component C
• Mushroom cultivation only if undertaken as part of community farming
• Milk chilling Centres/Secondary processing not eligible
• Sorting, Grading & Packing units at Rythu Bharosa Kendras – AP Model

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIF - Size of the financing facility

Rs. 1 Lakh Crore to be provided by banks and FIs

Eligible beneficiaries
PACS, Marketing Cooperative Societies, FPOs, SHGs, Farmers, JLGs, MSCs
Agri-entrepreneurs and Startups
Central/State agency or Local Body sponsored Public Private Partnership
(PPP) Projects.
PACS who have adopted digitization for handling its operations will be given
preference under this scheme

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Agriculture Infra Fund (AIF)
• Rs. 1 Lakh Crore to be provided by banks
and FIs
Participating institutions
Scheduled Commercial Banks and Small Finance
Banks
Scheduled Cooperative Banks
Regional Rural Banks (RRBs),
Non-Banking Financial Companies (NBFCs) and
National Cooperative Development Corporation
(NCDC)
Signing of MoU with NABARD / DAC&FW is
pre-requisite
Need based refinance support will be made
available by NABARD

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Agriculture Infra Fund (AIF)
Cap on lending rate
Will be decided by DAC&FW so that the interest rate remains affordable & benefit of
interest subsidy reaches end beneficiary
Project Management and handholding support
An online platform will be made available in collaboration with lending institutions to
provide necessary information and loan sanctioning facility.
Agri Infra fund will be managed and monitored through an online MIS platform
Project reports with indicative unit costs will be prepared by Central and State PMUs for
guidance of beneficiaries and lending entities
Lending Institutions to decide criteria for selection of eligible borrowers in consultation
with monitoring committees, PMUs and keeping in mind the viability of the projects and to
avoid NPA
Time limit for processing loan applications maximum 60 days

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Agriculture Infra Fund (AIF)
Convergence
Any grant or subsidy available under any present or future
scheme of Central/State government can be availed.
In cases of capital subsidy such amount shall be considered as
promoter’s contribution.
However, a minimum of 10% of the project cost shall be
mandatory as promoter’s contribution
Monitoring framework
Real-time monitoring by the National, State and District Level
Monitoring Committees
Effective feed-back about the implementation of the proposed
scheme
All assets created shall be Geo tagged.
The District Monitoring Committee and respective Lending
entity shall ensure updation of information on such geo tagged
assets on the online portal
ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 Agriculture Infra Fund (AIF)
Linkage with PFMS
IS and CG support will be released to Banks and
lending institutions through PFMS.
Disbursal of funds by lending entities to
beneficiaries under this scheme shall be in Aadhaar
linked bank account
Criteria for selection of Eligible Borrower
Lending institutions will decide criteria for
selection of eligible borrower in consultation with
NABARD and Monitoring committees, PMUs and
keeping in mind the viability of the projects and to
avoid NPA.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 National Agriculture Infra Financing Facility

Check list of documents

Bank’s loan application form / Customer Request Letter for AIF Loan duly
filled and signed
Passport size photographs of the promoter/partners/director
Identity proof – Voter ID card/PAN card/Aadhaar card/Driving license
Address Proof :
Residence/Business Office/Registered Office:
Proof of Registration:
In case of Company : Article of Association
In case of Partnership : Certificate of Registration of Firm with Registrar of Firm
In case of MSMEs : Certificate of Registration with DIC/Udyog Aadhar Copy

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 National Agriculture Infra Financing Facility

Check list of documents

Income Tax Return for last three years, If available.
Audited Balance Sheet of last 3 Years, If available.
GST Certificate, if applicable.
Land ownership records (for primary security)
ROC Search Report of the Company
KYC documents of the promoter/firm/company
Copy of Bank Statement for last one year (If available)
Repayment track record of existing loans (Loan Statement)
Net Worth Statements of promoter
Detailed Project Report
As applicable - Local authority permissions, Layout plans/estimates, Building sanction

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 National Agriculture Infra Financing Facility

• Subvention allowed till loan is under Standard Category. Allowed from date of
upgradation of account to standard category
• Loan can be availed under Off-line mode but mandatory for Banks to make entry on
online platform to get IS benefit
• AIF can be converged with any available State & Central Govt schemes
• Minimum 10% of project cost as beneficiary’s contribution mandatory exclusive of
capital subsidy, if any
• IS and CG cover will be released to Banks through PFMS

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIF – Process Flow Chart

• Applicant registers on online portal www.agriinfra.dac.gov.in

• Applicant logs-in the portal and applies for loan by filling application on online portal
• PMU of AIF verifies the application
• Application along with DPR will be forwarded to lending institution opted
• Banks to login, verify the eligible applications and accord sanction online
• Once loan sanctioned by Lending Institution, disbursement will be done
• After disbursement, IS and CG will be released by GoI to Bank & CGTMSE

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIF – Implementation & Monitoring

• DLMC (District level Monitoring Committee) will be the first line of implementation
and monitoring system
• Will identify beneficiaries, examine the proposals and recommend to SLMC
• Will set targets in consultation with SLMC and monitor the progress
• Will maintain dashboard in collaboration with PMU
• Will be responsible for smooth implementation of the scheme and resolve any
issues at district level and support the district administration wherever required.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 National Agriculture Infra Financing Facility

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Prime Minister Formalization of Micro Food
Processing Enterprises (PMFME)

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 OVERVIEW OF MICRO FOOD PROCESSING SECTOR

• 25 lakh food processing enterprises which are unregistered and informal.

• 7% of investment in plant & machinery
• 3% of outstanding credit,
• 74% of employment (a third of which are women)
• 12% of output and 27% of the value addition in the food processing
sector.
• 66% of these units are located in rural areas
• 80% of them are family-based enterprises.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 CHALLENGES OF MICRO FOOD PROCESSING SECTOR

• Lack of innovation and access to modern technology

• Deficient quality and food safety control systems
• Lack of branding & marketing skills
• Capital deficiency and low bank credit

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 AIM OF PMFME SCHEME

• Enhance the competitiveness of existing individual micro-enterprises in

the unorganized segment of the food processing industry and promote
formalization of the sector; and
• Support Farmer Producer Organizations (FPOs), Self Help Groups
(SHGs) and Producers Cooperatives along their entire value chain.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 OBJECTIVES

• To support existing individual micro enterprises

• Increasing access to credit
• Integration with organised supply chain by strengthening branding &
marketing
• Increased access to common services – laboratories storage, packaging
etc.
• Strengthening of institutions in Research & Training

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 SCHEME COMPONENTS

• Upgrading existing micro units- credit linked subsidy @ 35% subject to a

maximum of ₹ 10 lakhs
• FPOs/SHGs/cooperatives- credit linked capital investment grant @35%
• Seed capital support of ₹ 40,000 to SHG members for working capital &
small tools
• Common infrastructure – credit linked grant @35 %
• Support for marketing & branding – 50 % grant

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ELIGIBILITY CRITERIA – INDIVIDUAL MICRO UNITS

• Existing micro food processing units in operations

• Existing units should be those identified by the Resource Person on
physical verification
• The enterprise should employ less than 10 workers
• The enterprise should preferably be involved in the ODOP of the district
• The applicant should have ownership right of the enterprise

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ELIGIBILITY CRITERIA – INDIVIDUAL MICRO UNITS

• Ownership status of enterprise could be proprietary / partnership firm

• The applicant should be above 18 years of age and at least VIII standard
pass
• Willingness to formalize and contribute 10 % of project cost and obtain
Bank loan;
• Cost of the land should not be included in the Project cost

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ELIGIBILITY CRITERIA – GROUPS

• It should preferably be engaged in processing of ODOP produce;

• It should have minimum turnover of Rs.1 crore;
• The cost of the project proposed should not be larger than the present
turnover;
• The members should have sufficient knowledge and experience in for a
minimum period of 3 years.
• The cooperative/FPO should have sufficient internal resources to meet
10% of the project cost and margin money for working capital;

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 SUPPORT TO SHGs

• Seed capital @ Rs. 40,000/- per member of SHG for working capital and
purchase of small tools
• Priority given to those involved in ODOP produce;
• Seed capital would be provided at the federation level of SHGs;
• This would be given as grant to the SHG federation by SNA/ SRLM.
• SHG federation would provide this amount as a loan to the members of
SHGs to be repaid to the SHG

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ELIGIBILITY CRITERIA FOR SHGs

• Members presently engaged in food processing

• Commit to utilize this amount for working capital and purchase of small
tools
• SHG Federation should collect the following basic details for each of the
members:
• Details of the product being processed;
• Other activities undertaken;
• Annual turnover;
• Source of raw materials and marketing of produce

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 SUPPORT FOR COMMON INFRASTRUCTURE

• Support to FPOs, SHGs, cooperatives, any Government agency or private

enterprises.
• Common infrastructure created should also be available for other units and
public to utilize on hiring basis
• Types:
• Premises for assaying of agriculture produce, sorting, grading, warehouse and cold
storage at the farm-gate;
• Common processing facility for processing of ODOP produce;

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 BRANDING & MARKETING SUPPORT

• Following the ODOP approach, marketing & branding support would only be
provided for such product at the State or regional level.
• Eligible items for support
• Training relating to marketing to be fully funded under the scheme;
• Developing a common brand and packaging including standardization to
participate in common packaging;
• Marketing tie up with national and regional retail chains and state level
institutions;
• Quality control to ensure product quality meets required standards.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ONE DISTRICT ONE PRODUCT

• The scheme adopts ODOP approach -focus

• Preference would be given to those producing ODOP products.
• However, existing units producing other products would also be
supported.
• New units, whether for individuals or groups would only be supported for
ODOP products.
• Support for common infrastructure and marketing & branding would only
be for ODOP products.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 APPLICATION FLOW
Groups (FPOs,
Individual Entrepreneurs Co-operatives, SHGs)

Submission of application in Offline submission of application by

groups with DPR.
portal (https://mofpi.nic.in/pmfme/)

District Resource District Level Committee

Persons

District Level Committee State Nodal Agency

Banks for sanction of Banks for sanction of Loan

loan
ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 ROLE OF BANKS

• Sanction the loan

• Disburse the sanctioned loan amount in accordance with normal banking
practice.
• Lending bank report on loan sanction to Nodal Bank at National Level.
• State and Central Governments would release grants to Nodal Banks.
• Nodal Banks would transfer grants to concerned lending bank.
• Open mirror account in the name of beneficiary and keep the grants in
mirror account.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 ROLE OF BANKS

• After a period of 3 years if the beneficiary’s account is standard and unit is

operational grant amount would be adjusted in the bank account of the
beneficiary
• If account becomes NPA prior to 3 years grant amount would be adjusted
towards repayment of beneficiary.
• No interest would be payable by the borrower for the grant amount.
• If banks refused to sanction to loan, application would move to second
preferred bank of beneficiary.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 HIGHLIGHTS OF THE SCHEME

• Credit linked subsidy @ 35%

• Benefit of credit guarantee coverage under CGTMSE
• Interest subvention of 2% under interest subvention scheme for incremental
credit to MSMEs 2018

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 COMMON ERRORS NOTICED IN APPLICATIONS

• Non-ODOP product registered by New individual

• Personal contribution entered by the applicant is less than 10 or greater than 40
• Stock in process, Receivable by and finished goods are not entered by the applicant
• The payback period (years required to repay the loan) entered by the applicant is 0
or greater than 10 years
• Project the implementation period is 0 or greater than 9 months
• The rate of Interest is left zero or very high
• Payables i.e., Installments and Interest on bank finance are getting wrongly
calculated
• Net profit is negative or zero
• Incorrect applications from lending bank & DLC portal are shifted to DRP for
rectification of errors in consultation with applicants

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 REASONS FOR REJECTION OF LOANS

• Insisting for Mortgage of property inspite of credit guarantee

• Insisting for land conversion documents
• Area jurisdictions / restrictions for Bank/Branches
• No directions / intimation from their Head / Regional Office
• Balance sheets of previous 3 years from existing entrepreneurs
• Low CIBIL scores of applicants
• Default of applicants in other Bank/Branches
• Less staff in branches due to Covid crises
• Portal Problem-some branches not able to access PMFME portal
• Present Manger getting Transfer (April – May) informing applicants to approach
new Manager

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 INSTITUTIONAL ARCHITECTURE OF THE SCHEME
Inter-Ministerial Committee (IMEC)
MoFPI (National Programme Division)

Project Executive
Committee (PEC)
Committee on Capacity
Building and Research National Programme
Management Unit (NPMU)

National Apex State Level Approval Committee

Institutions (SLAC)
NIFTEM / IIFPT State Nodal Department
etc.
State Programme
State Nodal Department/Agency Implementation Unit (SPMU)
State Level Technical
Institutions
District Level Committee (DLC)

Resource Persons (RP)

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 Modifications in the guidelines of PMFME
Support to individual Micro Enterprises
Component Old - 29/06/2020 Modification -18/05/22 Remark
Individual
Proprietorship firms
Partnership firms
FPO (Farmer Producer
For SHGs/FPOs/Coop, there
Organization)
Eligibility Proprietor / Partnership is no requirement of minimum
NGO(Non-Government
Turnover and Experience.
Organization)
SHG (Self Help Group)
Co-op (Cooperative)
Pvt Ltd. Companies.
Age and Above 18 Years , no minimum Relaxing minimum educational
18 Years and Min 8th std Pass.
Qualification educational qualification qualification criteria
Proposal for both ODOP and
Existing Enterprise – Both ODOP
Existing Enterprise – Both ODOP & Non- non ODOP are eligible for
Eligible & Non-ODOP.
ODOP. support
enterprise New Enterprise – Both ODOP &
New Enterprise – Only ODOP. ODOP Proposals will be
Non-ODOP.
preferred
ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 Support to individual Micro Enterprises
Component Old - 29/06/2020 Modification -18/05/22 Remark

Individual –Credit linked capital subsidy

35% of Project cost max Rs.10.00 Lakh For all- Individual/Proprietorship / Partnership
this includes cost of lease or rental work /FPO/NGO/SHG/ Co-op / Pvt Ltd.
shed up to 3 years. Companies- credit linked capital subsidy @35%
of eligible project cost max Rs.10.00 Lac for For SHGs/FPOs/Coop and other
Financial Support / eligible projects. Eligible project cost comprises eligible organisations, the eligible
Assistance cost of plant & machinery and technical civil project cost is not related to the
work but excludes any cost of land/rental or existing Turnover of the Enterprise.
lease work shed .
Group – FPO / Producer Co-Operatives Technical Civil Work should not be more than
and SHG - 35% of Project cost. Upper 30% of the eligible project cost.
limit of subsidy would be as prescribed.

Restructuring of Restructuring by bank for stressed unit is Qualifying for restructuring by bank
--------
loan by bank allowed for upgradation/expansion. for up gradation / Expansion

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Support to individual Micro Enterprises
Component Old - 29/06/2020 Modification -18/05/22

Applicant is also eligible for Interest Subvention and Top Up convergence with other
Convergence -
relevant Govt Sponsored Schemes.

Beneficiaries
availing support Applicant/enterprise is eligible for bank loan under the Scheme, even if he has availed
-
under other Govt bank loan in other Subsidy Linked Schemes of Govt.
Schemes

Lending Banks may consider sanctioning need based working capital limit to the
Working Capital
- beneficiaries, as admissible. However, no subsidy would be provided on the working
Finance
capital.

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Support to Group Category for Setting up of Common Infrastructure
Components Old - 29/06/2020 Modification -18/05/22 Remark

FPOs/FPCs
Eligible FPOs/SHGs/Co-op/Govt. agency/ Private Co-op (Cooperatives)
organization enterprises. SHGs (Self Help Groups) /and its federation
Govt. agencies.

Turnover Min. 1.00 Crore No pre condition.

Experience Min 3 Years No pre condition.

Proposal for ODOP or Non-ODOP are Support to both

Product The product should be from district ODOP eligible for assistance. However ODOP ODOP and as well as
proposals would be preferred. Non -ODOP.

Credit linked capital subsidy @35% of eligible

Support / Credit linked capital subsidy @35% of eligible
project cost, Maximum limit of grand would be
Assistance project cost with max ceiling of Rs.3.00 crore.
decided as prescribed.
ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 Support to Group Category for Setting up of Common Infrastructure
Components Old - 29/06/2020 Modification -18/05/22 Remark
 Comprises Cost of Plant & Machinery and Technical
civil work.
 Technical civil work should not be more than 30% of Along with plant and
Project components & Eligible project cost. machinery only technical civil
All Project components
Cost Breakup  Exclude cost of land /rental or lease work shed. work would be considered for
 Total eligible project cost should not exceed Rs. 10 support / assistance
Crore. Credit linked capital subsidy @35% with max
ceiling of Rs.3.00 crore.

Should be available for other units
Capacity utilization on
& public to utilize on hiring basis
hiring basis
for substantial part of capacity.
Substantial capacity of Common Infrastructure Facility
(CIF) as well as processing line should be available for use
by other units and public on hiring basis.

SLAC is empowered to approve/sanction/reject the project

proposals received under aforementioned components of
the Scheme and need not be referred to MoFPI for approval.
Approving Authority SLAC/MoFPI SLAC may also consider delegating the powers for approval
of the projects under various components to the Nodal
Department implementing this Scheme by prescribing
appropriate limits.
ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 DRP
Component Old- 27/12/2021, 24/05/2021, 24/12/2020, 29/06/2020. Modification -18/05/22
1.Any suitable person(s) (like retired Govt/Bank Officials,
Insurance agents, Bank mitras, consultancy firms, individual
1. Bachelors or equivalent degree in any field with relevant
professionals etc) facilitating/ handholding the individual micro
knowledge/ experience in DPR preparation ( 27.12.2021)
food processing enterprises applicants may be recognised as DRP
2. Involvement of CAs as DRP is not admissible.(24.05.2021)
Eligible criteria by SNA.
3. DRP of a particular district can work in the more than one
for 2.There may be more than one DRP in a district and DRP of any
adjacent district. ( 24.05.2021)
Appointment of district may mobilize/ handhold applicants from other districts
4.Food Domain- Degree / Diploma in Food Technology with
DRP. also.
or Without Experience.( 24.12.2020)
3.The eligibility criteria for selection of DRP would be decided by
5. Non- Food Domain- Degree in Agriculture & experience in
SNA.
Food Technology and Preparing DPR (24.12.2020)
4. Engaging DRP for group category component of the
scheme is not mandatory
1.The payment of Rs. 20,000/- to the DRPs would be in 2
1. The payment of Rs. 20,000/- to the DRPS would be in 2
installments i.e. 50% of the payment would be made after sanction
Financial installments i.e. 50% of the payment would be made after
of bank loan.
Assistance to sanction of bank loan.
2. And remaining 50% after the completion of the unit and also
DRP for 2. And remaining 50% after the completion of the unit and also
obtaining FSSAI Certificate, Udyam Certificate and GST
Individual obtaining FSSAI Certificate, Udyam Certificate and GST
registration (wherever required).
application. registration (wherever required) and with completion of
3. Second installment of payment to DRP would not be
training of beneficiaries.
linked with completion of training of beneficiaries.
ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>
 List of Food Processing Activities not Eligible for
Assistance Under the Scheme.
• Trading and selling of unprocessed Millets/Cereals/Spices etc.
• Unprocessed or Loose Milk (Selling of Milk/Curd)
• Trading and selling of fruits and vegetables
• Trading and selling of unprocessed Minor Forest Product
• Bee Keeping/Loose selling of Honey
• Loose selling, trading and repacking of oil
• Trading and selling of groundnut, Arecanut (Exception: Any proposal for export variety
would be reviewed on case to case basis. State Government to take prior approval from
MoFPI for such cases.)
• Poultry, Piggery, Goatery or any other rearing activity of animals
• Trading and selling of fresh Fish/ meat/chicken etc.,
• Repacking of manufactures products
• Canteen , grocery, hotel, tiffin services, restaurants or any other food services enterprises

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>

 Thank You

ग ाँव बढ़े तो दे श बढ़े www.nabard.org /nabardonline Taking Rural India >>