How To Get Food Processing Enterprises Subsidy Under PMFME Scheme in Rajasthan

In this article we will Discuss about Food Processing Business Subsidy in Rajasthan under PMFME Scheme. If any entprenuer wants to setup Food Processing Business than he can apply for Subsidy under the PMFME Scheme in Rajasthan

Food Processing Business Subsidy

How much Food Processing Business Subsidy is provided by Government :

Individual micro food processing units would be provided capital subsidy @35% of the eligible project cost with a maximum ceiling of Rs.10.0 lakh per unit.

What is Eligible Project Cost to Avail Food Processing Business Subsidy :

  • It includes
  • Cost of Plant & Machineries
  • Technical Civil Work (Maximum 30% of Eligible Project Cost)
  • Excludes Cost of land/rental or lease work shed.

Quantum of Loan :

The project under this scheme shall be eligible for a loan up to 90% of the estimated/actual project cost on submission of viable projects be eligible beneficiaries.

Owner contribution should be a minimum of 10% of the eligible project cost.

Eligibility criteria for individual micro Food Processing Enterprises :

  • Eligible for both existing and new micro food processing enterprises for expansion/up gradation of existing food processing enterprises or setting up of new micro food processing enterprises are eligible under this scheme.
  • Food Processing means any operation that manufactures/process food for human and animal consumption.
  • Micro food processing enterprises means food processing units in operations with investment not exceeding Rs.1 crore and turnover not exceeding Rs.5 crore.
  • The enterprise should be unincorporated and should employ less than 10 workers
  • The applicant should have an ownership rights of the enterprise.
  • Ownership status of the enterprise could be proprietary / partnership firm/Pvt Limited Company/ FPO/NGO/SHG/Co-Operative.
  • The applicant should be above 18 years.
  • Only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse and children
  • Willingness to formalize and contribute10% of project cost and obtain Bank loan

Documents Required for getting subsidy/Loan:

  • PAN Card
  • Photo & Copy of Aadhaar card of all promoters/partners/directors
  • Address Proof (Not before 2 months) i.e. Electricity, telephone, Water Bill etc.
  • Description of unit/factory
  • 6 months’ Bank Statement
  • Quotations of Plant & Machineries
  • Estimates for  enterprises  building shed
  • In principle approval letter from the bank

Not Eligible Food Processing Enterprises Subsidy

  • Trading & 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 products
  • Bee Keeping/Loose selling of Honey
  • Loose selling, trading and repacking of Oil
  • Trading and selling of groundnut, Areca nut.
  • Poultry, Piggery, Goatry or and rearing activity of animals
  • Trading and selling of fresh fish/meat/chicken etc.
  • Repacking of manufacturing products.
  • Canteen, grocery, hotel, Tiffin services, restaurant or any others food service enterprises.

Interest Subsidy under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY) provides subsidized loans through Financial institutions to facilitate the establishment of enterprises in the state and to provide new employment opportunities to all sections of the society.

Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Role of Financial Institutions under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

Under the scheme, loans will be provided for manufacturing, service and business enterprises through financial institutions like (Nationalized Commercial Bank, Private Sector Scheduled Commercial Bank, Scheduled Small Finance Bank, Regional Rural Bank, Rajasthan Financial Corporation, SIDBI and Urban Cooperative Banks).

Which Type of Enterprise is eligible

Along with newly established enterprises, pre-established enterprise will also be eligible for expansion / diversification / modernization projects.

Who Can Apply

Under the scheme Individual applicants as well as institutional applicants (self-help groups / societies / partnership firms / LLP firms / companies) will also be eligible. The establishment of the enterprise under the scheme will be Rajasthan State. The minimum age of the individual applicant shall be 18 years.

Loan Amount under Scheme

Under the scheme, loan up to Rs. 10 crore will be available for new Manufacturing and Service Enterprises and Rs. 1 Crore for units going for expansion/diversification/ modernisation . The maximum limit of loan for business will be Rs. 1 crore. The nature of the loan will be composite loan, term loan and working capital (including CC Limit). As per RBI guidelines, collateral security will not be needed on loans upto Rs. 10 lakh.

Interest Subsidy under Mukhyamantri Laghu Udhyog Protsahan Yojana (MLUPY)

The Interest Subsidy will be granted to the beneficiaries on the loan provided by banks which will be payable as follows for five years:

S.No.Maximum Loan AmountInterest Subsidy
1. Up to 25 Lakh8%
2. 25 Lakh to 05 Crore6%
3. 05 Crore to 10 Crore5%


Under the scheme, the applications will have to be submitted online, whose process will be according to the guidelines prescribed for the implementation of the Scheme. Loan applications up to Rs. 10 lakh can be forwarded directly to the banks without any interview and the loans above Rs. 10 lakh will be forwarded to the bank after being scrutinized by the District Level Task Force Committee.


How to get Warehouse Subsidy under NABARD in Rajasthan

Any Person who has vacant or un utilized land may choose to setup warehosue in Rajasthan and get rental Income through renting of warehouse. Further Central Government provides subsidy on Project cost for setting up warehouse in Rajasthan. Subsidy are provided through NABARD ( National Bank for Agriculture and Rural Development). 

Following are details of Subsidy provided by NABARD: 

How Much Subsidy is Provided by NABARD for setting up warehouse

If the Applicants applying for Subsidy are : 

  • Women/Farmer/SC/ST Category  : 33.33% of Project Cost 
  • Others : 25% of Project Cost 

Minimum Owner Contribution of Project Cost Required 

The Applicant or Owner who is applying for subsidy for setting up warehouse must contribute minimum 20% of Project Cost of warehouse.

What is Project Cost 

Project Cost means Cost Involved in Construction of warehouse and also Includes :

  • Cost of Boundry Walls
  • Cost of Internal Roads 
  • Cost of Internal Drainage System
  • Cost of Weighing Kanta
  •  Cost of Fire Fighting Equipments Etc. 
  • Cost of Land (Maximum 10% )

How Much Loan is required from Banks

Applicants Getting benefits of Subsidy under this scheme, must require to obtain minimum 50% Loan from Banks of Project Cost. 

Documents Required for getting subsidy/Loan 

  • Detailed Project Report ( Fastlegal Provides Project Report Preparation Services , Please Call 9782280098, or email : support@fastlegal.in ) 
  • Income Tax Returns of Applicants 
  • Land Documents – Land Must be owned by Applicants and it must be out of Municipal Corporation Limits as Directed by NABARD
  • ID & Address Proof of Applicants

Fastlegal Provides Warehouse Project Loan and Subsidy Consultancy Services

Call: 9782280098

Email : support@fastlegal.in 

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