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Indian Economy

States’ Share in PMMSY and FME

  • 21 May 2020
  • 5 min read

Why in News

Recently, the Cabinet has approved the implementation of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) and Formalisation of Micro Food Processing Enterprises (FME).

Pradhan Mantri Matsya Sampada Yojana

  • Aim: The Pradhan Mantri Matsya Sampada Yojana (PMMSY) was first mentioned during the 2019-20 Budget.
    • It aims to bring a blue revolution through sustainable and responsible development of the fisheries sector in India.
    • It also intends to augment fish production and productivity at an annual growth rate of 9% to achieve a target of 22 million metric tons by 2024-25.
    • It strives to create direct employment to 15 lakh fishers, fish farmers, etc. and about thrice this number as indirect employment opportunities.
    • It also aims to double the incomes of fishers, fish farmers and fish workers by 2024.
  • Time Period: The Scheme will be implemented during a period of 5 years from the Financial Year (FY) 2020-21 to FY 2024-25.
  • Funding: It has a total estimated investment of Rs 20,050 crore. The investment share is segregated as:
    • Central Share: Rs 9,407 crores.
    • States’ Share: Rs 4,880 crores.
    • Beneficiaries’ Share: Rs 5,763 crores.
  • Implementation:The PMMSY will be implemented as an umbrella scheme with two separate Components namely,
    • Central Sector Scheme (CS):
      • Non-beneficiary Oriented: The entire project cost will be borne by the Central government (i.e. 100% central funding).
      • Beneficiary Oriented: The individual/group activities undertaken by the entities of central government including the National Fisheries Development Board (NFDB), the central assistance will be up to 40% of the project cost for General category and 60% for SC/ST/Women category.
    • Centrally Sponsored Scheme (CSS):
      • Non-beneficiary Orientated: All the sub-components/activities will be implemented by the States/UTs, the entire project/unit cost will be shared between Centre and State.
      • Beneficiary Oriented: The individual/group activities under this component to be implemented by the States/UTs. The financial assistance of both Centre and State/UTs governments together will be limited to 40% of the project cost for General category and 60% of the project cost for SC/ST/Women.
    • The Centre and State financial assistance for CS and CSS as mentioned above will be shared as given below:
      • North Eastern & Himalayan States: 90% Central share and 10% State share.
      • Other States: 60% Central share and 40% State share.
      • Union Territories (with legislature and without legislature): 100% Central share.

Formalisation of Micro Food Processing Enterprises

  • Aim:
    • The Scheme for Formalisation of Micro Food Processing Enterprises (FME) intends to increase access to finance and revenue targets for the micro food processing enterprises. It also targets 2,00,000 micro-enterprises to be assisted with credit linked subsidies.
    • It envisages increased access to credit by existing micro food processing entrepreneurs, women entrepreneurs and entrepreneurs in the Aspirational Districts.
    • The project is likely to generate 9 lakh skilled and semi-skilled jobs.
    • It will also help to integrate micro food processing enterprises with the organized markets.
  • Features:
    • It is a Centrally Sponsored Scheme (CSS) on All India basis with an outlay of Rs. 10,000 crore.
    • The expenditure will be shared by the Centre and the States in a ratio of 60:40.
    • Scheme will be implemented over a 5 year period from 2020-21 to 2024-25.
    • The Scheme will majorly focus on perishables.
    • The Scheme would be monitored at Centre by an Inter-Ministerial Empowered Committee (IMEC) under the Chairmanship of Food Processing Industries Minister.
    • A State/UT Level Committee (SLC) chaired by the Chief Secretary will monitor and sanction/recommend proposals for expansion of micro units and setting up of new units by the Self Help Groups (SHGs)/Farmer Producer Organizations (FPOs)s/ Cooperatives.
    • The Scheme also envisages the third party evaluation and mid-term review mechanism in the programme.

Source: IE

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