Gram Samridhi Yojana for unorganised food processing

Gram Samridhi Yojana, a Centrally-sponsored scheme is being launched shortly to support the unorganised food processing sector concentrated in rural areas. It also aims to provide common facility centres and business incubators in rural areas

The scheme aims to offer subsidies to small farmer producers’ organisations and individual food processors, who makes very low capital investments and have poor access to credit, to set up food processing capacities, enhance and upgrade their existing capacities, enhancing their performances and strengthening the farm-to-market supply chain.

Niti Aayog has given the in-principle approval to the scheme and now the proposal has gone to the Expenditure Finance Committee for clearance

gram samridhi yojana

Gram Samridhi Yojana Funding

The Rs 3,000 crore scheme will be funded by the World Bank. World Bank will be giving Rs 1,500 crore while Rs 1,000 crore will be borne by the centre while state governments will put in Rs 500 crore

Target Beneficiaries

  • In the initial phase the scheme will be run in Uttar Pradesh, Andhra Pradesh, Maharashtra and Punjab
  • The scheme will run for a five-year period

Features of Gram Samridhi Yojana

  • To encourage entrepreneurs to set up food processing units, upgrade technology in existing unit, improve management of the units and give technical support
  • To Provide subsidies to small farmer producers’ organisations and individual food processors
  • Nearly 25 lakh food processing enterprises in the unorganised sector to be targeted as the scheme is scaled up
  • There is a provision to extend financial assistance to 70,000 micro enterprises @ 50% of the eligible project cost subject to a maximum of Rs 5 lakh for expansion and upgradation of their units
  • There is a provision for getting subsidy on bank interest by 3% to 5%

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