States’ Share in PMMSY and FME | 21 May 2020

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).

• Both the schemes were announced in the third tranche of the Rs. 20 lakh crore economic package under Atmanirbhar Bharat Abhiyan.
• It has been observed that about Rs. 30,000 crore worth of above schemes will rely on 40% share from states.

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