Economic Development

In 2 Schemes worth Rs 30,000 crore, 40% of the Funding from States

In 2 Schemes worth Rs 30,000 crore, 40% of the Funding from States News 2 schemes – Pradhan Mantri Matysa Sampada Yojana (PMSY) and Scheme for Formalisation of Micro Food Processing Enterprise (FME)- which have been launched under the campaign of “Atma Nirbhar Bharat”, were announced on 20th May 2020. Pradhan Mantri Matysa Sampada Yojana

Though currently it has been announced in the Third Tranche of the Rs.20.97 Lakh Crore stimulus package offered in “Atma Nirbhar Campaign”, the scheme was formally announced in the budget session of 2019-20.
It focuses on bringing “Blue Revolution” in the country through the sustainable use of fisheries resources of India. It aims at “doubling fishermen income by 2024”.
The total estimated investments in the scheme have been pegged at Rs. 20,050 crores. Out of this, Rs. 9,407 crore is the centre’s share, Rs. 4,880 crores will come out of States’ pockets and Rs.5,763 crores will be the share from the beneficiaries.
The Scheme has two components – 1) Central Sector Scheme and 2) Centrally Sponsored Scheme. Within the framework of CS – contribution of the centre will be 60%, while states’ will be 40% and for Himalayan and North Eastern States, Centre-State share will be in the ratio of 90:10 respectively. For Union Territories, the centre will fund this scheme on a 100% basis. Under the CSS framework, the Centre will bear 100% funding under this scheme.
The beneficiaries – Individual or Group, including the National Fisheries Development Board- will receive assistance from the Centre, wherein 40% of the unit /project cost will be provided for General Category and 60% will be provided for Women/SC/ST.
The scheme is to be implemented for a period of 5 years from FY2020-21 and FY2024-25. The scheme will be implemented through the Department of Fisheries and try to build a stable supply chain, by making a structural change in infrastructure and modernization, post-harvest management and quality control.

Blue Revolution in India

Globally, “Blue Revolution” had begun for the first time in China. It is a campaign which seeks to tap the potential of the Fisheries sector in an economy and transforming it into a modern profitable sector.
India is the 2nd largest producer of Fishes in the world and fisheries contribution in the total agricultural export from India has considerably increased in the last 5 years or so, making it India’s single largest agricultural export. Indian boosts of an 8,118 km coastline and is well endowed with ponds, rivers and lakes which is seen as a means to increase the potential of the fisheries sector of India.
India launched its first “Blue Revolution” strategy in the 7th Five-year plan (1985-1990) – leading to the establishment of Fish Farmers Development Agency. During the 8th Five year plan, Intensive Marine Fisheries’ Programme was launched. Fishing harbours were established around this time at Vishakhapatnam, Port Blair and Kochi.
Blue Revolution Version 2.0 or Neel Kranti – was launched by the present Government of India, to help develop and manage the fisheries sector in India. It also intends to expand the sector into the hinterland of the country. Aiming to achieve the targets of modernizing the fisheries sector, doubling of the income of men engaged in it and making fisheries an additional source of income for farmers (especially those practising it in the hinterland) are its main goals.
Presently it is being implemented by the National Fisheries Development Board, which was established in 2006. The Board functions under the Ministry of Fisheries, Animal Husbandry and Dairying.

Scheme for Formalisation of Micro Food Processing Enterprises (FME)

Its estimated outlay is pegged at Rs. 10,000 crores; its funding is shared by the Centre and State in a ratio of 60:40.
It is a new scheme which will be implemented over a 5 year period, from 2020-21 to 2024-25.
The scheme is to be monitored by the Centre through an Inter-Ministerial Empowered Group whose chairperson will be the Minister of Food Processing Industries. A state-level committee will be formed to review and sanction setting up micro-units(by SHG, FPO and Cooperatives) and their expansion
The scheme will focus on “Cluster” based approach and engage with Perishable products. 2,00,000 micro-enterprises are to be assisted with credit linked subsidy. Micro enterprises will get credit-linked subsidy at 35 per cent of the eligible project cost with a ceiling of Rs. 10 lakh.
The scheme will be inviting participation through a National Portal.
SHG will be provided with seed capital to set up such units; Rs. 4 lakh will be given for purchasing tools and necessary implements.
With 25 lakh unregistered food processing enterprises which constitute 98% of the sector and are unorganized and informal and nearly 66 % of these units are located in rural areas and about 80% of them are family-based enterprises- suffer due to a number of challenges including the inability to access credit, high cost of institutional credit, lack of access to modern technology, inability to integrate with the food supply chain and compliance with the health &safety standards. This scheme will focus on the eradication of these issues at the nearest possible.