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MoHUA launched convergence of PMFME & DAY-NULM to support Food Processing Units of Urban SHGs

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Centre launches convergence scheme to support food processing units of urban SHGsOn September 27, 2021, the Ministry of Housing & Urban Affairs (MoHUA) organised the launch event of the convergence between Prime Minister Formalisation of Micro-food processing Enterprises (PMFME) and Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) scheme.

  • It was jointly launched by Durga Shanker Mishra, Secretary, MoHUA; and Pushpa Subrahmanyam, Secretary, Ministry of Food Processing Industries (MoFPI) during a virtual event organized as a part of Azadi ka Amrit Mahotsav (AKAM).
  • Guidelines for this convergence have already been issued by MoHUA to States/ UTs.

Motive behind this convergence:

To support and groom urban SHG (Self Help Group) members involved in micro-entrepreneurship activities in the food processing sector by making them financially empowered.

Launch of IT module developed on DAY-NULM MIS

The online Seed Capital Module developed on DAY-NULM MIS (management information system) was also launched to help in effective implementation of this convergence. It was launched by MoFPI in association with MoHUA under the PMFME Scheme. It can be accessed at

  • This portal will assist the relevant SHGs to avail seed capital assistance of Rs.40,000 per SHG member under the PMFME Scheme. This fund can be used for purchasing small tools and working capital.

About PMFME Scheme:

It is launched by MoFPI under Aatma Nirbhar Bharat Abhiyan with an outlay of Rs 10,000 crore for 5 years from 2020-21 to 2024-25. It provides financial, technical, and business support for upgradation of existing micro FMEs and to promote formalization & competitiveness of this sector. The following are the key benefits under this scheme:

  • Seed capital of 40,000 per SHG member
  • Support to FME through credit-linked capital subsidy of 35% of the eligible project cost with a maximum ceiling of 10 lakh per unit.
  • It also provides support for marketing & branding to micro units along with training and capacity building.

 About DAY-NULM scheme:

Launched in 2013 by MoHUA, it replaced the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY). The scheme aimed to reduce poverty and vulnerability of the urban poor households by mobilizing them into SHGs thus supporting their livelihood and employment opportunities.

  • DAY-NULM has mobilised over 61 lakhs urban poor women into SHGs and their federations. Out of these, approximately 32,000 SHGs have been identified by States/ UTs to be involved in Food Processing activities.
  • It should be noted that NULM has signed pacts with Amazon and Flipkart for sale of SonChiraiya products made by SHGs. This will help SHGs to showcase their products on e-Commerce Portals resulting in business opportunities and income.

About AKAM:

Azadi ka Amrit Mahotsav (AKAM) is an initiative of the Government of India (GoI) to celebrate and commemorate 75 years of Independence.

  • Azadi ka Amrit Mahotsav commences on 12th March, 2021 which starts a 75 week countdown to our 75th anniversary of Independence(2022) and will end post a year on 15th August, 2023.

Recent Related News:

i.Under the One District One Product (ODOP) component, MoFPI approved ODOP for 707 districts of 35 States and UTs, which includes 137 unique products as per the recommendations received by States/UTs.

ii.MoHUA launched the Transport 4 All Challenge in collaboration with Institute for Transportation and Development Policy (ITDP) to bring together cities, citizen groups, and start-ups to develop solutions that will improve public transport.

About Ministry of Housing & Urban Affairs (MoHUA):

Union Minister– Hardeep Singh Puri (Constituency- Uttar Pradesh)
Minister of State (MoS)– Kaushal Kishore (Constituency- Mohanlalganj, Uttar Pradesh)