VIJAYAWADA: In a move aimed at fostering the growth of the food processing industry in the State, the Andhra Pradesh Food Processing Society (APFPS) has signed a Memorandum of Understanding (MoU) with the State Bank of India (SBI).
This partnership marks a crucial step towards supporting the upgradation and establishment of a minimum of 7,500 micro food processing units in the State during the fiscal year 2023-24 under the Prime Minister Formalization of Micro Food Processing Enterprises (PMFME) scheme.
Under this pact, SBI will provide collateral-free loans of up to Rs 10 lakh to eligible beneficiaries of the PMFME scheme, subject to their creditworthiness, following the guidelines of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) under the Agri Infrastructure Fund (AIF). These loans will carry an interest rate of 9 per cent under AIF, and an additional 3 per cent interest subvention will be applied wherever applicable.
Further, a moratorium period of three months will be granted to facilitate the initial stages of these enterprises. The SBI also expressed its willingness to support the promotion of food processing units through collaboration with Farmer Producer Organizations. A separate plan of action is being considered for this purpose.
Speaking on the occasion, CEO of APFPS, Sridhar Reddy, said, “This partnership with a financial powerhouse like SBI will provide a significant boost to micro food processing enterprises in the State.” This partnership signified a collaborative effort to stimulate economic growth and job creation.