Starting a besan mill (gram flour manufacturing unit) under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme is a promising opportunity for Indian entrepreneurs, especially in states like Rajasthan, Madhya Pradesh, and Uttar Pradesh where gram is abundantly grown. This page provides a detailed PMFME besan mill project report tailored for NIC code 10617, with a project cost ranging from ₹5 lakh to ₹40 lakh. A bank-ready project report is crucial for availing the 35% capital subsidy (up to ₹10 lakh) and term loan under PMFME. It must include CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR), and 5-year financial projections covering profit & loss, balance sheet, and cash flow. The report also demonstrates technical feasibility, market demand, and compliance with FSSAI and GST requirements. Whether you are a first-generation entrepreneur or an existing food processor, this guide helps you prepare a professional proposal that meets bank and scheme guidelines, ensuring smooth subsidy disbursement and loan approval.
To avail PMFME subsidy for a besan mill, the applicant must be an individual, partnership firm, or a self-help group (SHG) engaged in food processing. The scheme is open to micro food processing enterprises with an annual turnover up to ₹5 crore. For besan mills, the project cost should be between ₹5 lakh and ₹40 lakh. The subsidy is 35% of the eligible project cost, capped at ₹10 lakh, provided as a capital grant. The applicant must contribute at least 10% of the project cost, and the remaining 55% can be financed through a term loan from a bank. Priority is given to women, SC/ST, and aspirational districts. The unit must be registered under Udyam Aadhaar and obtain FSSAI license. Existing units can also apply for expansion or modernization.
For a typical besan mill with a capacity of 1-2 tons per day, the project cost breakup is: Plant & machinery (chakki, sifter, packaging machine) ₹6-10 lakh; civil works ₹2-4 lakh; working capital ₹2-5 lakh; and other assets (furniture, electricals) ₹1-2 lakh. Total cost ranges from ₹11-21 lakh. Under PMFME, the financing structure is: 10% promoter contribution (₹1.1-2.1 lakh), 35% subsidy (₹3.85-7.35 lakh), and 55% term loan (₹6.05-11.55 lakh). The loan is repayable over 5-7 years at an interest rate of 9-12% per annum. Banks require collateral for loans above ₹10 lakh, but CGTMSE cover can be availed for loans up to ₹2 crore. The DSCR should be above 1.5 to ensure comfortable debt servicing.
For a PMFME besan mill project report, you need: 1) Identity proof (Aadhaar, PAN); 2) Address proof (electricity bill, rent agreement); 3) Udyam Aadhaar registration; 4) FSSAI license (application or existing); 5) GST registration (if turnover > ₹40 lakh); 6) Project report with CMA data, DSCR, and 5-year projections; 7) Quotations for machinery; 8) Land/building documents (ownership or lease); 9) Bank statement (last 6 months); 10) Caste/category certificate (if applicable). For existing units, add audited financials (3 years). Ensure all documents are self-attested. The project report must be prepared by a qualified CA or consultant to meet bank scrutiny.
Step 1: Register on the PMFME portal (pmfme.mofpi.gov.in) and fill the application form. Step 2: Prepare a detailed project report (DPR) covering technical, financial, and market aspects. Step 3: Submit the DPR to the District Nodal Officer (DNO) for approval. Step 4: After in-principle approval, approach a scheduled commercial bank with the DPR and required documents. Step 5: Bank appraises the project and sanctions the term loan. Step 6: Upon disbursement of loan and promoter contribution, the subsidy is released to the bank account (35% of project cost). Step 7: Start the unit and submit utilization certificate. The entire process takes 2-4 months. Ensure compliance with FSSAI and GST norms to avoid delays.
Every report is formatted to the exact standards required by Indian banks and government departments.
Create your account in 30 seconds — no credit card needed.
Enter applicant details, select the scheme, set your loan amount.
Our AI drafts the full report with financials, projections, and CMA data in under 60 seconds.
Export PDF on the free plan (branded). Upgrade for clean exports plus Word (.docx) + Excel (.xlsx). Submit to bank or DIC office.
PMFME format + besan mill economics combined correctly.
Subsidy/margin money for PMFME auto-computed.
Project cost ₹5–40 Lakh, NIC 10617.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — PMFME (35% capital subsidy) is commonly used for besan mill. The report is formatted to PMFME requirements with subsidy/margin money shown.
35% capital subsidy — computed automatically in the means-of-finance and subsidy sections.
Register free, pick the scheme & loan amount, and the AI drafts the full bank-ready report (CMA data, DSCR, 5-year projections) in under 60 seconds. First report free; clean exports ₹499.
The maximum subsidy is 35% of the eligible project cost, capped at ₹10 lakh. For a project cost of ₹40 lakh, the subsidy would be ₹10 lakh. The subsidy is provided as a capital grant and is released after the loan and promoter contribution are infused.
For loans up to ₹10 lakh, collateral is not required. For loans above ₹10 lakh, banks typically ask for collateral. However, you can avail CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) cover for loans up to ₹2 crore, which eliminates the need for collateral. The guarantee fee is borne by the borrower.
The repayment period is typically 5 to 7 years, including a moratorium of 6 to 12 months. The exact tenure depends on the bank's policy and the project's cash flow. Monthly installments are structured to ensure a DSCR of at least 1.5.
GST registration is mandatory if the annual turnover exceeds ₹40 lakh (₹20 lakh for special category states). For a new besan mill, it is advisable to register voluntarily to claim input tax credit on machinery and raw materials. FSSAI registration is compulsory for all food businesses.