Are you planning to start a makhana processing unit in Bihar, the heart of India's fox nut production? The PMFME (Pradhan Mantri Formalisation of Micro Food Processing Enterprises) scheme offers a capital subsidy of up to 35% (max ₹10 lakh) for new units under NIC 10309. A bank-ready project report is your gateway to sanctioning a term loan of ₹5–40 lakh. This report must include CMA (Credit Monitoring Arrangement) data, Debt Service Coverage Ratio (DSCR) above 1.5, and 5-year financial projections covering profit, cash flow, and balance sheet. It also details raw material sourcing (makhana seeds from local farmers), processing machinery (roasting, puffing, grading), and working capital needs. With this report, you can approach banks like SBI, PNB, or Canara Bank under the PMFME scheme, ensuring faster approval and subsidy disbursement. Let's break down the essential components.
Any individual, partnership, LLP, or private limited company engaged in makhana processing (cleaning, roasting, puffing, grading, packaging) can apply. The unit must be located in a designated food processing cluster or rural area. Aadhaar, PAN, GST registration (if turnover > ₹40 lakh), and FSSAI license are mandatory. The applicant should not have availed similar subsidy under other central schemes. Existing units can also apply for upgradation. The project cost must be between ₹5 lakh and ₹40 lakh, with the promoter contributing at least 10% margin money (5% for SC/ST/women/disabled). The scheme is open for 5 years (2020-21 to 2024-25), but apply early as funds are limited.
A typical makhana processing unit of 50 kg/day capacity requires ₹10–15 lakh investment. Machinery includes: makhana roasting machine (₹1.5–2.5 lakh), puffing machine (₹2–3 lakh), grading/sorting machine (₹1–1.5 lakh), packaging machine (₹1–2 lakh), and other equipment (weighing, sealing, storage). Civil works (shed, flooring) may cost ₹2–4 lakh. Working capital for 2 months: ₹2–4 lakh. Total project cost: ₹12–15 lakh. Under PMFME, subsidy is 35% of eligible project cost (max ₹10 lakh) for new units, and 50% (max ₹5 lakh) for upgradation. Bank loan covers 55–60% (e.g., ₹7–9 lakh). Promoter's margin: 10% (₹1.2–1.5 lakh). Loan tenure: 5–7 years, with moratorium of 6–12 months. Interest rate: MCLR + 1–2% (approx 9–11% p.a.).
1. KYC: Aadhaar, PAN, voter ID, passport-size photos. 2. Business proof: GST registration, FSSAI license, Udyam registration. 3. Land documents: Lease deed or ownership proof, NOC from local authority. 4. Project report: Detailed with CMA data, DSCR calculation, 5-year projections. 5. Quotations: At least 3 from machinery suppliers. 6. Bank statements: Last 6 months of applicant. 7. Income tax returns: Last 2–3 years (if applicable). 8. Subsidy application: PMFME portal registration (pmfme.mofpi.gov.in), DPR upload, and bank loan application. Ensure all documents are self-attested and notarized where required. The bank will verify the project report and may conduct a field visit.
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 + makhana processing economics combined correctly.
Subsidy/margin money for PMFME auto-computed.
Project cost ₹5–40 Lakh, NIC 10309.
CMA, DSCR ≥ 1.50, 5-year projections.
Editable; Word + Excel exports; first report free.
Yes — PMFME (35% capital subsidy) is commonly used for makhana processing. 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.
For new units, 35% of eligible project cost, capped at ₹10 lakh. For upgradation of existing units, 50% of eligible project cost, capped at ₹5 lakh. The subsidy is released in two installments: 50% after loan sanction and 50% after unit commissioning.
No. A bank-ready project report is mandatory for loan sanction under PMFME. It must include CMA data, DSCR (minimum 1.5), and 5-year financial projections. Without it, banks will not process your application. You can hire a CA or consultant to prepare the report.
GST registration is mandatory if your annual turnover exceeds ₹40 lakh (₹20 lakh for special category states). However, even for lower turnover, it is advisable to register to claim input tax credit on machinery and raw materials. Also, FSSAI registration is compulsory for all food businesses.
After loan sanction, the first 50% subsidy is released within 30–45 days. The second 50% is released after the unit is commissioned and a physical inspection is done. Total time from application to full disbursement: 3–6 months, depending on bank processing and documentation.