Seed capital @ Rs. 40,000/- per SHG member would be provided to those engaged in food processing for working capital and purchase of small tools. Priority would be given for SHGs involved in ODOP produce in giving seed capital. Seed capital as a grant would be provided to the SHG federation which, in turn, would be extended to members as a loan through the SHGs. The SHG federation would provide this amount as a loan to the members of SHGs to be repaid to the SHG.
Eligibility Criteria for Seed Capital for SHGs:
- Only SHG members that are presently engaged in food processing would be eligible.
- The SHG member has to commit to utilize this amount for working capital and purchase of small tools and give a commitment in this regard to the SHG and SHG federation.
- Before providing the seed capital, SHG Federation should collect the following basic details for each of the members:
- Details of the product being processed;
- Other activities undertaken;
- Annual turnover;
- Source of raw materials and marketing of produce