The fisheries sector is one of the key sources of employment and livelihood in India. India is the third largest fish producer in the world and holds second place in aquaculture globally. As the economy suffered a setback due to the pandemic, the government launched various initiatives to promote growth and self-employment in different sectors through financial assistance.
If you are an entrepreneur looking for a lucrative opportunity to start a business in the fisheries sector or need funding or incentives, there are plenty of incentives and financing options from the private sector and the government.
Let us look at one such scheme launched by the government.
The Pradhan Mantri Matsya Sampada Yojana (PMMSY) is one such scheme launched by the central government in 2020 to kickstart development and growth in the fisheries sector. The scheme earmarked an investment of INR 20,000 crores to be allocated in five years between 2020 -2025. Out of this budget, INR 11,000 crore was marked for inland, marine fishery and aquaculture, and the remaining outlay was earmarked for the development of infrastructure for logistics, storage and harbours.
The main goals outlined for the Pradhan Mantri Matsya Sampada Yojana are:
- Doubling fish production
- Increasing exports to 100k crores from 46k crores
- Mitigating post-harvest losses from one-fourth to one-tenth.
- Creating 15 lakh direct employment opportunities
- Substantially increasing incomes in the sector
Components of PM Matsya Sampada Yojana:
The funds allocated under the Pradhan Mantri Matsya Sampada Yojana scheme are disbursed to beneficiaries under two schemes:
- Central Sector (CS) Scheme
- Centrally Sponsored Scheme (CSS)
Central Sector Scheme:
In this scheme, the project is sponsored completely by the Central government; there is no contribution by state governments.
When a project involves beneficiary-oriented (i.e. direct individuals or groups) activities, only 40% of the project value is funded by the government. This funding limit is 60% for Women & applicants from the SC/ST communities. The remaining project cost is to be self-funded by the beneficiary.
Centrally Sponsored Scheme:
In this scheme, the government funding is split between the centre and state governments.
For non-beneficiary-oriented activities, the project funding is done jointly by central and state governments without any contribution required by the applicant.
For beneficiary-oriented (i.e. individual and group-based) activities, the funding is split between government funding and the individual’s own contribution. The Govt provides funding of up to 40% for applicants from the general category and up to 60% for women and SC/ST category applicants.
The following general categories of projects are funded under the scheme:
1. Projects to increase production and efficiency
2. Infrastructure development for post-harvest activities
3. Fisheries management and regulations
Who are the beneficiaries under Prime Minister Matsya Sampada Yojana?
The beneficiaries under the scheme include fishermen, workers and vendors directly engaged in the fisheries sector. The scheme also benefits various government bodies and non-government federations, cooperatives in the fisheries sector, individual businesses, companies and entrepreneurs.
Who is eligible to apply for funding under the PM Matsya Sampada Yojana Scheme?
Members of the fishing community who are directly engaged in fishing and indirect beneficiaries of the fishing sector are eligible to apply under the scheme. The applicant must be above 18 years of age.
What is the ‘Livelihood and nutritional support’ benefit?
The government provides Rs. 3000 annually to every enrolled beneficiary under the livelihood and nutritional support scheme for socio-economically backward, active, traditional fishermen during the lean period for conservation of fisheries resources. Each beneficiary is required to deposit Rs. 1500 annually from their side. The beneficiary must be above 18 years of age, from the BPL category, engaged in full-time fishing activity and a member of the local fishing federation or society.
How to apply for the Pradhan Mantri Matsya Sampada Yojana?
One can apply online to the Pradhan Mantri Matsya Sampada Yojana or visit the Department of Fisheries office. The application process is very simple and easy to follow. A DPR or Detailed Project Report format is available on the website under the ‘Templates’ header.
- Visit the official website of NFDB (National Fisheries Development Board)
- Go to the ‘Quick Links’ section and select the ‘Templates’ tab
- Click on ‘Template for preparation of DPR for Fisheries Project’
- Select the template and fill in all the information accurately
An applicant needs to prepare a report of the project covering the following details:
- Project Objectives
- Expected benefits, e.g. increase in production increase, efficiency, employment growth with figures, etc.
- Detailed cost projection
- Cost and benefit analysis of the project
- Project timelines and estimated milestones of completion
- Supporting documents, e.g. land record, environmental impact/clearance, etc.
- Copies of the report must be submitted to the NFDB and Fisheries department.
For details of Pradhan Mantri Matsya Sampada Yojana registration, one can contact the District Fisheries Officer or the NFDB helpline. The status of an application under the PM Matsya Sampada Yojana is communicated through the Fisheries office – applicants need to contact them to know the approval status.
Apart from traditional fisheries businesses, the PM Matsya Sampada Yojana aims to promote new initiatives and technologies in the fisheries sector, such as:
- Entrepreneurs, innovations, emerging technologies and startups working in fishing and aquaculture
- New technologies like blockchain, global certifications and standards, modern fishery farms
- Developing aqua parks and new age aquariums
- Development of modern fishing villages in coastal zones to promote better livelihood, health and employment
- Modern breeding centres and genetic improvement centres for fish species of commercial importance
- Proposal to cover fishing vessels under an insurance umbrella, protection from commercial losses
To summarise, the Pradhan Mantri Matsya Sampada Yojana is an excellent scheme launched by the government to uplift the fisheries sector and generate employment. Eligible beneficiaries can easily take advantage of the scheme and enhance their businesses. To know more about business finance, connect with Tata Capital. We offer attractive interest rates, flexible loan terms, an easy application process and quick disbursal. Use the Tata Capital business loan EMI Calculator and check your monthly EMI.