Page 75 - IMDR JOURNAL 2023-24

IMDR’s Journal of Management Development & Research 2023-24

entertainers and any remaining units that can advance the improvement of solid and suitable creation
associations.

In the Association Financial plan, the Public authority of India declared two significant drives to help FPOs

Value Blessing Asset Plan to help FPOs by giving a sum equivalent to the capital commitment made by FPO
individuals and credit. A guarantee fund scheme which provides credit guarantee protection to approved credit

institutions, offers unsecured loans to FPOs.

The Government of India in 2018-19, started “Operation Greens” for onion, potato and tomato crops,
attracting Rs. 500 Cr. to relieve vegetable cost unpredictability to serve farmers and buyers by advancing FPOs

and laying out agro logistics, handling offices and expert administration frameworks. Further, 100% duty
exclusion was given to FPOs with a yearly turnover of up to Rs. 100 Cr. for a very long time. In 2019-2020,

India reported a Focal Area Plan to advance and support 10,000 FPOs the nation over.

5.8 Supports from Government:

• Equity Support Fund Scheme: SFAC gives value backing to qualified FPC organizations up to Rs 10.00 lakh
per FPC gave the FPC has an enrollment of something like 50 investors.

• Credit Guarantee Fund Scheme: The primary target of the Credit Assurance Asset Plan is to give credit ensure
cover by giving unstable credit to FPC organizations, limiting their credit risk for advances not surpassing

100.lakh.

• NABARD: Producer Organizations Development Fund (PODF) Share/share capital up to Rs.25, 00,000/-For
FPO, a maximum amount of Rs. 25,000 per participant, credit support for commercial, support for capability

structure programs.

• Operation Green: Operation Green program was launched by Ministry of Food Processing Industries,
Government of India in 2018-19. A subsidy on subsidy amounting to 70 percent of the eligible project cost of

the rural production enterprise.

5.9 FPO-Salient Features:
1. FPO is a fusion of a combined stock enterprise and a cooperative. The accepted procedures of

enterprises and the accepted procedures of restricted organizations have been refereed to. It has the
advantages of mutually commercial and cooperative association.

2. At least ten people participated in any movement connected with essential creation or at least two

makers or organizations in a relationship of at least ten people or creation offices. The Organization is
restricted and the liabilities of the individuals are restricted to the sum in the event that the offers are

remarkable.

3. The capital part is the share capital invested by the members as share capital.
4. The FPO provides a legal and adjusting structure that creates the opportunity to participate with other

industries on economic terms that may shape the FPO.