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The Government of India has launched Self Reliant India (SRI) Fund, a fund of funds which aims to extend growth funding to MSMEs.
A series of information as an official update to Lok Sabha was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane.
The highlights of SRI Fund are as under:-
- To provide funding support to Daughter Funds for onward provision as growth capital through equity, quasi-equity and debt (as permitted under relevant SEBI guidelines).
- To support faster growth of MSMEs and thereby ignite the economy and create employment opportunities.
- To support MSMEs to graduate beyond the MSME bracket and become National/International Champions.
- To support MSMEs which help making India self-reliant by producing relevant technologies, goods and services.
- Daughter Funds which are interested in investing in MSMEs shall be empanelled.
- 20% of the funds invested in MSMEs shall be provided by SRI Fund.
- MSMEs as per the definition given in the MSMED Act shall be eligible provided, after assessment, they are found viable, have a positive growth trajectory, and have a defined business plan for growth. Previous 3 years CAGR will be considered.
- Non Profit institutions, NBFCs, financial inclusion sector, micro credit sector and other financial intermediaries shall not be eligible for consideration.
Assuming an average investment of Rs. 10.00 Crore per MSMEs, approximately 5000 MSME are likely to be benefited.
The financial support under this scheme intends to increase the financial capacity of viable MSMEs for growth to expand their business and become National/International Champions.
The scheme is being implemented by a special purpose vehicle named “NSIC Venture Capital Fund Limited”. As informed by NSIC Venture Capital Fund Limited, a Commitment of Rs.1,080 crore has been approved so far.
EXPANSION OF MSME SECTOR
Promotion and development of enterprises is a State subject. The Central Government supplements the efforts of the State/UT Governments through various schemes, programmes and policy initiatives for promotion, development and enhancing the competitiveness of MSMEs and to increase employment opportunities in the country.
The Ministry of MSME implements various schemes and programmes for growth and development of MSME Sector in the country. These schemes and programmes inter-alia include Prime Minister’s Employment Generation programme (PMEGP), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises Cluster Development Programme (MSE-CDP) etc. Benefits under these schemes are available to all eligible MSMEs throughout the country. Ministry of MSME has also been implementing a special scheme viz. ‘Promotion of MSMEs in North Eastern Region and Sikkim’ which focuses on improving the condition of MSME Sector in North Eastern States including Assam. The Scheme-wise Budget allocation of these schemes is given below:-
| Budget Allocation (Rs. in crore) | ||||
| S.No. | Name of the Scheme | 2019-20 | 2020-21 |
2021-22 (As on 31.12.2021) |
| 1 | Prime Minister's Employment Generation Programme
(PMEGP) |
2,327.10 | 2,500.00 | 2,000.00 |
| 2 | Scheme of Fund for Regeneration of Traditional Industries (SFURTI) | 125.00 | 464.85 | 170.00 |
| 3 | A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE) | 50.00 | 30.00 | 15.00 |
| 4 | Credit Guarantee Scheme | 597.00 | 100.00 | 0.04 |
| 5 | Micro and Small Enterprises Cluster Development Programme (MSE-CDP) | 227.90 | 390.69 | 156.60 |
EXPORT OF COIR PRODUCTS
India’s share in the international coir market for the finished products is estimated to be about 80 to 85%.
The export of coir and coir products has shown an increase to the tune of 37% in terms of value and 17.6% in terms of quantity during the year 2020-21, compared to 2019-20.
Government of India has provided the following incentives for the export of Coir and Coir products :
- Duty Drawback at the rate from 0.15% to 1.5% on Free on Board (FoB) value of export.
(ii) Remission of Duties and Taxes on Export Products (RoDTEP) at the rate from 0.5% to 2.1% on FoB value of export.
Under the International Co-operation Scheme of the Ministry of MSME, the Government is proposing to introduce a scheme aiming ‘Capacity Building’ of First Time MSE Exporters through providing assistance by reimbursing RCMC charges, reimbursement of insurance charges, Testing and Quality Certification Charges. The Government is also proposing to set up a National Resource Database System aiming dissemination of international Market Intelligence to the MSME units. Coir Board is also extending quality inspection support to the desirous MSMEs.
This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Lok Sabha.