'Rs 10,000 Cr Fund for MSMEs to be Used in Equity Participation'

Rs 10,000 crore venture capital fund, which was announced for the small businesses in the Union Budget, is likely to be used in equity participation in companies. Mr Kalraj Mishra, Union Minister for Ministry of MSME said this on the side-lines of a logistic industry summit in Mumbai.

Mr Kalraj Mishra also informed that to avoid small unit to go sick, the ministry has been urging small units to take advantage of schemes like the Credit Guarantee Trust for MSME (CGTMSE). Under the CGTMSE scheme, banks give collateral-free lending up to Rs 1 crore to the micro and small units.

When asked about the fund, Mishra replied that a committee appointed to look into it has presented its report recommending equity participation in companies as the way forward.

Meanwhile, he states that the Ministry of micro, small and medium enterprises (MSME) is done with the survey of industries and available skills in all districts.

Mishra said, “"It is big survey which we have carried out. We shall use the results to device government action for each district."

The survey was carried out across 676 districts, going into what kind of industry thrived in a particular area, he said.

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