The government will soon approve a large fund (fund of funds) of Rs 10,000 crore for micro, small and medium enterprises (MSME).
New Delhi. The government will soon approve a large fund (fund of funds) of Rs 10,000 crore for micro, small and medium enterprises (MSME). Union MSME Minister Nitin Gadkari said on Wednesday that the fund will be for buying up to 15 percent equity stake in MSMEs with high credit rating, which intends to get listed on the stock exchanges and raise funds.
He said that a separate scheme is being chalked out under which MSMEs will be given a credit rating based on their annual turnover, exports and Goods and Services Tax (GST) payments. Gadkari said that the National Small Industries Corporation (NSIC or any other government body will control this fund.
He said that the government wants the funds of this fund to be used by AAA i.e. MSMEs with Triple A rating. The MSME Minister said, “The Finance Ministry has approved the proposal of Rs 10,000 crore fund. It will soon be placed with the Union Cabinet for approval.
He said that the government will contribute 15 percent to the funds raised from the capital market by MSMEs rated AAA. He said that this fund is expected to get approval from the Cabinet soon. After that it will be implemented immediately.
In a meeting with the PHD Chamber of Commerce and Industry through video conferencing, Gadkari asked the industry to also look at the financial situation of the government and banks amidst the economic crisis caused by Kovid-19 by placing any demand.
Gadkari said, “The government is also facing financial crisis. Many state governments do not have enough money to pay their employees next month’s salary. The situation is challenging for banks too.
