Lok Sabha Question No. 281 (UNSTARRED), answered on 2022-02-03
Subject: Financial Assistance to MSMEs During Covid
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Rajendra Dhedya  Gavit, Shrikant Eknath Shinde, Unmesh Bhaiyyasaheb Patil, Aparupa  Poddar, Heena Vijaykumar Gavit, Krishna Pal Singh Yadav, Sujay Radhakrishna Vikhepatil

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 281 TO BE ANSWERED ON 03.02.2022

## FINANCIAL ASSISTANCE TO MSMEs DURING COVID

## 281.             SHRI RAJENDRA DHEDYA GAVIT:

DR. SHRIKANT EKNATH SHINDE:

SHRI UNMESH BHAIYYASAHEB PATIL:

SHRIMATI APARUPA PODDAR:

DR. HEENA GAVIT:

DR. KRISHNA PAL SINGH YADAV:

DR. SUJAY RADHAKRISHNA VIKHE PATIL:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether it  is  a  fact  that  the  Government  has  taken  a  decision  to  infuse  50,000  crore  into Micro, Small and Medium Enterprises (MSMEs) in these COVID-19 times as equity through fund of funds;
- (b) if so, highlights thereof and number of MSMEs likely to be benefited;
- (c) the extent to which this has helped in expansion and increase in capacity of MSMEs; and
- (d) the amount of funds infused under the above fund so far and number of MSMEs benefited out of it, State-wise?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI NARAYAN RANE)

- (a): The    Government  of  India  has  launched  Self  Reliant  India  (SRI)  Fund,  a  fund  of  funds which aims to extend growth funding to MSMEs.
- (b): 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.

- (c): 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.
- (d): 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.

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