Lok Sabha Question No. 1242 (UNSTARRED), answered on 2023-07-27
Subject: Self Reliant India Fund
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Jayanta Kumar Roy, Bhola Singh, Vinod Kumar Sonkar, Rajveer (Raju Bhaiya) Singh, Sukanta Majumdar, Raja Amareshwara Naik, Sangeeta Kumari Singh Deo

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 1242 TO BE ANSWERED ON: 27.07.2023

## SELF RELIANT INDIA FUND

1242. DR. JAYANTA KUMAR ROY: SHRI BHOLA SINGH: SHRI VINOD KUMAR SONKAR: SHRI RAJVEER SINGH (RAJU BHAIYA): DR. SUKANTA MAJUMDAR: SHRI RAJA AMARESHWARA NAIK: SHRIMATI SANGEETA KUMARI SINGH DEO:

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

- (a) whether  the  Micro,  Small  and  Medium  Enterprises  (MSMEs)  is  managing  Rs.  50,000 crore Fund called Self Reliant India (SRI) fund and if so, the details thereof;

(b) whether  the  SRI  Fund  is  registered  with  the  Securities  and  Exchange  Board  of  India (SEBI) as a category - II Alternative Investment Fund (AIF) and if so, the details thereof;

(c) whether the fund operates through a mother-fund and daughter-fund structure for equity or quasi-equity investments in MSMEs and if so, the details thereof;

(d) whether the SRI Fund aims to enable credit access for MSMEs across the country;

- (e) if so, the details thereof along with the progress made so far through the SRI Fund since its inception in 2020; and
- (f) the details of other initiatives taken by the Government for MSME Sector?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

(a) to (c): As a  part  of  Aatmanirbhar  Bharat  package,  Rs  50,000  crore  Equity  infusion  for MSMEs  through  Fund  of  Funds  was  announced.  In  compliance  with  the  announcement,  Self Reliant  India (SRI) Fund has been set up to infuse Rs. 50,000 crore as equity funding in those MSMEs which have the potential and viability to grow and become large units. Under this Fund of Rs. 50,000 crore, there is  a provision of Rs.10,000 Crore from the Government of India and Rs.40,000 Crore through Private Equity / Venture Capital funds.

SRI fund operates through a mother-fund and daughter-fund structure for equity or quasiequity  investments.  NSIC  Venture  Capital  Fund  Limited  (NVCFL)  which  operates  as  Mother Fund in SRI Fund implementation, was registered as a Category-II Alternative Investment Fund (AIF) with SEBI, on 1 st September, 2021.

(d) & (e): SRI Fund aims to provide support for MSMEs across the country through equity infusion. Since inception in 2021, total equity infusion under the SRI Fund for MSME reached to Rs. 4,885 crore, including the Government of India contribution of Rs. 529.40 crore.

(f): The Government of India has taken a number of initiatives for the MSME sector, including the following:

-  Launch of the Champions 2.0 portal on 27.06.2023 for MSMEs;
-  MSME Champions Scheme, comprising
- (i) MSME-Sustainable(ZED),
- (ii) MSME- Competitive (Lean) and
- (iii) MSME- Innovative (for incubation, IPR, Design and Digital MSME) that provides financial assistance to MSME;
-  Budget  2023-24  announced    the  infusion  of  Rs.  9,000  crore  in  the  corpus  of  Credit Guarantee Fund Trust for Micro & Small Enterprises to enable an additional credit of Rs. 2.00 Lakh crore with reduced cost of credit;
-  'Raising and Accelerating MSME Performance (RAMP)' which aims at strengthening Institutions  and  governance  of  MSME  programme  at  the  Centre  and  States,  and increasing  MSME  sector's  access  to  credit  and  market,  increasing  firm  capabilities through technology upgradation, reducing incidence of delayed payments;
-  Amendment in Section 43B of the Income Tax Act, 1961 ('the Act') vide Finance Act 2023, etc.

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