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Rane exhorts MSME Ministry officials to brace up for enhancing sector’s output

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Rane exhorts MSME Ministry officials to brace up for enhancing sector's output

NEW DELHI: Union Minister Narayan Rane on Tuesday exhorted MSME Ministry officials to brace up for enhancing the output of micro, small and medium enterprises sector, highlighting its potential to boost India’s exports and GDP growth. The minister said he would like to see a quantum jump in the performance of the MSME (micro, small and medium enterprises) sector, for which all segments of the ministry will have to work in tandem.

Addressing the signing of the Contribution Agreement by the officials of the NSIC, NVCFL, and SVL, Rane pointed towards the “possibility of quantum jump in India’s exports through MSME sector, which can lead to achieving higher GDP,” a release stated.

The MSME ministry further stated that the Self-Reliant India Fund (SRI Fund) shall address the equity funding challenges of the MSME sector and give them a thrust to break their barriers, encourage corporatisation and allow them to grow to their full inherent potential to become global champions.

“With the government intervention, the fund would be able to channelise a diverse variety of funds into underserved MSMEs and address the growing needs of viable and high growth MSMEs,” the statement said.

Finance Minister had announced the creation of a Fund of Funds for the MSMEs under the Atmanirbhar Bharat package to address the severe shortage being faced by them in securing growth capital.

Consequently, NSIC Venture Capital Fund Limited (NVCFL), a 100 per cent subsidiary of National Small Industries Corporation Limited – NSIC, was incorporated.

The fund was anchored by NVCFL with the target corpus of Rs 10,006 crore and the object of supporting Daughter Funds for onward provision to MSMEs as growth capital, through equity, quasi-equity, and debt, as permitted under the AIF Regulations.

The fund would, inter alia, be invested by the Ministry of MSME as the anchor investor and NSIC as the sponsor.

SBICAP Ventures Limited (SVL) has been appointed as the Investment Manager and Khaitan and Company have been appointed as the legal advisor to NVCFL.

The Private Placement Memorandum filed by NVCFL with the Securities and Exchange Board of India to register SRI Fund as a Category II Alternative Investment Fund was registered by SEBI on 1 September 2021.

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