Self-Reliant India Fund provided Rs 1,600 cr support to 88 MSMEs: Official
SRI fund is implemented by a special purpose vehicle, NSIC Venture Capital Fund Limited, which is a 100 per cent subsidiary of National Small Industries Corporation, an mini-Ratna under the ministry.
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The government is the sole anchor investor in SRI fund with the initial budgetary support of Rs 10,000 crore as the mother fund. (Representational/File)The Self-Reliant India Fund (or SRI Fund) launched by Government of India to make equity investments in small entities, have so far provided Rs 1,600 crore of funding to 88 MSMEs in the country, said BB Swain, Secretary, Union Ministry of Micro Small and Medium Enterprises (MSMEs), while addressing an MSME Conclave at Gujarat University, Saturday.
“Last year we launched a Self-Reliant India Fund. This is a fund where Government of India aims to invest Rs 50,000 crore. In the very first funding that we did, where 25 empanelled Private Equity firms funded about 88 MSMEs,” said Swain about the fund that was announced by Union Finance Minister Nirmala Sitharaman in May 2020.
SRI fund is implemented by a special purpose vehicle, NSIC Venture Capital Fund Limited, which is a 100 per cent subsidiary of National Small Industries Corporation, an mini-Ratna under the ministry.
“MSMEs are not known to be equity seekers. But this scheme started promoting it. Our target was that if we (government) contributed one rupee, the private sector will give four rupees for equity participation in MSMEs. The first set of 88 MSMEs have been funded and we invested roughly Rs 200 crore and private sector invested Rs 1400 crore. This shows that there is enough money available for those who are talented and MSMEs that are doing well,” he said adding that private sector was contributing seven rupee for every rupee invested by the government.
The government is the sole anchor investor in SRI fund with the initial budgetary support of Rs 10,000 crore as the mother fund, while the rest is expected to come from daughter funds that will raise capital from outside sources such as banks, financial institutions, private equities and venture capital investors. Under the Emergency Credit Line Guarantee Scheme (ECLGS) — launched in May 2020 when Covid peaked — Rs 3.51 lakh crore guarantees were given to 1.1 crore beneficiaries, the official added.
“This contributed greatly in survival of MSMEs during the pandemic,” he said at the event.
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