Fund of Funds for MSMEs: Govt’s Rs 50,000 crore equity infusion to benefit this many small businesses
Fund of Funds for MSMEs: Govt’s Rs 50,000 crore equity infusion to benefit this many small businesses
Credit and Finance for MSMEs: The Fund of Funds will help MSMEs with “growth potential and viability” even as they “face severe shortage of equity,” Nirmala Sitharaman said announcing the Covid-relief package for MSMEs.
Credit and Finance for MSMEs: The Fund of Funds announced by the Finance Minister Nirmala Sitharaman on Wednesday to infuse Rs 50,000 equity in MSMEs will cater to more than 25 lakh MSMEs, according to MSME Minister Nitin Gadkari. Set-up with a corpus of Rs 10,000 crore, the Fund of Funds “will benefit over 25 lakh MSMEs under stress,” a statement by the MSME Ministry cited Gadkari as saying in a video message. The fund will help MSMEs with “growth potential and viability” even as they “face severe shortage of equity,” Nirmala Sitharaman had said. Moreover, the fund will be operated through a Mother Fund and a few daughter funds to enable MSMEs expand in size and capacity and would also encourage them to list on the main board of the stock exchanges.
Gadkari also hoped that with the easing of the global tendering norm MSMEs will be able to get orders from defence and police departments for uniforms etc. Sitharaman in the relief measures for MSMEs had disallowed global tenders up to Rs 200 crore for MSMEs to compete better against foreign companies for government procurement tenders.
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