New Delhi -°C
Today in New Delhi, India

Jul 16, 2020-Thursday
-°C

Humidity
-

Wind
-

Select Country
Select city
ADVERTISEMENT
Home / Business News / Govt announces Rs 50,000 cr Fund of Funds to boost MSMEs

Govt announces Rs 50,000 cr Fund of Funds to boost MSMEs

The Fund of Funds will be set up with a corpus of Rs 10,000 crore and will provide equity funding for MSMEs with growth potential and viability.

business Updated: May 13, 2020 17:59 IST
hindustantimes.com| Edited by: Sabir Hussain
hindustantimes.com| Edited by: Sabir Hussain
Hindustan Times, New Delhi
The thrust of the government’s efforts will remain on making India self-reliant in line with the Prime Minister’s call on Tuesday.
The thrust of the government’s efforts will remain on making India self-reliant in line with the Prime Minister’s call on Tuesday.(ANI file photo )

Union Finance Minister Nirmala Sitharaman on Wednesday announced that the government will infuse Rs 50,000 cr into MSMEs through a Fund of Funds as part of the economic package to overcome the economic stagnation brought about by the .Covid-19 pandemic.

“Rs 50,000 cr. equity infusion for MSMEs through Fund of Funds. It will be operated through a Mother Fund and few daughter funds. This will help to expand MSME size as well as capacity,” she said at a briefing to outline the contours of the package that Prime Minister Narendra Modi had announced during his address to the nation on Tuesday.

Also Read: Definition of MSMEs is being changed in favour of MSMEs, says Nirmala Sitharaman

The Fund of Funds will be set up with a corpus of Rs 10,000 crore and will provide equity funding for MSMEs with growth potential and viability.

The Fund of Funds will be operated through a Mother Fund and few daughter funds.

The fund structure will help leverage Rs 50,000 cr of funds at daughter funds level.

Sitharaman said the step will help MSMEs to expand their size as well as capacity and will encourage MSMEs to get listed on stock exchanges.

Also read: Employers, employees contribution to EPF reduced to 10%, announces FM Sitharaman

The thrust of the government’s efforts will remain on making India self-reliant in line with the Prime Minister’s call on Tuesday.

ht epaper

Sign In to continue reading