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.
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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.
{{/usCountry}}The fund structure will help leverage Rs 50,000 cr of funds at daughter funds level.
{{/usCountry}}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.
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The thrust of the government’s efforts will remain on making India self-reliant in line with the Prime Minister’s call on Tuesday.