Nirmala Sitharaman to launch fund for export-oriented firms and startups today
Union finance minister Nirmala Sitharaman will on Saturday launch the ‘Ubharte Sitaare Fund’ for export-oriented small and mid-sized companies and startups in Uttar Pradesh’s Lucknow. The fund has been set up by the Exim Bank along with the Small Industries Development Bank of India (Sidbi). Sitharaman, in her budget speech in 2020, had pointed out that micro, small and medium enterprises (MSMEs) were important to keep the “wheels of the economy moving”, adding they create jobs, innovate and are risk-takers.
What is the Ubharte Sitaare Fund?
According to the Exim Bank’s release, the Ubharte Sitaare programme identifies companies in India which have the potential to be future champions in the domestic arena while also catering to global demands.
The fund is a mixture of structured support, both financial and advisory services through investments in equity or equity-like instruments, debt (funded and non-funded) and technical assistance (advisory services, grants and soft loans) to the Indian companies. Some of the objectives of the fund include enhancing India’s competitiveness in select sectors through finance and extensive handholding support, identifying and nurturing companies having differentiated technology, products or processes, and enhance their export business, according to the Exim Bank’s website.
Who is eligible for the Ubharte Sitaare Fund?
> Companies with a unique value proposition in technology, products or processes which match international requirements
> Fundamentally strong companies with acceptable financials, and outward orientation.
> Small and mid-sized companies with an ability to penetrate global markets and have an “annual turnover of up to approximately ₹500 crore.
> Companies that have a good business model, strong management capabilities and a focus on product quality.
The Exim Bank said on its website that the companies in sectors of automobiles and auto components, defence, chemicals, aerospace, food processing, textiles among others are eligible for the fund.
News agency PTI reported on Thursday that both the Exim Bank and the Sidbi have developed a pipeline of more than 100 potential companies, including those in the state of Uttar Pradesh.
Apart from launching the Ubharte Sitaare Fund, finance minister Sitharaman will also release the Exim Bank’s study on ‘Exports from Uttar Pradesh: Trends, Opportunities and Policy Perspective’ and the bank’s publication on Indian Sports Goods Industry: Strategies for Tapping the Export Potential’.