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Self-Reliant India Fund

 

Source: PIB

 Context: As part of the Aatmanirbhar Bharat package, the Indian government announced a Rs. 50,000 crore Equity Infusion for Micro, Small, and Medium Enterprises (MSMEs) through the Fund of Funds. The initiative aims to provide equity funding to viable and promising MSMEs to help them grow and become larger units.

  • The Self-Reliant India (SRI) Fund has been established to implement this plan, with Rs. 10,000 crores contributed by the Government of India and Rs. 40,000 crores from Private Equity and Venture Capital funds.
  • The SRI Fund operates through a mother-fund and daughter-fund structure for equity or quasi-equity investments. The NSIC Venture Capital Fund Limited (NVCFL) is registered as the Mother Fund under the SRI Fund implementation.

 

The government has also taken several other initiatives to support the MSME sector, including the launch of the Champions 2.0 portal, the MSME Champions Scheme for financial assistance, budgetary support to Credit Guarantee Fund Trust for Micro & Small Enterprises, and the “Raising and Accelerating MSME Performance (RAMP)” program aimed at strengthening MSMEs’ access to credit and markets and promoting technology upgradation.