Government announces Rs 50,000 Crore Fund of Funds to boost MSMEs
- Finance Minister Nirmala Sitharaman 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.
- 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.
- It 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.
- Will help to expand MSME size as well as capacity.
- Will encourage MSMEs to get listed on main board of Stock Exchanges.
- The Ministry of Micro, Small and Medium Enterprises, a branch of the Government of India, is the apex executive body for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
- Minister of MSMEs – Nitin Gadkari
- Minister of State – Pratap Chandra Sarangi