Finance minister Nirmala Sitharaman in May this year announced a fund of funds for MSMEs to provide Rs 50,000 crore equity support.
“Most of the formalities are over.. in a very short while we will go to the market and invite private equity firms and venture capital funds,” Sharma said in his address at the CII Money Mobility week on Tuesday.
“Because what the scheme is, one part, Rs 10,000 crore will come from the government and rest 40 (Rs 40,000 crore) is to be leveraged through the market through VC and PE firms,” Sharma said.
Moreover, the fund will be operated through a Mother Fund and a few daughter funds to enable MSMEs expand in size and capacity and would also encourage them to list on the main board of stock exchanges, Sitharaman had said while launching the fund as part of the Atma Nirbhar Bharat relief package.
While the government is at it, it is also pursuing two additional agendas– credit rating and listing of MSMEs– Sharma said.
“Because that makes the life of VC and PE firms easier, and even for financial institutions, for that matter,” Sharma said.
“The second thing is, we are wanting to take on very aggressively to see that most of the MSMEs go for listing.. that opens up many new gates for the growth of MSMEs,” he added.
Sharma, who took charge of the MSME ministry around four months ago, said that he is aggressively pursuing central public sector units, and State governments to clear dues of MSMEs.
Sharma said that since the new portal for registration of MSMEs was launched on July 1, over three lakh MSMEs have registered themselves on the portal, which he said was completely paperless.
“It is a complete process reengineering so far as the registration as per the new definition is concerned,” Sharma said.
The new definition classifies a micro enterprise where the investment in plant and machinery or equipment does not exceed one crore rupees and turnover does not exceed five crore rupees, a small enterprise as that where the investment in plant and machinery or equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees and a medium enterprise, as one where the investment in plant and machinery or equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.