New Delhi, Nov 23 (KNN) The Ministry of MSME, Government of India, has created a Fund of Funds called as Micro Small and Medium Enterprises Fund for promotion and development of the MSMEs.

In a notification, DC MSME SN Tripathi said, “In exercise of the powers conferred by section 12 of the Micro, Small and Medium Enterprises Development Act, 2006 (27 of 2006), the Central Government hereby establishes a fund to be called the Micro Small and Medium Enterprises Fund."

The objective of the Fund will be promotion, development and enhancing the competitiveness of micro, small and medium enterprises (MSMEs), particularly of the micro and small enterprises.

The fund will be under administrative control of the Central Government in the Ministry of MSME and the day to day affairs of the Fund shall be managed by the Governing Council.

The Governing Council would comprise of Minister in charge of the Ministry of the Micro, Small and Medium.

Enterprises as Chairperson ex officio; Secretary and Additional Secretary & Development Commissioner MoMSME, Financial Adviser, MoMSME, Joint Secretary to the Government of India responsible for MSMEs in MoMSME and Joint Secretary to the Government of India responsible for Agro and Rural Industry in MoMSME will be the members ex officio.

Two members of the National Board for MSMEs, to be nominated by the Chairperson of the Board, will be the Member and Additional Development Commissioner will be the Member Secretary.

The quorum of the Governing Council will be Five members and the decision of the Governing Council shall be by majority of members present in a meeting.

The Governing Council will meet at least once in six months to assess the feasibility of funding the scheme or project or activity and then prioritise and approve the projects or schemes or activities on the basis of criteria laid down by it.

The agency to which the moneys from the Fund has been released will be required to  submit the utilisation certificate to the Member Secretary.

A quarterly progress report of all projects, schemes or activities for which money out of the Fund has been released will have to be sent to the Member- Secretary within thirty days of the quarter ending June, September, December and March every year.

Appropriate MSME Fund rules 2016 have been framed which has come into force from October 28, 2016. (KNN Bureau)