New Delhi, Mar 16 (KNN) The Ministry of Micro, Small and Medium Enterprises (MSME) announced a significant milestone in its Self-Reliant India (SRI) fund initiative, revealing an infusion of Rs 7,593 crore into 425 MSMEs. 

Launched under the Aatmanirbhar Bharat package in May 2020, the SRI fund, valued at Rs 50,000 crore, has been instrumental in empowering small and medium enterprises across various sectors.

Managed by SBICAP Ventures, the private equity arm of the State Bank of India (SBI), the SRI fund operates with a unique mother-fund and daughter-fund structure. 

With an initial provision of Rs 10,006 crore from the government, supplemented by contributions from private equity and venture capital funds, the fund aims to provide essential equity infusion to foster the growth of MSMEs.

The National Small Industries Corporation Venture Capital Fund Limited (NVCFL) plays a pivotal role as the Mother Fund in implementing the SRI initiative. Acting as a Category-II Alternative Investment Fund (AIF) regulated by SEBI, NVCFL oversees the deployment of daughter funds into MSME ventures. 

These daughter funds, including notable names like TATA Capital Healthcare Fund and Aavishkaar India Fund, are required to invest a minimum of five times the capital received from the SRI Fund.

Highlighting the broad spectrum of support, the MSME Ministry emphasised that the SRI fund is sector-agnostic, catering to MSMEs engaged in diverse fields such as agriculture, pharmaceuticals, automotive, and chemicals, whether in manufacturing or services.

Simultaneously, recent data from the Reserve Bank of India (RBI) underscores the growing momentum in MSME financing. 

Bank credit extended to MSMEs under the priority sector lending surged to Rs 23.87 lakh crore by December 2023, marking a notable 19.1 per cent increase from the previous year. 

This deployment accounted for 14.9 per cent of India's total non-food credit, signifying the critical role of MSMEs in the country's economic landscape.

Moreover, there has been a commendable reduction in gross non-performing assets (NPAs) associated with MSME loans. 

Scheduled commercial banks reported a decline of 14.3 per cent in MSME NPAs, amounting to Rs 1.31 lakh crore in FY23, reflecting enhanced financial stability and resilience among MSMEs.

(KNN Bureau)