UP Govt to dedicate Venture Capital fund for MSMEs

New Delhi, May 10 (KNN) The newly elected government in Uttar Pradesh is in the process of formulating strategy to boost the Micro, Medium and Small Enterprises (MSMEs) sector.  The strategy includes providing financial help to starts-ups. 

Also there is a proposal by the Department of Small-Scale Industries and Export Promotion to dedicate a venture capital fund that could help the existing MSME units.

The Government is planning to follow phase by phase implementation

In the first phase, corpus of Rs 200 crores will be created. Of this 200 crores, 100 crore will be allocated by the State Government and the remaining amount will be provided by other financial institutions.  The Department is already in talks with Small Industries Development Bank of India (SIDBI) and other financial companies.

Talking to a national daily, Rajnish Dubey, Principal Secretary of Small Scale Industries Department said that the main aim of such strategy is to enable growth in the sector at a steady pace. 

He further informed that the Department will create a ‘Fund Management’ unit and will accept applications from MSMEs that are seeking upgradation. 80 per cent of the fund allotted for this set-up would be dedicated to upgradation and the rest 20 per cent will be kept for start-ups.

The strategy comes as a response to the declining industrial export from the State. Also according to a report by ASSOCHAM, there is a decline in investments in the MSME sector; therefore the new policy aims to provide fresh impetus to the industrial growth in the State. (KNN Bureau)