Lucknow, Sept 9 (KNN) To boost the traditional industries in the state, the Uttar Pradesh Government is planning to set up Rs 200 crore venture capital fund to promote micro, small and medium enterprises (MSMEs).

In this regard, the state government will sign a memorandum of understanding (MoU) with Small Industries Development Bank of India (SIDBI).

Under the fund, preference would be given to such MSMEs involved in manufacturing of traditional products and crafts under the aegis of state’s flagship One District, One Product (ODOP) scheme.

UP MSME and export promotion principal secretary Navneet Sehgal recently held a review meeting for the ODOP scheme.

During the meeting it was decided to tie-up with SIDBI to create the proposed venture capital corpus.

While, 25% or Rs 50 crore would be provided by the Yogi Adityanath government, the larger share of 75% or Rs 150 crore would be contributed by SIDBI for creating the venture capital fund to handhold and finance startups and enterprises.

SIDBI would also function as the venture capital fund manager and facilitate credit flow to the MSMEs, startups and artisans by coordinating with different microfinance institutions, non-banking financial companies (NBFC) and other such integrators.

The central refinance bank will also share the database of state ODOP enterprises and artisans for chalking out future roadmap pertaining to their training, capacity building, credit requirement and growth.