ENA MSME 2024-12-13 14:50:02 <p><span style="font-size:14px"><strong>New Delhi, Dec 13 (KNN)</strong> The Self Reliant India (SRI) Fund, launched in May 2020 with an ambitious Rs 50,000 crore allocation to boost equity infusion into Micro, Small, and Medium Enterprises (MSMEs), has invested Rs 9,612 crore in 523 MSMEs as of November 30, 2024.</span></p> <p><span style="font-size:14px">In the current financial year alone, Rs 1,964 crore was infused into 91 MSMEs, a significant effort to support MSME growth and recovery.</span></p> <p><span style="font-size:14px">The scheme, which aims to provide growth capital to MSMEs, showed strong year-on-year growth. In FY24, investments grew to Rs 3,306 crore in 107 enterprises, compared to Rs 3,007 crore in 250 enterprises in FY23, and Rs 1,335 crore in 75 units in FY22.</span></p> <p><span style="font-size:14px">This data was shared by Shobha Karandlaje, Minister of State for MSME, in response to a question in the Lok Sabha.</span></p> <p><span style="font-size:14px">The SRI Fund operates on a unique mother-fund and daughter-fund structure. The mother fund, NSIC Venture Capital Fund Limited (NVCFL), a wholly-owned subsidiary of the National Small Industries Corporation (NSIC), is a Category-II Alternative Investment Fund (AIF) regulated by SEBI.</span></p> <p><span style="font-size:14px">The daughter funds, which include prominent names like Tata Capital, ICICI Venture, and SIDBI Venture, are tasked with investing at least five times the capital contribution they receive from the SRI Fund.</span></p> <p><span style="font-size:14px">The schemes corpus is divided into Rs 10,000 crore from the central government and Rs 40,000 crore from private equity and venture capital funds, designed to provide equity or quasi-equity investments in MSMEs. To date, 53 daughter funds are empanelled to facilitate these investments.</span></p> <p><span style="font-size:14px">Despite the positive growth, the scheme has faced setbacks. Seven companies, which received investments from the SRI Fund, have shut down, including Kid Aptivity Technologies, Quality Tutorials, and Signalx, as per the details shared by the Minister.</span></p> <p><span style="font-size:14px">The SRI Fund continues to play a vital role in strengthening India's MSME sector, fostering entrepreneurship and innovation. However, challenges remain in ensuring the sustainability and long-term success of funded enterprises.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 40239 https://knnindia.co.in/news/newsdetails/msme/sri-funds-equity-infusion-into-msmes-reaches-rs-9612-crore-as-of-november-2024 2024-12-13 14:50:02 knnindia.co.in