Cabinet approves USD 808 million for scheme to improve MSME performance

The union cabinet-led by Prime Minister Narendra Modi approved USD 808 million ( ₹6,062.45 crore) for a new World Bank-assisted scheme ‘Raising and Accelerating MSME Performance’ (RAMP) on Wednesday. The new scheme is expected to commence in the financial year of 2022-23. 

Out of the total amount, ₹3,750 crore ($ 500 million) would be a loan from the World Bank, and rest of amount – ₹2,312.45 crore ($ 308 million) will be funded by the government of India.

Aimed at improving access to market and credit, the RAMP is also focussing on strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments, as well as greening MSMEs. The programme has identified two areas – strengthening institutions and governance of the MSME programme, and support to market access, firm capabilities and access to finance.

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The World Bank-assisted programme supports various Covid-19 Resilience and Recovery Interventions of the Ministry of Micro, Small, and Medium Enterprises (MoMSME). It will also address the covid-related challenges, along with other generic challenges in the MSME sector. 

It will also bolster the inadequately addressed blocks of capacity building, handholding, skill development, quality enrichment, technological upgradation, digitization. In addition to this, the program seeks to scale up implementation capacity and MSME coverage in states as well. 

This program is set to complement the PM Modi’s ‘Aatmanirbhar Bharat’ mission with enhancement in industry standards, practices. It will also provide necessary technological inputs to the MSMEs to make them competitive and self-reliant. 

The RAMP is set to directly or indirectly benefit all 63 million enterprises that qualify as MSMEs. Around 5.55 lakh MSMEs are specifically targeted for enhanced performance, and an increase of over 70,000 women MSMEs is envisaged. 

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Along with this, all states and UTs will be invited to prepare Strategic Investment Plans (SIPs) under this programme, and the placed under the SIPs will be funded as per their appraisals.