Nitin Gadkari, the Union Minister on Wednesday declared that the government is looking forward to approve “Funds of Funds” worth Rs 10,000 to help in the purchase of 15 percent equity in MSMEs that have higher ranking of credit and are planning to list upon stock exchanges and draw out money from the capital markets.
Based on several aspects such as annual turnover, exports and GST payment, a different scheme is being formulated which would be under the control of National Small Industries Corporation or any another body of government.
Government is aiming towards the utilization of Fund’s corpus by micro, small and medium enterprises that would have rating of AAA. High credit worthiness is implied by AAA.
The minister for MSMEs also said that finance Ministry has recently approved the proposal for a Funds of Funds worth Rs 10,000 crore. The team is looking towards to get it placed in front of the Cabinet and the declarations would be made soon.
Around 15 percent of the total amount which would be rasied by AAA-rated MSME from the capital market would mark the contribution made by government with the help of Fund as equity. The minister said that they are waiting for the approval from the end of cabinet and would be soon implementing as it gets approval.
Gadkari also stated India Inc. to look into the financial status of the government and banks while demanding their needs.
Amid the COVID-19, the government is also going through crisis. There are few of the governments that do not have much money to pay salaries to their staff members.