According to MSME Minister Narayan Rane, the Self Reliant India Fund will benefit more than 5000 Micro, Small, and Medium Enterprises (MSMEs) in India with its corpus of ₹50,000 crores. The SRI Fund or Self Reliant India Fund was launched in May 2020 as a part of the Atmanirbhar package ‘fund of funds' as a measure to help MSMEs face a severe shortage of capital, especially during the Covid pandemic.
The Minister for Micro, Small and Medium Enterprises (MSME) Narayan Rane, had provided a written reply to the Lok Sabha that “a commitment of ₹1,080 crores had been approved so far, as informed by NSIC Venture Capital Fund Limited”.
What is the Self Reliant India Fund?
- The Self Reliant India fund was launched in May 2020 by Finance Minister Nirmala Sitharaman.
- Once operational, the fund will invest in MSMEs through equities, to help with their growth, expansion and stock market listing.
- This Fund is a SEBI-registered Category-II Alternative Investment Fund (AIF)
- It operates through the mother-fund and daughter-fund structures.
- The SRI Fund was launched as a scheme under NVCFL(NSIC Venture Capital Fund Limited)
- NVCFL is a 100% subsidiary of The National Small Industries Corporation Limited (NSIC) under the Ministry of MSME
- Under the SRI Fund, the Government of India is the sole anchor investor with a corpus of ₹10,000 crores as Mother Fund.
- 80% of the ₹50,000 crore fund will come from daughter funds which will invest in MSMEs.
- The daughter funds will raise capital from sources such as banks, financial institutions, HNIs, venture capital and private equity investors, PSUs, institutional investors, etc. as per the scheme.
Which daughter funds are included in the SRF?
There are 5 daughter funds currently a part of the Self Reliant Fund -
- MegaDelta Fund I
- Carpediem Capital Partners Fund II
- BanyanTree India Growth Capital Fund
- Stakeboat Capital Fund II
- SVL-SME Fund(Neev II)
MSME Minister Rane in his written reply said that “Assuming an average investment of Rs 10 crore per MSMEs, approximately 5000 MSME are likely to be benefited,”. Narayan Rane also said that a commitment of Rs 1,080 crore has been approved so far, as informed by NSIC Venture Capital Fund Limited.