World Bank assisted, Rs 6,062-cr plan for MSMEs gets Cabinet approval

New Delhi, March 30

The government today approved a World Bank-backed programme worth US $808 million (Rs 6,062 crore) for assisting and improving the functioning of Micro, Small and Medium Enterprises (MSMEs) in the country.

A decision in this regard was taken at a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi, which envisages a programme called Raising and Accelerating MSME Performance (RAMP).

Objective: Better market access

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The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and state. Union govt

The government said the programme would support Covid-related resilience and recovery interventions of the enterprises and it would commence in 2022-23 financial year.

“Of the US $808 million, $500 million will be a loan from the World Bank, while the remaining $308 million will come from the Centre,” it said, adding that the loan from the World Bank’s International Bank for Reconstruction and Development is for 18.5 years, which includes a grace period of 5.5 years. The programme was approved by the World Bank’s Board of Executive Directors on June 4, 2021.

“The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and state, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs,” it read.