DIMAPUR, MAY 2: The Ministry of Micro, Small and Medium Enterprises (MSME), in collaboration with NSIC Venture Capital Fund Limited (NVCFL) is organising the first outreach programme under the Self Reliant India (SRI) Fund called BizAmp.
The event will take place at Agri-Expo Hall, Dimapur, on May 4.
BizAmp aims to empower and amplify businesses of MSMEs in the North Eastern States by leveraging the benefits of the SRI Fund.
Ahead of the scheduled event, on Tuesday, CEO of NSIC Venture Capital Fund Ltd., Saravana Kumar, interacting with the media here at Hotel Saramati, Dimapur, stated that the event will be an awareness programme and that more than 100 MSMEs across the 8 Northeastern States are participating in the event.
He mentioned that the SRI Fund (Mother Fund), was announced by the Government of India to help MSMEs after the sector faced setbacks due to the pandemic, and while much activity surrounding it and the start-up ecosystem is taking place in places like Delhi, UP, the GoI wants utilisation of the SRI Fund in places like the Northeastern States where industrialisation hasn’t boomed.
Responding to the question if it is necessary for entities to be legally registered to seek funds under SRI, Vijay Prakash, Zonal General Manager of NSIC, Guwahati said that entities which have done UDYAM registration can avail the funds. He shared that people also can get in touch with them through his phone number 9810115567.
On May 4, BB Swain, Secretary of the Ministry of MSME, will grace the occasion as Chief Guest. Other dignitaries attending the event include the Chairperson of NVCFL & Joint Secretary of the Ministry of MSME, Secretary of the North East Council, CMD of North Eastern Development Finance Corporation (NEDFi), CGM of SBI (NER), MD & CEO of SBICAP Ventures Ltd., and Director and CEO of NVCFL.
The SRI Fund, launched by the Government of India, boasts an outlay corpus of Rs 10,006 crore, focused on financing capital infusion into MSMEs through Daughter Funds. NVCFL, an Alternative Investment Fund (AIF), manages the SRI Fund and provides growth capital to MSMEs through equity, quasi-equity, and equity-like structured instruments. As of March 31, 2023, the fund had committed Rs. 5,120 crore in capital to 42 empanelled daughter funds.
BizAmp will host MSMEs from all 8 North Eastern States and concentrate on maximising capital benefits through NVCFL’s SRI Fund. The outreach programme offers a platform for the empanelled daughter funds of the SRI Fund to connect with MSMEs in the North Eastern Region of India.
Of the more than 100 MSMEs participating in the event as of now, about 40 are from Nagaland.
SRI Fund structure
The SRI Fund is an investment strategy that functions as a Fund of Funds, investing in other funds rather than directly in companies. It is structured with a Mother Fund and Daughter Funds, both registered as Alternate Investment Funds with SEBI. The Mother Fund provides funds to Daughter Funds, which then invest in MSMEs. The Daughter Funds can be Category I or II AIFs.
The Government of India will be the sole anchor investor in the Mother Fund, contributing Rs. 10,000 crore in a phased manner. Daughter Funds (SEBI registered entities) need to raise funds from external sources, and for every 4 units raised, they can solicit 1 unit from the Mother Fund, creating a 80:20 ratio of funds mobilised by the Daughter Funds and the Mother Fund, respectively.
The minimum fund released to a Daughter Fund is Rs. 25 crore, and the Mother Fund’s Rs. 10,000 crore investment leverages a total of Rs. 50,000 crores, with Rs. 40,000 crores raised by the Daughter Funds.
The MSMEs generally procure debt from financial institutions at a 3:1 debt-to-equity ratio, further enhancing the availability of growth funds for MSMEs.
(Page News Service)
