PIB News Update:Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds • MSMEs face severe shortage of Equity. • Fund of Funds with Corpus of Rs 10,000 crores will be set up. • Will provide equity funding for MSMEs with growth potential and viability. • FoF will be operated through a Mother Fund and few daughter funds • Fund structure will help leverage Rs 50,000 cr of funds at daughter funds level • Will help to expand MSME size as well as capacity. • Will encourage MSMEs to get listed on main board of Stock Exchanges. • Low threshold in MSME definition have created a fear among MSMEs of graduating out of the benefits and hence killing the urge to grow. • There has been a long-pending demand for revisions. Announcement: • Definition of MSMEs will be revised • Investment limit will be revised upwards • Additional criteria of turnover also being introduced. • Distinction between manufacturing and service sector to be eliminated. • Necessary amendments to law will be brought about.
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