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Cabinet May Approve ₹10,000 Crore SME Growth Fund
The government is considering a fund to help some small businesses get money to grow.
The fund would provide equity support to businesses that meet set rules and show promise.
It was announced in the FY27 Budget by Finance Minister Nirmala Sitharaman.
The Union Cabinet may decide on it at a Tuesday meeting.
The fund is meant to help businesses that have trouble getting financing, are under financial stress or need newer technology.
The Budget also provided a ₹2,000 crore top-up for another fund that supports small businesses.
Other plans aim to help MSMEs get paid and borrow against invoices.
The Cabinet has not yet been reported to have approved the new fund.
The Union Cabinet may approve a ₹10,000 crore SME Growth Fund at its Tuesday meeting, according to a Moneycontrol report.
Announced by Finance Minister Nirmala Sitharaman in the FY27 Budget, the fund is intended to provide equity support to eligible businesses with growth potential.
The fund aims to help MSMEs expand and address financing constraints, financial stress and outdated technology.
The Budget also included a ₹2,000 crore top-up for the Self-Reliant India Fund, with further allocations expected during the year.
Other proposed MSME measures include making TReDS mandatory for central public sector enterprises, linking it with GeM, expanding credit guarantees and allowing TReDS receivables to become asset-backed securities.
- Who
- The Union Cabinet may consider the fund; eligible small businesses and MSMEs are intended beneficiaries.
- What
- A proposed ₹10,000 crore SME Growth Fund would provide equity support to selected enterprises.
- Where
- India.
- When
- The Cabinet may consider it at a Tuesday meeting; the article does not specify the date.
- Why
- To support business expansion and ease financing constraints for eligible small businesses.
Key facts
- Proposed fund
- SME Growth Fund
- Fund size
- ₹10,000 crore
- Status
- Cabinet approval was possible at a Tuesday meeting, according to a Moneycontrol report.
- Announced by
- Finance Minister Nirmala Sitharaman
- Budget
- FY27 Budget
- Self-Reliant India Fund top-up
- ₹2,000 crore
- Other measures
- Proposals include TReDS requirements for central public sector enterprises, GeM integration, expanded credit guarantees and asset-backed securities based on TReDS receivables.
Sources
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