The government authorised a World Bank-backed programme costing USD808 million on Wednesday to aid and improve the functioning of the country’s Micro, Small and Medium Enterprises (MSMEs).
- The government said in an official statement that it would support various COVID-19 pandemic-related resilience and recovery interventions of the enterprises and that it would begin in financing at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, which envisions a programme called ‘Raising and Accelerating MSME Performance’ (RAMP) and is supported by a World Bank-assisted central sector scheme, the government said.
- The loan from the World Bank’s International Bank for Reconstruction and Development will be for USD500 million, with the remaining $308 million coming from the Centre, according to the statement.
- The loan from the World Bank’s International Bank for Reconstruction and Development will be for 18.5 years, with a 5.5-year grace period.
In addition, the RAMP initiative will work to increase state implementation capability and MSME coverage. It will address the MSME sector’s generic and COVID-related challenges by enhancing the impact of existing MSME schemes, particularly on the competitiveness front.