MSME Ministry to set up Rs 100 crore Innovation Fund

NEW DELHI: To encourage innovation in small and medium industries, the MSME Ministry has taken an initiative to set up a dedicated fund called India Inclusive Innovation Fund, with initial contribution of Rs 100 crore.

"The Ministry of Micro, Small and Medium Enterprises (MSME) has taken the initiative in consultation with National Innovation Council to set up a dedicated fund-India Inclusive Innovation Fund," Vayalar Ravi, who has been given additional charge of MSME Ministry, said in a written reply to Lok Sabha.

The amount allocated for the scheme for the current fiscal is Rs 100 crore, he added.

The scheme, which is at the approval stage, is likely to promote innovation which would improve the competitiveness and efficiency of small and medium enterprises, Ravi said.

Replying to another query, the minister said as on July 31, 2012, cumulatively 8.7 lakh proposals have been approved for guarantee cover for total sanctioned loan amount of Rs 41,794 crore under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

The scheme provides a guarantee cover in respect of the credit facility extended to new and existing micro and small units (both in manufacturing and services sectors).