Budget 2012: Venture fund set up for MSMEs

NEW DELHI: In order to enhance availability of equity to MSME sector, Finance Minister Pranab Mukherjee announced a proposal to set up a Rs 5,000 crore India Opportunities Venture Fund with SIDBI.

"The Small and Medium Enterprises (SMEs) are the building blocks of our economy. They rely primarily on loans from banks and informal sources to raise capital. To enable these enterprises greater access to finance, two SME exchanges have been launched in Mumbai recently," he added.

With the objective of promoting market access of Micro and Small Enterprises, government has also approved a policy which requires Ministries and CPSEs to make a minimum of 20 per cent of their annual purchases from MSEs. Of this, 4 per cent will be earmarked for procurement from MSEs owned by SC/ST entrepreneurs.


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