The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a Rs 6,062.45-crore program, assisted by the World Bank, for improving the performance of micro, small and medium enterprises (MSMEs).
The program, Raising and Accelerating MSME Performance (RAMP), is a World Bank assisted central sector scheme which will support various COVID-19 pandemic related resilience and recovery interventions of the Ministry of Micro, Small and Medium Enterprises. The scheme would commence in financial year 2022-23.
The total outlay for the scheme is Rs 6,062.45 crore, of which Rs 3,750 crore would be a loan from the World Bank and the remaining Rs 2,312.45 crore would be funded by the Government of India, a release said.
"The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and state, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs," it said.
The RAMP program will also seek to scale up implementation capacity and MSME coverage in states. It will address the generic and COVID-related challenges in the MSME sector by way of impact enhancement of existing MSME schemes, especially on the competitiveness front.
"Further, the programme will bolster the inadequately addressed blocks of capacity building, handholding, skill development, quality enrichment, technological upgradation, digitization, outreach and marketing promotion, amongst other things," the government said in the release.
The program, through collaboration with states, will act as a job-enabler, market promoter, finance facilitator, and will support vulnerable sections and greening initiatives.
RAMP was formulated and proposed by the government for strengthening MSMEs in line with the recommendations made by U K Sinha Committee, KV Kamath Committee and Economic Advisory Council to the Prime Minister (PMEAC).
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