Recently, a joint outreach program called BizAmp was launched by the Ministry of Micro, Small, and Medium Enterprises (MSME) in collaboration with NSIC Venture Capital Fund Limited (NVCFL). The event took place in Dimapur, Nagaland, under the banner of the Self-Reliant India (SRI) Fund. This unique initiative marked the beginning of targeted capital support for businesses in the northeastern region.
Understanding BizAmp
A first-of-its-kind initiative in the Northeast Region, BizAmp aims to empower local micro, small, and medium enterprises (MSMEs) by helping them exploit financial benefits offered by NVCFL’s SRI Fund. BizAmp was designed as a platform for beneficiary MSMEs to share their stories and inspire aspiring entrepreneurs. The event showcased the concerted efforts of both State and Central governments, with Industry Secretaries from various northeastern states shedding light on various MSME-focused policies.
Overview of the SRI Fund
The SRI Fund is a part of the ‘Atmanirbhar Bharat’ program, a flagship initiative of the Indian government. Established to support MSMEs financially, it aims to facilitate faster growth, turning these enterprises into national and international champions, and strengthening India’s self-reliance through the development of relevant technologies, goods, and services.
SRI Fund Structure
The SRI Fund operates as a Fund of Funds, meaning it invests in other funds rather than directly in companies. Boasting an overall corpus of INR 10,006 crore, the SRI fund utilizes a mother-fund and daughter-fund structure, with the Government of India acting as the anchor investor. The daughter funds, composed mostly of venture capital and private equity funds, are run in line with the Securities and Exchange Board of India (SEBI) regulations, falling under the Category I and Category II Alternate Investment Funds (AIFs). These daughter funds then invest in MSMEs covered under the Micro, Small & Medium Enterprises Development Act, 2006. NSIC Venture Capital Fund Limited manages the SRI fund.
Impact of the SRI Fund on MSMEs
By providing growth capital through equity/quasi-equity/equity-like structured instruments, the SRI Fund acts as a catalyst for MSME growth across the country.
The Significance of Empowering Northeastern MSMEs
Supporting the growth and development of MSMEs in Northeast India is vital to both regional and national economic prosperity. These businesses serve as valuable sources of employment, drive exports, spur innovation and support rural development. Local communities, particularly women and young people, stand to benefit greatly from an invigorated MSME sector in the region.
India’s Initiatives in Empowering Northeastern MSMEs
In a bid to foster entrepreneurship and trade opportunities, the Indian government organized the Northeast MSME Conclave in Guwahati. The conclave zeroed in on critical areas such as infrastructure development, market linkages, the establishment of MSME parks and tool rooms, and the introduction of a policy dedicated exclusively to the Northeast.
