MUMBAI: Government-backed Self Reliant India Fund (SRIF) on Friday announced that it has committed over Rs 5,000 crore to help small businesses with growth capital in its first year of operations. The fund, which started as part of the government's flagship 'Atmanirbhar Bharat' programme, has provided approvals to 38 'daughter funds' with a commitment amount of more than Rs 5,000 crore, as per an official statement.
It has a 'Mother Fund-Daughter Fund' structure wherein SRIF, the mother fund, invests up to 20 per cent of the corpus of the Daughter Fund, which raises the balance 80 per cent of the capital from outside sources, it explained.
The arrangement is designed to maximise the fund flow to the target micro, small and medium enterprises (MSME) sector as the contribution from SRIF gets leveraged five times, taking the total value of investible funds into MSMEs to Rs 50,000 crore.
Amitava Chatterjee, the managing director and chief executive of SBI Capital Markets, said the fund has already helped provide equity funding of more than Rs 2,300 crore to more than 125 MSMEs across sectors, such as climate, agriculture, defence, education, pharma and industrials. The statement said the Rs 2,300 crore of investments have already helped in supporting employment to 20,000 people.