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Rs 50,000 crore SRI Fund enables over Rs 8,000 crore investment in this many MSMEs: Govt data

The fund invests in SEBI-registered Category I and Category II AIFs called daughter funds which in turn invest in MSMEs.

The Rs 50,000 crore Self Reliant India (SRI) Fund for equity infusion into MSMEs has invested Rs 8,353 crore in 450 MSMEs as of June 30, 2024, since its launch in May 2020. Sharing the data in a written reply to a question in the Lok Sabha on Thursday, Minister of State in the MSME Ministry Shobha Karandlaje said the scheme has a provision of Rs 10,000 crore from the central government and Rs 40,000 crore through private equity and venture capital funds.  

The fund, which operates with a mother-fund and daughter-fund structure for equity or quasi-equity investments, had empanelled 53 daughter funds till June this year, Karandlaje informed. It invests in SEBI-registered Category I and Category II daughter funds which in turn invest in MSMEs.  

NSIC Venture Capital Fund Limited (NVCFL), operating as the mother fund, is a Category-II Alternative Investment Fund (AIF) with SEBI. The daughter funds investing in MSMEs are required to invest at least 5x the amount of capital contribution received from the SRI Fund.  

Among the daughter funds empanelled are TATA Capital Healthcare Fund, Aavishkaar India Fund, SVL-SME Fund, Gaja Capital India Fund, Avaana Sustainability Fund, ICICI Ventures’ India Advantage Fund S5 I, and more. 

The corpus of the fund is likely to be enhanced to Rs 50,000 crore with Rs 40,000 crore from daughter funds during the 15-year tenure of the fund while the investment or commitment period is 13 years.  

According to the fund’s guidelines, it invests in MSMEs with a “defined business plan for growth indicating positive funds flow.” Further, the compound annual growth of the MSME for the previous three years is also considered while the investment made and equity diluted is according to the assessment of the MSME borrower. 

Till July last year, the fund had put Rs 4,885 crore in MSMEs and Rs 3,000 crore in over 140 MSMEs till July January last year, FE Aspire had reported.