RAMP Scheme for MSMEs: The MSME Ministry had allocated Rs 1,170 crore (budget estimates) for the scheme in FY24 in comparison to Rs 455 crore (revised estimates) in FY23.
RAMP scheme to benefit MSMEs: RAMP (Raising and Accelerating MSME Productivity) is a central government scheme launched in June last year by Prime Minister Narendra Modi to support the implementation capacity and coverage of MSMEs in India. The scheme, assisted by the World Bank, intends to complement the Atma Nirbhar Bharat mission by encouraging MSMEs to innovate and ideate and incubate new businesses as well through quality standards along with enhancing their market access, competitiveness and self-reliance.
RAMP Scheme Objectives, Features and Benefits
According to the Finance Ministry, 6.35 lakh MSMEs are likely to benefit from better access to market, finance and credit under RAMP. The targetted beneficiary count is higher than the earlier target of 5.5 lakh MSMEs announced in a statement by the World Bank back in June 2021, around a year after the scheme was originally announced back in 2020 by the government and the World Bank to support Covid-hit MSMEs in the country.
The key objectives of RAMP are to accelerate centre-state collaboration in MSME promotion and development, enhance the effectiveness of existing schemes of the MSME Ministry for technology upgradation, strengthen the receivable financing market for MSMEs, enhance the effectiveness of CGTMSE, promote guarantee for greening initiatives of MSEs and women-owned MSEs, and reduce cases of delayed payments to MSEs.
In a tweet on January 20 this year, the ministry said 25 states and one union territory have been onboarded to be part of the scheme. 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 while the remaining Rs 2312.45 crores would be funded by India. The duration of the scheme is five years from FY22 till FY26.
The MSME Ministry had allocated Rs 1,170 crore (budget estimates) for the scheme in FY24 in comparison to Rs 455 crore (revised estimates) in FY23. The scheme will begin with five first mover’ states – Gujarat, Maharashtra, Punjab, Rajasthan, and Tamil Nadu which are home to reportedly 54 per cent of all registered MSMEs in the country, Minister of State for MSMEs Bhanu Pratap Singh Verma had informed the Rajya Sabha in July last year.
Moreover, the government had earlier informed that the financial support under RAMP will be routed into the MSME Ministry’s budget against ‘Disbursement Linked Indicators’ (DLIs) to back the ministry’s various MSME programmes. The DLIs would be the National MSME Reform Agenda, accelerating the MSME sector centre-state collaboration, strengthening the invoice discounting market for MSMEs, boosting the effectiveness of the CGTMSE scheme, etc.
MSMEs can apply for the scheme through an application form on its online portal. MSMEs registered under the MSME Development Act and on the Udyam registration portal will be eligible to apply for the scheme.
Also, the project report, outlining the scope, objectives, methodology, and expected outcomes of the project are among the documents required, according to the scheme’s details. The project report requires a detailed financial plan with estimated product cost and collateral-free financial assistance required under the scheme. Further, the business plan, challenges in the business and strategies to be implemented to enhance the business’s productivity and competitiveness are required.
