He mentioned the federal government desires the Fund’s corpus to be utilised by micro, small and medium enterprises (MSMEs) having AAA ranking. The AAA ranking implies high credit worthiness.
“We have submitted a proposal for a Fund of Funds of Rs 10,000 crore which has been approved by the Finance Ministry. It is going to be placed before the Cabinet and will soon be cleared,” mentioned the minister for MSMEs.
Gadkari mentioned up to 15 per cent of the quantity an AAA-rated MSME raises from the capital market can be contributed by the federal government by the Fund as fairness.
The minister mentioned he was anticipating Cabinet clearance for the Fund soon and can implement it instantly upon approval.
Interacting with members from the PHD Chamber of Commerce and Industry by way of video convention, Gadkari exhorted India Inc to additionally take into account the monetary situation of the federal government and banks whereas inserting forth their calls for, amid the coronavirus-induced financial disaster.
“The government is also facing a financial crisis. Some state governments do not have enough money to pay salaries to staff next month. The situation of banks is also challenging in terms of their survival,” mentioned the minister, emphasising the necessity to strike an equilibrium to guarantee everybody’s survival.