Cabinet approves $808 million for 'Raising and Accelerating MSME Performance' scheme
New Delhi, March 30: The Union Cabinet chaired by Prime Minister Narendra Modi approved USD 808 million (Rs 6,062.45 crore) for a World Bank assisted programme on Raising and Accelerating MSME Performance (RAMP) on Wednesday.
According to an official statement, RAMP is a new scheme that would commence in the Financial year 2022-23. The World Bank would provide a loan of Rs 3,750 crore (USD 500 million) for the scheme, with the balance Rs 2,312.45 crore (USD 308 million) coming from the Indian government. RAMP (Raising and Accelerating MSME Performance) is a World Bank-supported Central Sector Scheme that assists various Corona Virus Disease 2019 (COVID) Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises (MoMSME).
The programme aims to improve market and financial access, develop institutions and governance at the national and state levels, improve Centre-State linkages and partnerships, handle delayed payments issues and green MSMEs.
The RAMP initiative will strive to scale up implementation capacity and MSME coverage in States, in addition to strengthening the MoMSME's capability at the national level.
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The RAMP programme will address the MSME sector's generic and Covid-related challenges by enhancing the impact of existing MSME programmes, particularly on the competitiveness front.
The Government of India formulated and proposed RAMP to boost MSMEs in accordance with the recommendations of the U K Sinha Committee, the KV Kamath Committee, and the Prime Minister's Economic Advisory Council (PMEAC).
The preliminary proposal on RAMP was approved by the Department of Economic Affairs (DEA) during the 97th Screening Committee meeting. The World Bank then conducted technical and fiduciary assessments, which were followed by Missions, extensive discussions with states and other stakeholders.
Following that, an Expenditure Finance Committee (EFC) Note was prepared and distributed to the relevant line Ministries/Departments for their feedback. In a meeting on March 18, 2021, the EFC considered the Note and recommended the proposal to the Cabinet for consideration.
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-PTC News
