Wednesday, October 27, 2021

Minister of Finance launches ‘Ubharte Sitaare’ scheme for export-oriented MSMEs

Must Read

Under the scheme, an identified company is supported even if it is currently underperforming or may be unable to tap its latent potential to grow. The programme diagnoses such challenges and provides support through a mix of structured support covering equity, debt and technical assistance. Sitharaman said though the scheme was announced in her FY21 budget but because of the pandemic, implementation got delayed. “Some developed countries liked Germany have already tried this. They have identified champion sectors and tried to support them and handhold them, give them the necessary technology, and fund infusion through which it made a league of a difference for many of these champion sectors. For Ubharte Sitaare, largely the same principle is being followed. In a state like Uttar Pradesh with highest number of MSMEs, a project which was tailor made for MSMEs to identify champions among them and to also support them, the state justifies the launch of the scheme,” she added.

Eligible companies can be supported by both financial and advisory services by way of equity / equity-like instruments, term loans for modernisation, technology or capacity upgradation; and technical assistance for product adaptation, market development activities and viability studies.

The objectives of the programme are to enhance India’s competitiveness in select sectors through finance and extensive handholding support; identify and nurture companies having differentiated technology, products or processes, and enhance their export business; assist units with export potential, which are unable to scale up their operations for want of finance; identify and mitigate challenges faced by successful companies which hinder their exports; and assist existing exporters in widening their basket of products and target new markets through a strategic and structured export market development initiative.

Companies will be selected for support based on their unique value proposition in technology, products or processes that match global requirements; fundamentally strong companies with acceptable financials, and outward orientation; small and mid-sized companies with ability to penetrate global markets, with an annual turnover of up to approx. ₹500 crore; companies with a good business model, strong management capabilities, and focus on product quality.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!

News Highlights Business

  • Minister of Finance launches ‘Ubharte Sitaare’ scheme for export-oriented MSMEs
  • Check all news and articles from the Business news updates.
Disclaimer: If you need to update/edit this article then please visit our help center. For Latest Updates Follow us on Google News

More Articles Like This

Latest News