Rs 10,000 crore funds in the offing for MSMEs says Gadkari

New Delhi, Apr 18: Amid the economic uncertainty due to coronavirus, a "fund of funds" would be set up for export-oriented Micro, Small and Medium Enterprises (MSME) soon, Union minister Nitin Gadkari said on Friday.

The fund has got approval from the finance ministry and soon it would be cleared by the cabinet, the Union MSME minister said.

The industrial units which have a good turnover and pay GST regularly will get benefit from this fund, he said in a video conference with members of the India SME Forum and Young Presidents' Organisation.

"The government is with you and we have taken a lot of decisions. We are starting a fund of funds of about Rs 10,000 crore. GoodMSME units, the units which are into exports, those who have good turn-over and pay GST regularly, will get credit ratings.

"We are making a provision of Rs 10,000 crore initially....If a unit wants to raise, say, Rs 50 crore from equity market, then 15 per cent will be given by the government (purchased by the government)," the minister said.

"The government will sell those shares in future when they get a good price....We are taking efforts to turn MSMEs into a capital market," said Gadkari.