With One District One Product (ODOP) scheme in its bag Uttar Pradesh would be the major beneficiary of the new fund launched by Small Industries Bank of India (SIDBI) and India EXIM Bank.
While launching Ubharte Sitare Fund (USF) in Lucknow on Saturday, the union finance minister Nirmala Sitharaman said that there are large number of MSMEs in UP compared to any other state in the country and such initiatives can turnaround the export oriented units. She said that maximum numbers of MSMEs in UP can avail the facilities provided under this new fund. The minister said that USF would extend help to MSMEs in terms of equity, debt and technology in order to make them champions in the field of export. She said that identifying such units and sector was an uphill task for this fund. However, in UP this was made easy due to the ODOP scheme. The finance minister said that with this fund would help ODOP in developing clusters in the districts. She called upon the UP government along with the SIDBI & EIM bank to make people aware about the benefits of USF in districts.
Speaking on the occasion SIDBI’s Chairman & Managing Director, Siva Subramanian Ramann, said UP has been very important for the financial institutions. He said that SIDBI has so far benefitted 1.7 lakh people in UP and its focus on providing financial assistance to the MSEMs. He said that the start-up fund of SIDBI has been very useful for the budding entrepreneurs and in UP this would be reactivated very soon with the help of state government. He said that while SIDBI’s digital innovation Prayas has been very beneficial, the aim of bank is to keep interest rates affordable of the MSMEs.
SIDBI chairman said that the Ubharte Sitare fund would invest by way of equity and equity like products in export-oriented units, both in the manufacturing, services sectors, across the country, and facilitate rising stars in the export market to attain greater heights. He said that the objective of the USF is to identify and invest in small and mid-size ventures in manufacturing and service industries with good export potential that could be future champions of export and handhold them through the growth phase.
During the event, Deputy Managing Director, India Exim Bank, Harsha Bangari, highlighted the Bank’s efforts, amidst the Covid pandemic, in developing and strengthening partnerships with leading academia, chambers of commerce, industry bodies, amongst others while operationalising the USP.
Under the Programme, an Alternative Investment Fund, christened “Ubharte Sitaare Fund”, co-sponsored by SIDBI and India Exim Bank with a contribution of Rs 40 crore each has been successfully registered with SEBI in July this year. The corpus of the Fund is ₹ 250 crore with a green shoe option of ₹ 250 crore.
Speaking on the occasion the UP minister for MSME, Siddharth Nath Singh said that despite covid challenge 70 lakh new MSME units were opened in the state. The state government has provided financial assistance of Rs 73000 crore to the MSME units in the pandemic time.