The Union Cabinet chaired by prime minister Narendra Modi on Wednesday approved ₹6,062.45 crore for "Raising and Accelerating MSME Performance" (RAMP), a World Bank-assisted programme.
The new scheme for micro small and medium enterprises would commence in the financial year 2022-23.
The total outlay for the scheme is ₹6,062.45 crore, out of which ₹3,750 crore would be a loan from the World Bank and the remaining ₹2,312.45 crore would be funded by the Government of India.
The RAMP scheme will directly or indirectly benefit all 63 million enterprises that qualify as MSMEs, the government said. "A total of 5,55,000 MSMEs are specifically targeted for enhanced performance and, in addition, expansion of target market to include service sectors and increase of about 70,500 women MSMEs is envisaged," it said.
The programme aims to improve access to market and credit, strengthening institutions and governance at the Centre and state, improving Centre-state linkages and partnerships, addressing issues of delayed payments and greening of MSMEs.
It will address the generic and Covid-19 related challenges in the MSME sector by way of impact enhancement of existing MSME schemes, especially, on the competitiveness front.
The programme will bolster the inadequately addressed blocks of capacity building, handholding, skill development, quality enrichment, technological upgradation, digitisation, outreach and marketing promotion among other things.
The new scheme, through enhanced collaboration with states, will be a job-enabler, market promoter, finance facilitator, and will support vulnerable sections and greening initiatives, the government said.
In states where the presence of MSMEs is on the lower side, the programme will usher in larger formalisation resulting from the higher impact of the schemes covered under RAMP.
RAMP, according to the Centre, will complement the Atma Nirbhar Bharat mission by fostering innovation and enhancement in industry standards, practices and provide the necessary technological inputs to the MSMEs to make them competitive and self-reliant, enhancing exports, substituting imports, and promoting domestic manufacturing.
RAMP was formulated and proposed by the government for strengthening MSMEs in line with the recommendations made by UK Sinha Committee, KV Kamath Committee, and Economic Advisory Council to the Prime Minister (PMEAC).
The programme has identified two results areas after the preliminary missions and studies: Strengthening Institutions and Governance of the MSME Programme, and Support to Market Access, Firm Capabilities and Access to Finance.
An important component of RAMP is preparation of Strategic Investment Plans (SIPs), in which all states and UTs will be invited. The SIPs would include an outreach plan for identification and mobilisation of MSMEs under RAMP, identify key constraints and gaps, set milestones and project the required budgets for interventions in priority sectors including renewable energy, rural and non-farm business, wholesale and retail trade, village and cottage industries, women enterprises etc.
The overall monitoring and policy overview of RAMP would be done by an apex National MSME Council, headed by the minister for MSME, including representation from various ministries and supported by a secretariat.