The federal government-backed Self Reliant India Fund (SRIF) has committed more than Rs 50 billion to help MSMEs with growth capital in its first year of operations. Revealing this, an official statement said the SRI Fund had approved 38 ‘daughter funds’ with a commitment of over Rs 50 billion. SRIF, as the Mother Fund, invests up to 20% of the corpus of the Daughter Fund, which has to raise the balance of 80% of the capital from external sources. This arrangement maximizes the fund flow to the target MSME sector, and the contribution from SRIF gets leveraged five times, increasing investment in MSMEs significantly.
