The Union Cabinet has approved a World Bank-assisted programme called Raising and Accelerating MSME Performance or RAMP, worth $808 million to improve the performance of micro, small, and medium enterprises (MSME).
The programme will commence in FY23, helping in scaling up implementation capacity and MSME coverage in states. Out of these $808 million, $500 million will be a loan from the World Bank, while the remaining $308 million will come from the Centre.
The government said the programme will look to “usher in larger formalisation resulting from the higher impact of the schemes covered” under RAMP. The $500 million loan from the World Bank's International Bank for Reconstruction and Development is for 18.5 years, which includes a grace period of 5.5 years.
One of the key components of the RAMP programme will be the construction of Strategic Investment Plans, or SIPs. With the programme, the government hopes to help all 6.3 crore enterprises that qualify as MSMEs directly and indirectly. However, 5.5 lakh MSMEs will be “specifically targeted” for enhanced performance.
The government said, “The programme aims at improving 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.”
