The ministry of micro, small & medium enterprises (MSME) has prepared a cabinet note on creation of National Fund for Unorganised Sector (NAFUS) with initial corpus of
Rs 1,000 crore, MSME secretary Dinesh Rai said on Thursday.
The formation of the fund was suggested by the National Commission for Enterprises in the Unorganised Sector in 2007 to meet the gaps in financial assistance to the unorganised sector.
?We have prepared a Cabinet note on NAFUS,? Rai told reporters on the sidelines of a CII seminar on SME exchange. Addressing the conference, Rai said starting an SME exchange will help in satiating MSMEs? appetite for risk capital and ?eventually lead to higher governance standards in this industry.? About 5.8 crore units in the sector are facing problems in getting credit from banks and other financial
institutions.
Economic affairs joint secretary KP Krishnan stressed on the need for strengthening the entire eco system before bringing the exchange activities to life. ?Legal, venture capital, private equity and taxation aspects are important areas that need to be looked at,? he said.
Exit clauses also require thorough thinking for a successful SME exchange model, Krishnan added.