RAMP scheme: Govt sets up committee for steering its Rs 6,000-cr scheme headed by MSME Secretary

Credit and Finance for MSMEs: The Rs 6,062.45-crore five-year RAMP scheme, started in the current financial year 2022-23, was announced back in 2020 by the government and the World Bank to support Covid-hit MSMEs in their business recovery.

msme ramp scheme
According to a World Bank statement in June 2021, 5.55 lakh MSMEs will be targeted for improving their growth. (Image: pexels)

Credit and Finance for MSMEs: Minister of State for MSMEs Bhanu Pratap Singh Verma on Thursday said the MSME Ministry has set up a committee for the recently launched World Bank-assisted central government programme Raising and Accelerating MSME Performance (RAMP) for MSMEs. The newly formed committee is headed by the ministry’s Secretary (BB Swain) with representation from allied ministries and departments for steering the RAMP scheme, Verma informed Parliament.

The Rs 6,062.45-crore five-year RAMP scheme, started in the current financial year 2022-23, was announced back in 2020 by the government and the World Bank to support Covid-hit MSMEs in their business recovery. Out of the total scheme’s outlay, while Rs 3750 crore was approved by World Bank in June last year, the remaining amount of Rs 2312.45 crore would be funded by the government. The scheme was launched by Prime Minister Narendra Modi in June this year, three months after it was approved by the Cabinet chaired by PM Modi. 

According to a World Bank statement in June 2021, 5.55 lakh MSMEs will be targeted for improving their growth. To achieve the target in five years, Verma said the ministry has prepared an ‘action plan’.

“During the first year of implementation, that is 2022-23, the programme aims, inter-alia, at inviting states/union territories to prepare roadmaps called Strategic Investment Plans (SIPs), for development and promotion of MSME sector. As per the RAMP programme plan, firm-level interventions will be taken up from the second year onwards of programme implementation,” Verma explained.

Subscribe to Financial Express SME newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises 

“The RAMP program will intensify efforts to support firms to return to pre-crisis production and employment levels while laying the foundations for longer-term productivity-driven growth and generation of much-needed jobs in the MSME sector,” said Junaid Ahmad, World Bank Country Director in India in the World Bank’s statement.

The government had recently informed that the monetary support under RAMP will be routed into the MSME Ministry’s budget against ‘Disbursement Linked Indicators’ (DLIs) to support the ministry’s various MSME programmes. The DLIs would include implementing the National MSME Reform Agenda, accelerating MSME sector centre-state collaboration, strengthening the receivable financing market for MSMEs, enhancing the effectiveness of the CGTMSE scheme, and reducing the incidence of delayed payments.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Photos