(MENAFN- KNN India) State run Small Industries Development Bank of India (SIDBI) and Maharashtra government has entered into an agreement by setting up Rs 200 crore venture capital fund to provide finance to micro, small and medium enterprises (MSMEs) in the state.
Maharashtra Industrial Development Corporation (MIDC) CEO Bhushan Gagrani and Ananta P Sarma, MD and CEO of SIDBI Venture Capital Ltd, signed the MoU in the presence of chief minister Devendra Fadnavis and state industries minister Subhash Desai during a conference for MSMEs in Mumbai on Saturday.
SIDBI Venture Capital Managing Director and Chief Executive Officer Ananta Sarma said that the aim is to invest in firms to create a social impact on the common man.
He said the state has committed to contribute Rs 75 crore towards the fund. The rest will be raised from banks and other financial institutions.
The investment will be in the form of equity and we will have a share in the firm and also take risk along with the entrepreneur, added Sarma.
Maharashtra has also decided to come up with a dedicated industrial policy for MSMEs to provide them all the necessary incentives and facilities setting up of their businesses in the state.
Chief Minister Fadnavis said the government is working towards reducing the number of approvals required for setting up a business to 25 from the current 76.
State Industries Minister Subhash Desai said the government is planning to set up an organisation to cater to the needs of MSMEs. He said the trade and investment facilitation cell, 'Maitri', started by the government in Mumbai, will now be launched across the state in phases.
The cell will look into the requirements of investors and facilitates business partnerships for MSMEs, he added. (KNN Bureau)
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