UP to tie-up with Bank of Baroda for MSME funding, plans venture fund

Yogi govt may soon sign MoU with the PSU bank, Sidbi and some NBFCs to facilitate easy funding for small- and medium-sized units

The Uttar Pradesh government is in advanced talks with public sector lender Bank of Baroda (BoB) to ease credit flow to the micro, small and medium enterprises (MSME) sector.

The state has also proposed floating venture capital fund(s) in a tie-up with BoB and other public sector entities, including Small Industries Development Bank of India (Sidbi), apart from non-banking financial institutions (NBFCs).

According to UP MSME and export promotion principal secretary Navneet Sehgal, the state would soon sign a memorandum of understanding (MoU) with BoB and some NBFCs to facilitate easy funding for the sector.

“We have asked the BoB to provide a