Finance Minister Arun Jaitley Thursday announced measures for the development of micro, small and medium enterprises (MSMEs), while allocating a sum of Rs.10,000 crore for start-up companies in his maiden budget presented to parliament.
"In order to create a conducive eco-system for the venture capital in the MSME sector, it is proposed to establish a Rs.10,000 crore fund to act as a catalyst to attract private capital by way of providing equity, quasi equity, soft loans and other risk capital for start-up companies," Jaitley said.
He also said a committee of the ministries of finance and micro, small and medium enterprises and the Rserve Bank of India will be set up to give concrete suggestions on the revival and the financial architecture of MSMEs.
Jaitley said the definition of MSME would be revised in terms of raising its capital ceiling.
Other measures announced in the budget that have a bearing on the MSMEs are a provision of Rs.100 crore for Start-up Village entrepreneurship for the rural population, and Rs.200 crore for scheduled castes entrepreneurs.
