Summary: The Ubharte Sitaare Programme (USP), announced in Budget 2021, aims to support small and mid-sized companies in India with export challenges. Anchored by India Exim Bank and SIDBI, it launched the ‘Ubharte Sitaare Fund’ with a total corpus of INR 250 Crore. The fund provides financial and advisory support, including equity-linked instruments, term loans for technology and capacity upgrades, and technical assistance. Its objectives are to boost India’s competitiveness in global markets, help businesses scale up operations, encourage exporters to increase exports, and address the challenges that hinder export growth. The eligibility criteria include having a unique value proposition, an annual turnover of up to INR 500 Crore, strong financials, and a business model focusing on product quality. The scheme targets various sectors, including aerospace, automobiles, chemicals, food processing, defense, and pharmaceuticals.
For the very first time, during Budget 2021, Finance Minister, Smt. Nirmala Sitharam announced the Ubharte Sitaare Programme (i.e., USP). As per the announcement, the programme basically aims to eradicate the constraints faced by the small and mid-sized companies in realizing their export ambitions. The said programme will be anchored by India Exim Bank along with SIDBI. Acting further, an Alternative Investment Fund, launched ‘Ubharte Sitaare Fund’, was successfully registered with the Securities and Exchange Board of India (SEBI) in July 2021. Here, India Exim Bank and SIDBI have contributed INR 40 Crore each. The total corpus of the fund is INR 250 Crore.
Objective behind this scheme
1. To upgrade the position India’s competitiveness in selected sectors through finance and handholding support.
2. Those units who are unable to scale up the operation due to the lack of finance.
3. To motivate the existing exporters to increase the exports and target the new export market.
4. To identify and ease various challenges, which hinder the exports, which are faced by the successful companies.
Nature of assistance available under the Ubharte Sitaare Programme-
In this scheme there are various financial and advisory Benefits are provided mentioned herein below:
1. Equity Equity linked instruments.
2. Providing the Term loans for technology or capacity up-gradation;
3. Providing the Technical assistance.
Eligibility Criteria Under Ubharte Sitaare Programme:
The eligibility criteria of the programme are highlighted hereunder-
1. The company should have a unique value proposition in process, products or technology. Notably, the same should match the global requirements.
2. The company (small and mid-sized) should have the ability to enter global markets. Such a company should have an annual turnover of up to INR 500 Crore.
3. The company should be fundamentally strong. Further, it should have adequate financials as well as outward orientation.
1. The company should be having-
1. A good business model,
2. Strong management capabilities, and
3. Focus on the quality of a product.
2. Some of the suggestive sectors are-
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- Aerospace,
- Automobiles and auto components,
- Chemicals,
- Capital Goods,
- IT & ITeS,
- Food Processing,
- Defense,
- Pharmaceuticals,
- Machinery,
- Textiles, and
- Precision engineering.
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