After just 3 days from announcement of RoDTEP scheme for exporters, Finance Minister Launched “Ubharte Sitaare Fund” on 21 August 2021. Union Finance Minister Nirmala Sitharaman on Saturday, addressing the launch of the ‘Ubharte Sitaare Fund’ said the micro, small and medium enterprises (MSMEs) are the backbone of the economy, and that the government has given the sector its rightful place.
This scheme was announced in budget for FY 2021 but because of the pandemic, implementation got delayed. For Ubharte Sitaare, largely the same principle is being followed as it is implemented in some developed countries like Germany.
The Ubharte Sitaare Programme (USP) identifies Indian companies that are future champions with good export potential. An identified company should have potential advantages by way of technology, product or process. It can be supported even if it is currently underperforming or may be unable to tap its latent potential to grow. The Programme diagnoses such challenges and provides support through a mix of structured support covering equity, debt and technical assistance.
Objectives of the Programme
a) To enhance India’s competitiveness in select sectors through finance and extensive handholding support;
b) To identify and nurture companies having differentiated technology, products or processes, and enhance their export business;
c) To assist units with export potential, which are unable to scale up their operations for want of finance;
d) To identify and mitigate challenges faced by successful companies which hinder their exports;
e) To assist existing exporters in widening their basket of products and target new markets through a strategic and structured export market development initiative.
Nature of assistance
The Bank can support eligible companies by both financial and advisory services through:
a) Support by way of equity / equity-like instruments.
b) Debt (funded / non-funded): Term loans for modernisation, technology / capacity upgradation, R&D and balancing of production facilities by investment in activities such as:
-
- Machinery and equipment;
- Tools, jigs and fixtures;
- Testing / quality control equipment;
- Land and building.
c) Technical Assistance (TA) for product adaptation and improvement, cost of certifications, training expenses, market development activities including overseas travel for product/market development, studies relating to sectors, markets, regulations, Techno Economic Viability (TEV) study, etc.
Eligibility
a) Companies with unique value proposition in technology, products or processes that match global requirements.
b) Fundamentally strong companies with acceptable financials, and outward orientation.
c) Small and mid-sized companies with ability to penetrate global markets, with an annual turnover of up to approx. INR 500 crore.
d) Companies with a good business model, strong management capabilities, and focus on product quality.
e) Indicative Sectors: Automobiles and Auto components, Aerospace, Capital Goods, Chemicals, Defence, Food Processing, IT & ITeS, Machinery, Pharmaceuticals, Precision engineering, Textiles and allied sectors.
We shall keep you posted on the scheme as and when document is available in public domain.
Source- https://www.eximbankindia.in/ubharte-sitaare
Author Bio
