Cabinet approves USD 808 million for “Raising and Accelerating MSME Performance”

What is the News?

The Union Cabinet has approved the “Raising and Accelerating MSME Performance” (RAMP) Programme.

What is the Raising and Accelerating MSME Performance(RAMP) Programme?

Nodal Ministry:  Ministry of Micro, Small and Medium Enterprises(MSME)

Type: Central Sector Scheme

Funding: It is a World Bank assisted programme

Committees: The RAMP programme was formulated based on the recommendations made by U K Sinha Committee, KV Kamath Committee and Economic Advisory Council to the Prime Minister (PM-EAC).

Aim: To provide support to the MSMEs by improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening MSMEs.

Key Features of RAMP Programme

Result Areas: The programme will focus on two result areas: 1) Strengthening Institutions and Governance of the MSME Program and 2) Supporting Market Access, Firm Capabilities and Access to Finance.

Disbursement Linked Indicators(DLI): The disbursement of funds from the World Bank towards RAMP would be made on fulfilling several indicators such as accelerating MSME Sector centre-state collaboration; reducing the incidence of delayed payments, enhancing the effectiveness of MSME Schemes among others.

Strategic Investment Plans(SIPs): The important component of RAMP is the preparation of SIPs. The SIPs would include an outreach plan for identification and mobilization of MSMEs, identify key constraints and gaps, set milestones and project the required budgets for interventions in priority sectors including renewable energy, rural & non-farm business, wholesale and retail trade etc.

Monitoring of the programme: It would be done by an apex National MSME Council headed by the Minister for MSME, including representation from various Ministries and supported by a secretariat.

What is the expected impact of the RAMP Programme?

Policy Provider: It will address the COVID related challenges in the MSME sector by way of impact enhancement of existing MSME schemes, especially on the competitiveness front. 

Job Enabler: The programme through enhanced collaboration with States will be a job enabler, market promoter, finance facilitator and will support vulnerable sections.

Technology Provider: It will provide access to high-end technology resulting in the digital and technological transformation of MSMEs through state-of-the-art Artificial Intelligence, Data Analytics, Internet of things(IoT) and Machine Learning.

Source: This post is based on the article “Cabinet approves USD 808 million for “Raising and Accelerating MSME Performance” published in PIB on 30th March 2022.