FM launches Ubharte Sitaare fund to support India’s future export champions
The Honorable Minister of Finance of India, Smt. Nirmala Sitharaman on Saturday August 21, 2021 launched the Ubharte Sitaare Fund in Lucknow in the presence of Shri Siddharth Nath Singh Hon’ble Minister of MSMEs and Export Promotion, Government of Uttar Pradesh and Shri Pankaj Jain, Additional Secretary, Department of Finance Services, Ministry of Finance, Government of India.
The Honorable Minister of Finance, in his budget speech last year, announced the Ubharte Sitaare (USP) program which will be anchored by India Exim Bank with SIDBI, against the backdrop of constraints faced by small and medium enterprises in achieving their export ambitions. The program identifies Indian companies that have the potential to be future champions on the national stage, while meeting global demands. The identified Indian companies supported under the program have a latent advantage in terms of technology, product or process. The Program diagnoses the obstacles and constraints of the companies identified and supports them in their growth and export strategies through a mix of structured support that covers both financial and advisory services in the form of equity, debt and technical assistance.
As part of the program, an alternative investment fund, dubbed ‘Ubharte Sitaare Fund’, co-sponsored by India Exim Bank and SIDBI with a contribution of ₹ 40 crore each was successfully registered with SEBI in July 2021. The Fund corpus is ₹ 250 crore with a green shoe option of ₹ 250 crore. The Fund would invest in the form of stocks and similar products in export-oriented units, both in the manufacturing and service sectors, across the country and help rising stars in the export market to reach higher heights.
The objective of the USF is to identify and invest in small and medium-sized companies in the manufacturing and service industries with good export potential which could be future export champions and support them. throughout the growth phase.
Speaking on the occasion, the Honorable Minister of Finance, Ms. Nirmala Sitharaman highlighted the efforts of the government to boost the MSME sector in the country, including the launch of the production-linked incentive program. She noted that the government also announced the AatmaNirbhar Bharat initiative at the start of the COVID-19 pandemic, which enables Indian businesses to become internationally competitive and facilitate greater self-reliance in India. She noted that USF would invest in export-oriented small and medium-sized enterprises through equities and similar products, and thereby help shape a new paradigm for export growth. The initiative would play a catalytic role in contributing to the growth of the identified companies and would also have downstream benefits such as growth and diversification of Indian exports, boost to the India brand and job creation.
During the event, Smt. Harsha Bangari, Deputy Managing Director, India Exim Bank, highlighted the Bank’s efforts, amid the Covid pandemic, to develop and strengthen partnerships with leading universities, chambers of commerce, industry organizations, between others, while operationalizing the USP. Smt. Bangari added that India Exim Bank has developed a strong pipeline of over 100 potential proposals and supported several companies across a wide range of sectors. Some of these companies were featured at the event, including a manufacturer of key ingredients for Covid vaccines and black fungus medicine and a company promoting environmental sustainability in recycling and manufacturing key inputs for them. FMCG packaging.
Speaking on the occasion, SIDBI President and CEO Shri Sivasubramanian Ramann highlighted several initiatives that have been taken in the recent past for the benefit of MSMEs in the country, more so in the state of Uttar Pradesh . He reiterated that SIDBI is committed to facilitating the overall growth of MSMEs in the country through the Credit-plus approach.
The event physically and virtually brought together participants from Indian industry and academia from across the country.