Prime Minister Narendra Modi chaired The Union Cabinet that approved a USD 808 million or Rs 6,062.45 crore, World Bank assisted programme on “Raising and Accelerating MSME Performance” (RAMP).
RAMP is a new scheme and would commence in FY 2022-23.
The total cost for the plan is Rs.6,062.45 crore or USD 808 Million, out of which the world bank would give Rs.3750 crore or USD 500 Million as a loan and the rest Rs.2312.45 crore or USD 308 Million would be financed by the Government of India (GoI).
The Ministry of Micro, Small and Medium Enterprises (MoMSME) launched the “Raising and Accelerating MSME Performance” (RAMP) Project, an initiative supported by the World Bank, to recover from the Corona Virus Disease 2019 (COVID).
The program aims to improve access to markets and credit, institutionalize good governance at the federal and state levels, expand the linkages and partnerships between the federal and state governments, and make MSMEs greener.
The RAMP program will not only build the capacity of the MoMSME at the national level but scale up MSME coverage at the state level as well. Major Impact including employment generation potential and no. of beneficiaries:
Through impact enhancements of existing MSME schemes, especially on the competitiveness front, the RAMP programme will draw attention to both generic and COVID-related challenges in the MSME sector. In addition, the program will address the underdeveloped dimensions of capacity building, handholding, skill development, quality enhancement, technological development, digitization, outreach, and marketing promotion, among others.
By enhancing the collaboration with states, RAMP will help to create jobs, promote market development and facilitate finance activities, in addition to supporting vulnerable sections and greening initiatives.
Due to the greater impact of RAMP schemes in states where the presence of MSMEs is low, the program will result in a greater formalization of the economy. Developing these SIPs by these States would act as a roadmap toward the improvement of the MSME sector.
By fostering the enhancement of industry standards and practices through RAMP, it will complement the Atma Nirbhar Bharat mission by making small and medium enterprises more competitive, self-reliant, capable of substituting imported goods, and capable of promoting domestic manufacturing.
Following the preliminary missions and studies, the program has identified two outcomes: (1) Strengthening Institutions and Governance of the MSME Program, and (2) Support to Market Access, Firm Capabilities and Access to Finance.
RAMP will transfer funds through its Disbursement Linked Indicators (DLIs) to the Ministry of Small and Medium Businesses (MOSME) to help support ongoing programs to improve market access and competitiveness.
Upon meeting the following Disbursement Linked Indicators, World Bank funds would be disbursed to RAMP:
1. Implementing the National MSME Reform Agenda
2. Accelerating MSME Sector Centre-State collaboration
3. Enhancing effectiveness of Technology Upgradation Scheme (CLCS-TUS)
4. Strengthening Receivable Financing Market for MSMEs
5. Enhancing Effectiveness of Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) and “Greening and Gender” delivery
6. Reducing the incidence of delayed payments
In preparation of Strategic Investment Plans (SIPs) all states/UTs will be invited.
