With an aim to aid small enterprises and to boost funding for start-ups in the country, the Union Finance Minister Arun Jaitley launched two funds – the India Aspiration Fund (IAF) and SIDBI Make in India Loan for Enterprises (SMILE) under Small Industries Development Bank of India (SIDBI).
About the Funds:
India Aspiration Fund (IAF):
- Under this fund, SIDBI would invest in venture capital funds for meeting the equity requirement of MSME start-ups in the country.
- The initial corpus of 2,000 crore has been set for this fund.
- Life Insurance Corp. of India (LIC) will be a partner and co-investor in this fund.
SIDBI Make in India Loan for Enterprises (SMILE) Fund :
- This is a debt-fund which will carter soft term loans to MSMEs to meet debt-to-equity norms and pursue growth opportunities.
- The Initial corpus of 10, 000 crore has been set under SMILE fund.
- These funds under SIDBI to boost MSME and start-ups under Make in India initiative and expects to create employment for over one lakh person for four to five years.
- The ministry also intends to move people from overstaffed agriculture sector to areas such as services and manufacturing through MSMEs and start-ups which fund their own business and creates employment.
Important Points to Remember:
- SIDBI CEO: Kshatrapati Shivaji
- SIDBI Headquarter: Lucknow