Union Finance Minister Nirmala Sitharaman has launched Ubharte Sitaare Fund (USF) of Corpus INR 250 crore with a green shoe option of INR 250 crore for Export oriented Small & mid sized companies across the country.
- USF is jointly funded by Export and Import (EXIM) Bank of India & Small Industries Development Bank of India (SIDBI)
- It is an Alternative Investment Fund (AIF) with a contribution of INR 40 crore each by EXIM Bank & SIDBI has been registered with Securities and Exchange Board of India (SEBI) in July 2021.
Ubharte Sitaare Fund (USF)
i.Objective: To identify and Invest in small and mid-sized companies in the Manufacturing and Services sector with good Export potential that could be future champions of export & handhold them through the growth phase.
ii.Sitharaman has announced about the fund in her Budget speech 2020 in the backdrop of the constraints faced by small & mid-sized companies in realizing their Export ambitions.
iii.The Fund will invest by way of equity, and equity like products in export-oriented units, both in the manufacturing and services sectors, across the country
iv.The identified companies will be assisted in their Growth & Export strategies through a mix of structured support that includes both financial and advisory services in the form of equity, debt & technical assistance.
Points to be noted :-
During the same event, Punjab National Bank had sanctioned a loan of Rs 5,100 crore for implementation of the Ganga Expressway, a 594 km long, 6-lane wide (expandable to 8) greenfield expressway project to the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA).The total cost of the project is nearly Rs 36,000 crore and will pass through 12 districts in UP.
Recent Related News
In August 2021, the Government of India (GoI) announced the rates & guidelines for Remission of Duties & Taxes on Exported Products (RoDTEP) Scheme to boost India’s Exports & boost liquidity for Exporters.
About Small Industries Development Bank of India SIDBI
Establishment – April 1990.
Chairman & Managing Director – Sivasubramanian Ramann
Headquarters– Lucknow, Uttar Pradesh
About Export and Import (EXIM) Bank of India
Establishment – 1982
Deputy Managing Director – Harsha Bangari, N.Ramesh
Headquarters – Mumbai, Maharashtra
Regulated by Reserve Bank of India
