New Delhi, Mar 21 (KNN) The implementation of the government’s Self-Reliant India Fund (SRI Fund) has shown limited progress across most states over the past five years, with only a handful of MSMEs benefitting in the majority of states and Union Territories.
Karnataka, however, has emerged as the frontrunner with 151 investee companies, the highest in the country, according to information shared in the Lok Sabha by Minister of State for Micro, Small, and Medium Enterprises, Shobha Karandlaje, on Thursday.
Maharashtra follows closely as the second-highest performer with 144 investee MSMEs, while most other states have yet to reach double digits. Nationwide, a total of 577 companies have received support from the fund since its establishment, as reported on February 28, 2025.
The SRI Fund was established as part of the Atmanirbhar Bharat package announced in 2020, which included a Rs 50,000 crore equity infusion for MSMEs through a Fund of Funds approach.
The funding structure comprises Rs 10,000 crore from the central government and Rs 40,000 crore from private equity and venture capital funds. According to Karandlaje, the initiative targets MSMEs that demonstrate potential and viability for growth into larger enterprises.
The central sector fund has empanelled 60 daughter funds, including prominent financial institutions such as Tata Capital, IDBI Capital, SIDBI Venture, and ICICI Venture. The written reply indicated that “By way of investing of Rs 10,979 crore, 577 MSMEs have been assisted.”
Karandlaje further stated that “Under SRI Fund, Rs 1,722 crore has been allocated and released by the central government to NSIC Venture Capital Fund Limited (NVCFL) and an amount of Rs 1,641.90 crore has been utilised.”
NVCFL, a wholly-owned subsidiary of National Small Industries Corporation (NSIC), functions as the mother fund for the initiative.
The operational model requires the SRI Fund to invest in SEBI-registered Category I and Category II Alternative Investment Funds (daughter funds), which subsequently invest in MSMEs.
These daughter funds are mandated to invest at least five times the capital contribution received from the SRI Fund (net of fees and expenses) in MSMEs, as defined under the MSMED Act.
(KNN Bureau)
