Assam Government Signs MoU With CGTMSE, SIDBI; To Facilitate Rapid Industrialization & Revamp MSME Sector 

Posted in Assam, Featured, Northeast


  • NET Web Desk

In an effort to facilitate rapid industrialization & revamp the Micro, Small & Medium Enterprises (MSME) sector; the Assam Government today inked two Memorandum of Understandings (MoUs) with CGTMSE for Assam Credit Guarantee Scheme & SIDBI Venture Capital for Assam Startup Venture Capital Fund.

Signed at an MSME conclave, the Assam Chief Minister – Himanta Biswa Sarma asserted that the partnership with CGTMSE is intended to offer additional guarantee coverage for the loans given by lending institutions to the MSMEs in Assam.

Under this scheme, atleast 80% of the guarantee coverage of loan would be provided by CGTMSE while the remaining 20 percent coverage would be funded by the state administration.

Referring to SIDBI’s estimate, a corpus support of Rs 100 crore will lead to a portfolio creation of Rs 5000 crore and the yearly fund requirement from the state government would be around Rs 22 crore to Rs 26 crore in the next three years.

Meanwhile, the CM asserted that another MoU signed with SIDBI Venture Capital Fund (SVCL) intends to work as an investment manager for the proposed Assam Start-up Venture Capital Fund.

Referring the signing of this agreement as ‘red letter day’, Sarma added that “the MoUs are expected to facilitate rapid industrialization and revamp the MSME sector”. SVCL shall also establish the Assam Start up Venture Fund with a total corpus of Rs 200 crore.

The CM has also appealed the young entrepreneurs to boost their efforts to develop a robust MSME ecosystem in Assam.

During the event, the Assam Government also launched the A’ssam Logistics and Ware Housing Policy 2022′ – an initiative to transform Assam into a regional logistics hub.

Taking to Twitter, Sarma wrote “Glad to share that GoA today signed 2 MoUs with – CGTMSE for Assam Credit Guarantee Scheme & SIDBI Venture Capital for Assam Startup Venture Fund. This is a red letter day for Assam as the MoUs are expected to facilitate rapid industrialisation and revamp our MSME sector.”

“Size of SIDBI Venture Capital Fund is ₹200 cr. GoA will contribute ₹100 cr, SIDBI ₹50 cr & other contributors will bear the rest ₹50 cr. We also ceremoniously launched the Assam Logistics and Ware Housing Policy 2022, an initiative for making Assam a regional logistics hub.” – he further added.

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