Raising and Accelerating MSME Performance (RAMP) scheme

In December 2023, the Union Minister for Micro, Small & Medium Enterprises (MSME) launched 3 sub-schemes under the RAMP programme.

About RAMP Programme:

1. Launched in 2022.
2. RAMP is a World Bank-assisted Central Sector Scheme.
3. It aims to improve the performance of MSMEs in India.

Objectives:

1. Improving access to the market and credit for MSMEs.
2. Strengthening institutions and governance at the central and state levels.
3. Improving centre-state linkages and partnerships.
4. Addressing issues of delayed payments.
5. Making MSMEs environment-friendly.

Nodal Ministry: Ministry of Micro, Small and Medium Enterprises (MSME)

Budget Allocation:

1. The total outlay is Rs.6,062.45 crore or USD 808 Million.

1. A loan of Rs 3750 crore or 500 million US dollars will be taken from the World Bank.
2. The remaining Rs.2312.45 crore or USD 308 Million will be funded by the Government of India (GoI).

Components:

1. An important component of RAMP is the preparation of Strategic Investment Plans (SIPs), in which all states/UTs will be invited.
2. The overall monitoring and policy overview of RAMP would be done by an apex National MSME Council.

Implementation Strategy:

The disbursement of funds from the World Bank towards RAMP would be made on fulfilling the following Disbursement Linked Indicators:

1. Implementing the National MSME Reform Agenda.
2. Accelerating MSME Sector Centre-State collaboration.
3. Enhancing effectiveness of the Technology Upgradation Scheme (CLCS-TUS).
4. Strengthening the 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.

3 Sub schemes under RAMP:

1. MSME Green Investment and Financing for Transformation Scheme (MSE GIFT Scheme): It aims to help MSMEs adopt green technology with interest subvention and credit guarantee support.
2. MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE Scheme): The initiative aims to provide credit subsidies for circular economy projects, aiming to achieve zero emissions in the MSME sector by 2070.
3. MSE Scheme on Online Dispute Resolution for Delayed Payments: The initiative aims to integrate legal support with advanced IT tools and Artificial Intelligence to mitigate delayed payments for Micro and Small Enterprises.

Implementing agencies of the sub-schemes:

Small Industries Development Bank of India (SIDBI) for MSME GIFT and MSME SPICE schemes and National Informatics Centre Services Inc. (for NICSI) for MSE ODR scheme.

Benefits:

1. To address the generic and COVID-related challenges in the MSME sector.
2. Generate Employment.
3. The program aims to improve capacity building, skill development, quality enrichment, technological upgradation, digitization, outreach, and marketing promotion in areas that have been under-addressed.
4. RAMP will complement the Atma Nirbhar Bharat mission by promoting innovation and enhancement in industry standards, practices and provide the necessary technological inputs to the MSMEs to make them competitive and self-reliant, increase exports, substitute imports, and promote domestic manufacturing. 

Coverage:

1. All States/UTs will be invited to prepare SIPs and the proposals placed under SIPs will be funded based on the appraisals.
2. The funding would be based on objective selection criteria and the SIPs would be appraised and approved through a rigorous process set up in MoMSME.