RAMP scheme- Raising and Accelerating MSME Performance (RAMP) scheme

Context:

Recently, the Union Cabinet approved the “Raising and Accelerating MSME Performance” (RAMP) scheme which would commence in FY 2022-23.

*World Bank Assisted

* Central Sector Scheme

* Recommendations by U K Sinha committee KV Kamath Committee and Economic Advisory Council to the Prime Minister (PMEAC)

What is RAMP scheme?

• “Raising and Accelerating MSME Performance” (RAMP) is a World Bank assisted Central Sector Scheme, supporting various Corona Virus Disease 2019 Resilience and Recovery Interventions of the Ministry of MSME.
• The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs.
• Commencement:  
• It is a new scheme and will commence in Financial Year 2022-23. Around 500 million dollars will be a loan from the World Bank and the remaining 308 million dollars would be funded by the Government of India.

RAMP was formulated and proposed by the Government of India, for strengthening MSMEs in line with the recommendations made by U K Sinha Committee, KV Kamath Committee and Economic Advisory Council to the Prime Minister (PMEAC).

Objective:

• The programme aims at improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs.

RAMP will function as a:

1. ‘’Policy Provider’’ through the enhanced capacity for evidence-based policy and program design, to enable the delivery of more effective and cost-efficient MSME interventions to improve competitiveness and business sustainability.
2. “Knowledge Provider” through bench-marking, sharing and demonstrating best practices/success stories by leveraging international experiences.
3. “Technology Provider” by providing access to high-end technology resulting in the digital and technological transformation of MSMEs through state of art Artificial Intelligence, Data Analytics, Internet of things (IoT), Machine Learning etc.

Assistance:

• RAMP is a World Bank assisted Central Sector Scheme, supporting various COVID Resilience and Recovery Interventions of the Ministry of Micro, Small and Medium Enterprises.

Important component:

• It is preparation of Strategic Investment Plans (SIPs), in which all states/UTs will be invited.
• The SIPs would include an outreach plan for identification and mobilisation of MSMEs under RAMP, identify key constraints and gaps, set milestones and project the required budgets for interventions in priority sectors including renewable energy, rural & non-farm business, wholesale and retail trade, village and cottage industries, women enterprises etc.
• The overall monitoring and policy overview of RAMP would be done by an apex National MSME Council, headed by the Minister for MSME, including representation from various Ministries and supported by a secretariat. 

Aims: 

• It aims at improving access to market and credit, strengthening institutions and governance at the Centre and State, improving Centre-State linkages and partnerships, addressing issues of delayed payments and greening of MSMEs.
• It will also seek to scale up implementation capacity and MSME coverage in  States. 

Implementation Strategy and Targets:

• The programme has identified two results areas after the preliminary missions and studies viz: 
  •  Strengthening Institutions and Governance of the MSME Program.
  • Support to Market Access, Firm Capabilities and Access to Finance.

Flow of Funding: 

• Funds would flow through RAMP into the Ministry’s budget against Disbursement Linked Indicators (DLIs) to support ongoing MoMSME programmes, focusing on improving market access and competitiveness.
• The disbursement of funds from World Bank towards RAMP would be made on fulfilling the following Disbursement Linked Indicators: 
  • Implementing the National MSME Reform Agenda
  • Accelerating MSME Sector Centre-State collaboration
  • Enhancing effectiveness of Technology Upgradation Scheme (CLCS-TUS)
  • Strengthening Receivable Financing Market for MSMEs
  • Enhancing Effectiveness of Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) and “Greening and Gender” delivery
  • Reducing the incidence of delayed payments 

States/Districts covered:

• All States/UTs will be invited to prepare SIPs and the proposals placed under SIPs will be funded based on their appraisals.
• 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.

Major Impact including employment generation potential and no. of beneficiaries:

• It will address the generic and COVID related challenges in the MSME sector by way of impact enhancement of existing MSME schemes, especially, on the competitiveness front. 
• It will bolster the inadequately addressed blocks of capacity building, handholding, skill development, quality enrichment, technological upgradation, digitization, outreach and marketing promotion, amongst other things.
• RAMP programme, through enhanced collaboration with States, will be a job-enabler, market promoter, finance facilitator, and will support vulnerable sections and greening initiatives.
• RAMP will complement the Atma Nirbhar Bharat mission by fostering innovation and enhancement in industry standards, practices and providing the necessary technological inputs to the MSMEs to make them competitive and self-reliant, enhancing exports, substituting imports, and promoting domestic manufacturing.
• RAMP programme with impacts across the country will directly or indirectly benefit all 63 million enterprises that qualify as MSMEs
  • However, a total of 5,55,000 MSMEs are specifically targeted for enhanced performance and, in addition, expansion of target market to include service sectors and increase of about 70,500 women MSMEs is envisaged.

Related Schemes:

• MSME Innovative Scheme
• Prime Minister’s Employment Generation programme (PMEGP)
• Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
• A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)
• Interest Subvention Scheme for Incremental Credit to MSMEs
• Credit Guarantee Scheme for Micro and Small Enterprises
• CHAMPIONS portal

Source: PIB

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