Ubharte Sitaare’ Alternative Investment Fund

In news- The Union Finance Minister launched the Ubharte Sitaare Fund recently.

About Ubharte Sitaare Fund-

The fund has been set up by Exim Bank and SIDBI.
The Ubharte Sitaare Programme (USP) identifies Indian companies that are future champions with good export potential.
An identified company should have potential advantages by way of technology, product or process.
It can be supported even if it is currently underperforming or may be unable to tap its latent potential to grow.
The Programme diagnoses such challenges and provides support through a mix of structured support covering equity, debt and technical assistance.
This alternative investment fund is aimed at providing debt and equity funding to export-oriented MSMEs as well as providing them with the required technological support to make their businesses more competitive.
It has a corpus of Rs 250 crore.
The fund is a mix of structured support, both financial and advisory services through investments in equity or equity like instruments, debt (funded and non-funded) and technical assistance (advisory services, grants and soft loans) to the Indian companies.

Objectives of the Ubharte Sitaare Programme-

To enhance India’s competitiveness in select sectors through finance and extensive handholding support.
To identify and nurture companies having differentiated technology, products or processes, and enhance their export business.
To assist units with export potential, which are unable to scale up their operations for want of finance.
To identify and mitigate challenges faced by successful companies which hinder their exports.
To assist existing exporters in widening their basket of products and target new markets through a strategic and structured export market development initiative.

Export-Import Bank of India (EXIM Bank)-

The Export-Import Bank of India (Exim Bank) is a public sector financial institution created by an Act of Parliament, the Export-import Bank of India Act, 1981.
Finally set up in 1982.
The business of Exim Bank is to finance Indian exports that lead to continuity of foreign exchange for India.
The Exim Bank extends term loans for foreign trade.
The operations of the Bank are governed by a Board of Directors, consisting of a chairman, a managing director, two deputy managing directors; one director each nominated by the Reserve Bank of India; IDBI Bank Ltd. and ECGC Ltd.

Not more than 12 directors nominated by the Central Government of, whom 5 directors are Central Government officials; not more than 3 directors are from commercial banks; and up to 4 directors are professionals with experience in export / import or financing.

Small Industries Development Bank of India (SIDBI)-

SIDBI was set up under an Act of Parliament in 1990.
Though it was a wholly owned subsidiary of Industrial Development Bank of India, presently the ownership is held by 33 Government of India owned / controlled institutions.
It is headquartered in Lucknow.

Functions:

To initiate steps for technological up gradation and modernization of existing units.
To expand the channels for marketing the products of SSI sector in domestic and international markets.
To promote employment oriented industries especially in semi-urban areas to create more employment opportunities and thereby checking migration of people to urban areas.