In two major decisions to give a boost to the economy, the Union Cabinet on Wednesday approved $808 million (Rs 6,062.45 crore) World Bank assisted programme for raising the performance of Micro, Small and Medium Enterprises (MSMEs) and gave its nod to amendments in the mega power policy to give time extension (36 months) to ten mega certified projects for furnishing the final certificates to the tax authorities.

The decisions were taken in a meeting of the Union Cabinet, chaired by Prime Minister Narendra Modi.

The Cabinet Committee on Economic Affairs approved the time extension (36 months) to identify 10 Provisional Mega certified projects for furnishing the final Mega Certificates to the Tax authorities.

Extension of the time period for furnishing the final mega certificate will enable developers to competitively bid for future PPAs and get tax exemptions as per Policy terms. The increased liquidity will boost the overall growth of the country and also ensure the revival of various stressed power assets.

The time period for the 10 Provisional Megaprojects which are commissioned or partly commissioned for furnishing the final mega certificates to the Tax authorities has been extended to 156 months instead of 120 months.

During this extended period, bids for firm power (combination of intermittent renewable energy, storage and conventional power) will be invited in co-ordination with the Ministry of New & Renewable Energy (MNRE) and Solar Energy Corporation of India Limited (SECI) and these Mega projects will be expected to participate in such bids to secure PPAs.

Ministry of Power will also develop an alternative in this period, based on present electricity markets while ensuring that benefits are passed onto consumers in a competitive manner.

The Union Cabinet approved $808 million or Rs 6,062.45 crore World Bank assisted programme on “Raising and Accelerating MSME Performance” (RAMP).

RAMP is a new scheme and would commence in FY 2022-23.

The total outlay for the scheme is Rs 6,062.45 crore or $808 Million, out of which Rs 3750 crore or $500 Million would be a loan from the World Bank and the remaining Rs 2312.45 crore or USD 308 Million would be funded by the Government of India (GoI).

RAMP is a World Bank assisted Central Sector Scheme, supporting various Corona Virus Disease Resilience and Recovery Interventions of the Ministry of ‘Micro, Small and Medium Enterprises (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 MSMEs.

In addition to building the Ministry’s capacity at the national level, the RAMP programme will seek to scale up implementation capacity and MSME coverage in States.