Union Minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari has said that the government will soon approve a fund of Rs. 10,000 crore for MSMEs with high credit rating.

"We are releasing Rs. 10,000 crore 'Fund of Funds' for the good units of SMEs which export and have a good turnover in banks", he said while addressing the participants at a Webinar organized by the Young President's Organization (YPO).

Gadkari further informed that the proposal of Rs. 10000 crore 'Fund of Funds' has been cleared by the central govt and soon will be sent to Union Cabinet for final approval.

MSMEs with good track record in the GST system, export potential and AAA ratings to raise funds from the stock market. AAA rating implies high creditworthiness. Up to 15 percent of the amount a AAA-rated MSME raises from the capital market will be contributed by the government through the fund as equity.

As an example, "If you raise 50 Crores, the government will put in 15 percent", said Gadkari.

The government is likely to revise its definition of what constitutes small and medium enterprises (SMEs) soon.

"The decision, on whether and to what extent the definition of SMEs would be expanded to include companies with high turnover, should happen in a few days", said the minister.