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INTRODUCTION
The Government of India set up the SIDBI under a special Act of the Parliament in October 1989. SIDBI commenced its operations from April 2, 1990 with its head office in Lucknow. SIDBI has been setup as a wholly owned subsidiary of IDBI. Its authorized capital is Rs.250 crore with an enabling provision to increase it to Rs.1000 crore.
It is the apex institution which oversees, co-ordinates & further strengthens various arrangements for providing financial and non-financial assistance to small-scale, tiny, and cottage industries.
Mission:
Vision:
financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate values through modern technology platform
AIM
Expansion of small scale sector and increase its share in industrial output. Development of rural areas where more than 70% of the population resides. Increase the efficiency of SSIs. Increase the contribution of SSIs in export. More employment generation in rural areas of rural India.
PURPOSE
TO PROVIDE FACTORING SERVICE TO THE MANUFACTURERS IN SSI SECTOR SUPPLYING THEIR PRODUCTS ON CREDIT TERMS TO VARIOUS PURCHASERS IN THE DOMESTIC MARKET WITH A VIEW TO ASSISTING THEM IN THEIR RECEIVABLE MANAGEMENT AS ALSO PROVIDING THEM WITH FINANCE AGAINST THE RECEIVABLES FACTORED.
OBJECTIVES
MANAGEMENT
Shri R.M.Malla: Chairman and Managing Director Shri Rakesh Rewari: Deputy Managing Director Shri Madhav Lal: Additional Secretary & DC (MSME), Ministry of MSME, Government of India Smt. Ravneet Kaur: Joint Secretary, Department of Financial Services, Ministry of Finance, Government of India Shri Janki Ballabh: Former Chairman, State Bank of India
MANAGEMENT
Shri M. Balachandran: Former Chairman & Managing Director, Bank of India Shri S.K. Tuteja: Former Secretary, Government of India Shri T. R. Bajalia: Executive Director, IDBI Bank Ltd. Shri B. Manivannan: Executive Director (IT-BPR) Life Insurance Corporation of India
DIRECT FINANCE
Since its beginning, SIDBI had been providing refinance to State Level Finance Corporations / State Industrial Development Corporations / Banks etc., against their loans granted to small scale units.
REFINANCE SCHEMES
Refinance scheme is introduced for catering to the need of funds of Primary Lending Institutes {PLI} for financing small scale sector. Under the scheme, SIDBI grants refinance against term loans granted by the eligible PLIs to industrial concerns for setting up industrial projects in the small scale sector as also for their expansion / modernization / diversification. PLIs are SIDC, SFC. Banks like commercial banks, Cooperative Banks, Regional Rural Banks
Schemes of re-finance assistence: Scheme for SC-ST & physically handicraft persons Composite loan scheme Equipment refinance schemes. Schemes for small road transport operators. Special assistance to ex-servicemen.
Time period
10, 2009
Interest (% p.a.)
12 months - 13 months
14 months - 36 months 14 months - 36 months
6.50
7.00 7.50
The equity capital loan to the extent of 2.5lakh is sanctioned to each project provided the prefect qualities under this scheme.
Hence, SIDBI introduced seed money scheme for the benefit of entrepreneurs. Seed money is available through DIC { Direct Industry Centre } to those entrepreneur who are technically qualified but lack of own capital.
CONCLUSION
In conclusion we can say that the SIDBI, by the mode of refinancing, discounting and rediscounting as well as financial assistance through indirect functions regarding lending to primary institutions, through its direct assistance to small units and through its various developmental and supporting services, encouraging small scale sector in Rural India.
Than Q
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