 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.

employment generation and balanced regional development” “To emerge as a single window for meeting the “To empower the Micro.holder wealth and highest corporate values through modern technology platform” . Small and Medium Mission: Vision: financial and developmental needs of the MSME sector to make it strong. to position SIDBI Brand as the preferred and customer .friendly institution and for enhancement of share . vibrant and globally competitive.MISSION & VISION Enterprises (MSME) sector with a view to contributing to the process of economic growth.

• Development of rural areas where more than 70% of the population resides. • Increase the contribution of SSIs in export. .AIM • Expansion of small scale sector and increase its share in industrial output. • Increase the efficiency of SSIs. • More employment generation in rural areas of rural India.


OBJECTIVES Financing Promotion Development Co-ordination .

Ministry of MSME.MANAGEMENT • Shri R.Malla: Chairman and Managing Director • Shri Rakesh Rewari: Deputy Managing Director • Shri Madhav Lal: Additional Secretary & DC (MSME). Department of Financial Services. Government of India • Shri Janki Ballabh: Former Chairman. Government of India • Smt.M. State Bank of India . Ravneet Kaur: Joint Secretary. Ministry of Finance.

• Shri B. IDBI Bank Ltd. Bajalia: Executive Director. Government of India • Shri T.MANAGEMENT • Shri M. Tuteja: Former Secretary. R. Bank of India • Shri S.K. Balachandran: Former Chairman & Managing Director. Manivannan: Executive Director (IT-BPR) Life Insurance Corporation of India .

PRODUCTS & SERVICES • • • • • • • • • • Direct finance. Bills finance Refinance International finance Promotional & Development activities. Fixed deposit scheme Technology Upgradation & Modernization Fund Scheme {TDMF} Venture Capital Fund Scheme Seed Money Schemes National Equity Fund Scheme .

against their loans granted to small scale units. . Scheme for specialized marketing agencies. SIDBI had been providing refinance to State Level Finance Corporations / State Industrial Development Corporations / Banks etc. Scheme for ancilaring / subcontract units. Scheme for existing Export Oriented Units(EOUs) to enable them to acquire ISO 9000 series certification.DIRECT FINANCE Since its beginning.. SIDBI’s direct finance schemes are: • • • • Scheme for expansion / diversification of small scale units.

. one of the parties to the transactions to the scheme has to be an industrial unit in the small-scale sector within the meaning of Section 2(h) of the SIDBI Act. To be eligible under the various bills schemes. based on compliance to the various eligibility criteria. to manufacturers of indigenous machinery.BILLS FINANCE SCHEMES Bills Finance Scheme involves provision of medium and short-term finance for the benefit of the small-scale sector. 1989. Bills Finance seeks to provide finance. norms etc as applicable to the respective schemes. capital equipment. components subassemblies etc.

Regional Rural Banks . PLIs are SIDC. Cooperative Banks. 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. Banks like commercial banks. Under the scheme.REFINANCE SCHEMES Refinance scheme is introduced for catering to the need of funds of Primary Lending Institutes {PLI} for financing small scale sector. SFC.

• Schemes for small road transport operators. . • Special assistance to ex-servicemen.Schemes of re-finance assistence: • Scheme for SC-ST & physically handicraft persons • Composite loan scheme • Equipment refinance schemes.

Assistance in Rupees is also provided to the needy borrowers.INTERNATIONAL FINANCE SCHEMES • The main objective of the various International Finance schemes is to enable small-scale industries to raise finance at internationally competitive rates to fulfill their export commitments. • The international finance is available from pre-shipment & post shipment credit. depending on the normal trade terms and credit period given to overseas buyers by exporters not exceeding 180 days. • Need based limit. . • The financial assistance is being offered in US Dollars and Euro currencies.

) 12 months .00 7.0 7.13 months 14 months .50 7.36 months 14 months .5 8.a.0 .36 months 6.f August 10.a.e.FIXED DEPOSIT SCHEME THE INTEREST RATE STRUCTURE FOR SIDBI FIXED DEPOSIT SCHEME OF SIDBI ARE AS UNDER: Time period Revised Annual Interest Rate %p.50 7. 2009 For Senior Citizens Interest (% p. * w.

financing and development of industry in the small scale sector. • Technology Upgradation Programmes. .PROMOTIONAL AND DEVELOPMENT ACTIVITIES As an apex financial institution for promotion. The activities are as follows: • Entrepreneurship Development Programmes. SIDBI meets the varied developmental needs of the Indian SSI sector by its wide-ranging Promotional and Developmental (P&D) activities. • Management Development Programmes.

• The sanction of funds is made depending upon the estimate submitted. • It was setup for the purpose of encouraging the existing small scale industrial units to modernize production facilities and adopt improved and updated technology for strengthening export capabilities. • For availing benefits under this scheme the unit have to prepare an estimate for modernization & submit it to SIDBI.TECHNOLOGY UPGRADATION & MODERNIZATION FUND SCHEME {TDMF} • This fund was setup in the year 1996 by the SIDBI with an initial capital of 200 cores. .

00.000 of total capital of the fund required.VENTURE CAPITAL FUND SCHEME • SIDBI is participating in the Venture capital fund set by public sector institutions as well as private companies to the extent of Rs. .50. • The fund should be dedicated to financing small industry preferably the most risky one.

. • The equity capital loan to the extent of 2. SIDBI is operation a National Equity Fund Scheme.NATIONAL EQUITY FUND SCHEME • In order to provide equity type assistance.5lakh is sanctioned to each project provided the prefect qualities under this scheme.

• Hence. • Seed money is available through DIC { Direct Industry Centre } to those entrepreneur who are technically qualified but lack of own capital. . SIDBI introduced seed money scheme for the benefit of entrepreneurs.SEED MONEY SCHEMES • One of the constraints faced by Entrepreneurs is the lack of own resources to promote the minimum promoter contribution.

• 80% share in employment generation.“SMALL” MAKES “BIG” DIFFERENCE • Small industries contributes more than 45% share in industrial production. • Share in services is more than 65%. • More than 35% share in India’s export .

discounting and rediscounting as well as financial assistance through indirect functions regarding lending to primary institutions.CONCLUSION In conclusion we can say that the SIDBI. encouraging small scale sector in Rural India. by the mode of refinancing. through its direct assistance to small units and through its various developmental and supporting services. .

Than Q 23 .

Sign up to vote on this title
UsefulNot useful