NEW INITIATIVES BY SMALL
INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI) FOR PROMOTION OF SMALL SCALE
order to facilitate the collateral-free/third-party guarantee free credit
facilities to small scale industries, Government of India in association with
SIDBI launched the Credit Guarantee Fund Scheme for Small Industries with effect
from August 01, 2000. The Scheme is being implemented by Credit Guarantee Fund
Trust for Small Industries (CGTSI), jointly set up by GoI and SIDBI. The initial corpus of Rs.1.25 billion
of CGTSI has been contributed by Government of India and SIDBI in the ratio of
4:1 which is likely to be raised to Rs.25 billion in future. Following the
announcements made by the Hon’ble Prime Minister, the ceiling on loans and
advances to be covered under the Scheme has been enhanced from Rs.1 million to
Rs.2.5 million extended by banks, selected Regional Rural Banks or such other
institutions as may be directed by the Government.
Credit Linked Capital
Subsidy Scheme for Technology Upgradation of SSIs.
the announcements made by the Hon’ble Prime Minister on August 30, 2000, the
Government of India launched a new Credit-Linked Capital Subsidy Scheme (CLCSS)
for Technology Upgradation of SSIs in the select products/sub-sectors for
strengthening the units in the identified sectors to face the challenges of
liberalisation. The select sectors, inter alia, include leather and leather
products including footwear and garments, food processing, information
technology, drugs and pharmaceuticals, auto components, etc. The Scheme, being
implemented through SIDBI, envisages a capital subsidy of 12 per cent on loans
advanced to SSI units by scheduled commercial banks and National Small
Industries Corporation Ltd.
order to facilitate the promotion and development of knowledge-based
enterprises, primarily in the small and medium sector, SIDBI launched a new
programme viz. SIDBI National Programme on Innovation and Incubation on March
11, 2000. During FY 2001, SIDBI
entered into MoUs with Indian Institute of Technology, Kanpur and Birla
Institute of Technology, Mesra, Ranchi for setting up such centres. The Centre
at Kanpur has already become operational.
Capital Funds for Small Industries.
promoting Regional and National level venture capital funds, SIDBI has decided
to set up an Overseas Dollar Denominated Venture Capital Fund in collaboration
with Intech Venture Group (IVG), Mauritius. An MoU has already been entered into
with IVG. The focus of the Fund would be on hi-tech overseas companies aiming at
establishing a major presence in India or abroad in joint collaboration with
Refinance Scheme for
Term Loans granted by SFCs/SIDCs to industrial concerns other than in the Small
Scale Sector – Under the
scheme refinance assistance is extended against the loans and advances extended
by SFCs/SIDCs to industrial concerns other than in the small scale sector.
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