Small Industries Development Bank of India [SIDBI] as the principal financial institution for promotion, financing and development of industry in the small scale sector, has been assisting the entire spectrum of the SSI sector, including the Tiny, Village and Cottage industries. During the year 2002-03, the aggregate sanctions and disbursements of SIDBI amounted to Rs.10904 crore and Rs.6789 crore respectively. Cumulative assistance, as at the end of March 2003, surged to Rs.86,158 crore in terms of sanctions and at Rs.59,101 crore of disbursements, thus recording a compounded annual growth rate of 13.4 % and 11.4 % respectively. Networth of the Bank is Rs.4075 crore as at the end of March 2003.
SIDBI’s financial assistance to small scale sector has three major dimensions
i) Direct assistance : The objective behind SIDBI's direct assistance schemes has been to supplement the efforts of PLIs by identifying the gaps in the existing credit delivery mechanism for SSIs. Assistance is provided directly through 43 branches of SIDBI. The assistance is extended directly for setting up of new SSI units, small hotels, hospitals/nursing homes, technology upgradation and modernisation, expansion and diversification, marketing of SSI products, setting up of multiplexes, development of infrastructure for the SSI sector, discounting of bills etc.
ii) Indirect assistance : SIDBI's schemes of indirect assistance envisage credit to SSIs through a large network of 913 PLIs SIDBI has bagged the prestigious "ADFIAP Development Award 2003" for its Rural Industries Programme designed to give impetus to rural development by creating sustainable industrial and service enterprises in rural areas. spread across the country with a branch network of over 65,000. The assistance is provided by way of refinance, bills rediscounting and resource support in the form of short term loans/line of credit in lieu of refinance etc.
iii) Development and Support Services : SIDBI extends development and support services in the form of loans and grants to different agencies working for the promotion and development of SSIs and tiny industries. The support is given for enterprise promotion with emphasis on rural industrialisation, HRD development in the SSI sector, technology upgradation, quality and environment management, marketing promotion, information dissemination etc.
SIDBI has bagged the prestigious "ADFIAP Development Award 2003" for its Rural Industries Programme designed to give impetus to rural development by creating sustainable industrial and service enterprises in rural areas.
SIDBI Venture Capital Ltd. [SVCL] a wholly owned subsidiary of SIDBI acts as the Asset Management Company of the National Venture Fund for Software and Information Technology. The fund has a committed corpus of Rs.100 crore as on March 31, 2003.
SIDBI Trustee Co.Ltd. [STCL] has been set up to carry out trusteeship functions for Venture Capital Funds. Presently STCL is acting as Trustee of National Venture Fund for Software and Information Technology.
Associate Organisations :
Credit Guarantee Fund Trust Scheme for Small Industries [CGTSI] promoted jointly by Government of India and SIDBI, was launched by the Hon'ble Prime Minister on August 30, 2000. The credit guarantee scheme of CGTSI aims at helping the new and existing industrial units in SSI sector, in getting collateral free credit by way of both term loan and working capital from eligible member lending institutions. Member Lending Institutions include scheduled commercial banks, select Regional Rural Banks and such of the institutions as may be approved by Government of India.
Technology Bureau for Small Enterprises [TBSE] was set up by SIDBI in 1995 in collaboration with United Nations Asian & Pacific Center for Transfer of Technology. The Bureau aims at helping SSI units to attain international competitiveness through transfer of latest available technologies from both within and outside the country