SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)
SIDBI was set up by an Act of Parliament, as an apex institution for promotion, financing and development of industries in small scale sector and for coordinating the functions of other institutions engaged in similar activities. It commenced operations on April 2, 1990 by Government of India, as a wholly owned subsidiary of IDBI.It was delinked from IDBI w.e.f. March 27, 2000. It is the principal financial institution for promotion, financing and development of industry in the small scale sector. SIDBI is headed by the Chairman & Managing Director. The SIDBI is operating different programmes and schemes through 5 Regional Offices and 33 Branch Offices. SIDBI extends direct/indirect financial assistance to SSIs, assisting the entire spectrum of small and tiny sector industries on All India basis.The range of assistance comprising financing, extension support and promotional, are made available through appropriate schemes of direct and indirect assistance for the following purposes:-
- Setting up of new projects
- Expansion, diversification, modernisation, technology upgradation, quality improvement, rehabilitation of existing units
- Strengthening of marketing capabilities of SSI units.
- Development of infrastructure for SSIs and
- Export promotion.
DIRECT ASSISTANCE SCHEMES
SIDBI directly assists SSIs under
- Project Finance Scheme
- Equipment Finance Scheme
- Marketing Scheme
- Vendor Development Scheme
- Infrastructural Development Scheme
- Technology Development & Modernisation Fund
- Venture Capital Scheme
- Assistance for leasing to NBFCs, SFCs, SIDCs and
- Resource support to institutions involved in the development and financing of small scale sector.
These Schemes are mainly targeted at addressing some of the major problems of SSIs in areas such as high tech project, marketing, infrastructural development, delayed realisation of bills, obsolescence of technology, quality improvement, export financing and venture capital assistance.
INDIRECT ASSISTANCE SCHEMES
Under its indirect schemes, SIDBI extends refinance of loans to small scale sector by Primary Lending Institutions (PLIs) viz. SFCs, SIDCs and Banks. At present, such refinance assistance is extended to 892 PLIs and these PLIs extend credit through a net work of more than 65,000 branches all over the country.
All the Schemes of SIDBI both direct and indirect assistance are in operation in all the States of the country through 39 regional/branch offices of SIDBI.
Promotional and Development Activities
SIDBI is actively involved in promoting tiny and small scale industries by means of its promotional and developmental activities through suitable professional agencies for organising Entrepreneurship Development Programmes, Technology Upgradation & Modernisation Programmes, Micro Credit Schemes and assistance under Mahila Vikas Nidhi to bring about economic empowerment of women specially the rural poor by providing them avenues for training and employment opportunities.
- Tiny Units
- Women Entrepreneurs
- Backward Areas