Introduction Small Industries Development Bank of India (SIDBI) was established inApril 1990 under an Act of Indian Parliament

as the principal financialinstitution for: Promotion Financing Development of industry in the small scale sector Co-ordinating the functions of other institutions engaged in similar activities SIDBI has completed 12 years of service to the small-scale sector.Consequent upon, amendment in the SIDBI Act, the Bank has been delinkedfrom SIDBI with effect from March 27, 2000. The SIDBI (Amendment)Act, 2000 has changed the provisions relating to capital structure, shareholding pattern, management, business, borrowings, etc.The authorizedcapital of the Bank has been increased from Rs.4.5 billion To Rs.10 billion,divided into 750 million equity shares of Rs.10/- each and Rs.250 millionredeemable preference shares of Rs.10/- each. The amended Act providesfor divesting of 51% of the equity share capital of Rs.4.5 billion Subscribedand held by IDBI in favour of Life Insurance Corporation of India, GeneralInsurance Corporation of India, Public Sector Banks and other Institutionsowned or controlled by the Government of India. Presently, shares of theBank are held by 36 such Institutions. While IDBI continues to be the singlelargest shareholder of SIDBI, the State Bank of India and Life InsuranceCorporation of India follow as the next two large shareholders in that order. Since its inception, SIDBI has been assisting the entire spectrum of SSISector including the tiny, village and cottage industries through suitableschemes tailored to meet the requirement of setting up of new projects,expansion, diversification, modernization and rehabilitation of existing units. SIDBI among Top 30 Development Banks of the World SIDBI retained its position in the top 30 Development Banks of the World in the latest ranking of The Banker, London. As per the

May 2001 issue of The Banker, London SIDBI ranked 25th both in terms of Capital and Assets. Domain of Service The Small Scale Industries (SSIs) sector is a vibrant and dynamicsector of the Indian economy. The sector presently occupies an importantplace and its contribution in terms of generation of employment, output andexports is quite significant. For the purpose of defining an SSI unit in India,the

original purchase value of the plant and machinery installed in a unit hasbeen adopted as the sole criterion. The ceiling on investment in plant andmachinery has undergone periodical change from time to time since after theintroduction of this concept. For a unit to be considered as SSI unit, thecurrent ceiling on investment in plant and machinery is Rs. 10 million(effective December 24, 1999). For a tiny unit, the said ceiling is Rs. 2.5million. The limit in select sub-sectors, such as, knitwear, hosiery and hand-tools is Rs.50 million. The Small Scale Industries sector including tiny unitscomprises the domain of SIDBI's business. Besides, the projects in theservices sector with total cost upto Rs.250 million are also taken within thearea of SIDBI's operations. The Bank also finances industrial infrastructureprojects for the development of SSI sector. Business Domain The business domain of SIDBI consists of small scale industrial units,which contribute significantly to the national economy in terms ofproduction, employment and exports. Small scale industries are theindustrial units in which the investment in plant and machinery does notexceed Rs.10 million. About 3.1 million such units, employing 17.2 millionpersons account for a share of 36 per cent of India's exports and 40 per centof industrial manufacture. In addition, SIDBI's assistance flows to thetransport, health care and tourism sectors and also to the professional andself-employed persons setting up small-sized professional ventures.

Mission SIDBIS COMMITMENT SIDBI is committed to developing a strong, vibrant and responsivesmall scale sector. This commitment is to be achieved through a variety ofmeans. Principal amongst them is finance. Alongside finance, SIDBIprovides appropriate support in the form of promotional and developmentalservices. SIDBI has been built up as a financially sound, vibrant, forwardlooking and technically oriented institution and, it intends to sustain thisorientation in future. SIDBI intends to provide quality services to its clients,devoid of any systemic and procedural difficulties. OPERATIONAL EMPHASIS SIDBI, in its operational strategy, emphasizes: Enhancement in the flow of financial assistance to SSIs and Enhancement in the capabilities of SSIs at all levels, with focus on adoption of improved and modern technology. The small industries sector in India is dominated by a large number of smallunits. These micro-enterprises require special nurturing. SIDBI has beenoperating schemes like: Single Window Scheme and Composite Loan Scheme To ensure that financial assistance is made available to such units on easy terms and with hassle-free procedures.

It has been a matter of policy in SIDBI to identify the areas of gaps incredit delivery system and fill them through devising appropriate newschemes and implementing them. In the last 9 years, 26 new schemes havebeen introduced. About sidbi

Small Industries Development Bank of India (SIDBI) was set up on April 02, 1990 under an Act of the Parliament, functions as the Principal Financial Institution for the promotion, financing and development of the micro, small and medium Enterprise (MSME) Sector and co-ordinate the functions of the institutions engaged in similar activities. SIDBI started as refinancing institution, has emerged as a complete financial solution institution meeting all the financial and capacity building needs of MSME sector. SIDBI also plays a proactive role of a change agent and engages in such policy advocacy for MSMEs, as aligned to national priorities. SIDBI gives increasing emphasis on promotional activities in clusters to foster sustainable development of Indian MSMEs. The activities shall also be aligned more with the emerging areas such as energy efficiency, climate change, CDM, green rating, etc. as also those which result in improving the competitiveness of the sector.