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(June 2009)
Click [show] on right for more details.[show] Small Industries Development Bank of India ([1]) is an independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises in India. Set up on April 2, 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India. Current shareholding is widely spread among various state-owned banks, insurance companies and financial institutions. Beginning as a refinancing agency to banks and state level financial institutions for their credit to small industries, it has expanded its activities, including direct credit to the SME through 100 branches in all major industrial clusters in India. Besides, it has been playing the development role in several ways such as support to micro-finance institutions for capacity building and onlending. Recently it has opened seven branches christened as Micro Finance branches, aimed especially at dispensing loans up to Rs. 5.00 lakh. It is an apex body[clarification needed] and nodal agency for formulating, coordination and monitoring the policies and programme for promotion and development of small scale industries. SIDBI has also floated several other entities for related activities. Credit Guarantee Fund Trust for Micro and Small Enterprises ([2]) provides guarantees to banks for collateral-free loans extended to SME. SIDBI Venture Capital Ltd.([3]) is a venture capital company focussed at SME. SME Rating Agency of India Ltd. (SMERA - [4]) provides composite ratings to SME.
Contents
1 Provision Of Charter 2 Functions meant to help small scale industries 3 Achievements 4 Role in green finacing 5 References
SIDBI was established on April 2, 1990. The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters connected therewith or incidental thereto. 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 . The Charter establishing it, The Small Industries Development Bank of India Act, 1989 envisaged SIDBI to be "the principal financial institution for the promotion, financing and development of industry in the small scale sector and to co-ordinate the functions of the institutions engaged in the promotion and financing or developing industry in the small scale sector and for matters connected therewith or incidental thereto. Credit Guarantee Fund Trust for Micro and Small Enterprises popularly known as CGTMSE is widely being used by many PSU Banks and Private sector banks to fund MSME sector.
[edit] Achievements
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. Credit Guarantee Fund Trust for Micro and Small Enterprises popularly known as CGTMSE is widely being used by many PSU Banks and Private sector banks to fund MSME sector.
and lack of awareness about its advantages are the major reasons for SMEs not being able to upgrade the technology.[2] As the apex body for promoting finance and development of SMEs, SIDBI has proactively been working in the area of sustainable development of SME sector. It has been involved in cluster level intervention for modernization and technology evolution. It has also been acting as the key agency for developing government schemes in the area of technology advancement for SMEs. It has been involved in two major ways-[3] 1. Financing for energy efficiency- SIDBI has taken several initiatives to promote lending for green and energy efficient technologies in MSME sector. SIDBI follows focused lending schemes for those who want to upgrade to green technology. SIDBI has provided loans under the JICAscheme to more than 2000 MSMEs with aggregate assistance of more than Rs.800 crore for cleaner production and energy saving. This has lead to establishment of electronic waste recycling facility in E-Parisara Pvt. Ltd. In Bangalore. The advantages from this project has helped more than 100 MSMEs to become compliant with regulatory requirements, reduction in waste treatment cost and reuse & recycling of treated materials. Moreover, Environ Protection & Infrastructure Ltd. In Surat, Gujarat has been assisted by SIDBI to set up Treatment Storage and Disposal Facilities (TSDF) to help create a proper waste-disposal method. Eco Green Solution Systems (P) Ltd. has been assisted for setting up of a Treatment Storage and Disposal Facilities (TSDF) facility for toxic waste. SIDBI has also provided assistance to taxi-drivers in Mumbai to get new Taxis without any collateral security under CGTMSE coverage. A micro-finance institution named Friends of Women's World Banking (FWWB) was also provided assistance of Rs.10 crore for providing Solar Lanterns of 2 watts each to various microentrepreneurs. SIDBI has also signed an MOU with American India Foundation to provide support to low-income groups under Rickshaw-Sangh Programme. Under this, with the help of finance from SIDBI, BMC has been able to provide 500 rickshaws to poor people residing in and around lucknow. 2. Further green growth with development support- SIDBI has entered into a Memorandum of Understanding (MoU) with the Bureau for Energy Efficiency (BEE) for creation of a shelf of energy efficient technologies for 25 MSME clusters. Multi-activitymulti agency MSME Financing and Development Project (MSMEFDP) has also come out with knowledge series publication on energy efficiency in Fruit & Vegetable Processing, Ceramics, Foundry and Engineering clusters to combat the problem of information asymmetry. Thus, clearly, SIDBI has been able to get international best practices in Green Financing. It has visibly been an active change maker for the country focusing extensively on the millennium development goals.
Small Industries Development Bank of India (SIDBI) was established as wholly owned subsidiary of Industrial Development Bank of India (IDBI) under the small Industries Development of India Act 1989. It is the principal institution for promotion, financing and development of industries in the small-scale sector. It also coordinates the functions of institutions engaged in similar activities. For this purpose, SIDBI has taken over the
responsibility of administrating Small Industries Development Fund and National Equity Fund from IDBI. Capital. SIDBI started its operations from April 1990 with an initial authorised capital of Rs. 250 crore, which could be increased to Rs. 1000 crore. It also took over the outstanding portfolio of IDBI relating to small scale sector held under Small Industries Development Fund as on March 31,1990 worth over Rs. 4000 crore.
http://www.linkedin.com/title/deputy+general+manager/at-sidbi/