SIDBI Initiatives for MSME’s 2022
The word SIDBI is a reference to the Small Industries Development Bank of India. It is a prestigious financial institution that assists small, medium-sized companies in India. SIDBI is a wholly-owned subsidiary of IDBI and is focused on aiding and financially supporting numerous small and micro-sized companies. SIDBI is a regulatory agency which is under the aegis under the Ministry of Finance, Government of India. SIDBI manages the "Institutional Financial Program which offers financial assistance towards the MSME sector, and assists in establishing E-commerce platforms for these companies which further aid in MSME exports. Its principal focus is offering Venture Capital funding to MSME's. The loans are provided under the "Ubharte sitaare" program, which was launched on the 21st of August, 2021. All of this is because of the Trade Facilitation Agreement approved by WTO that proved crucial in helping local companies to meet the requirements for Exports of MSME. SIDBI Projects to 2022 has lately been focused upon Cluster Development initiatives for SME Development.
It's now set up its own Cluster Development Vertical that will be responsible for both hard and soft infrastructure. SIDBI has established its Cluster Development Fund (SCDF) with the help of the Reserve Bank of India. The fund provides assistance to different State Governments in the creation of infrastructure for the development of brownfield (induced clusters) and brownfield (existing clusters) MSME Clusters. The Fund is currently planning clusters with thematic involvement which aid in SME Development.
Following are diverse areas of promotion and lending that are covered into SIDBI Vision 2.0 for MSME's in 2022:
A.) Institutional Finance – To qualified Prime Lending Institutions (PLIs) like Banks, Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs) for facilitation of onward loans to micro- and small-sized enterprises.
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B.) Direct Finance : To offer short and medium term financial assistance for MSME's who are eligible, or to complete urgently approved orders.
C.) Promotion and Development SIDBI plays an active role in the development and promotion of MSMEs, in order to solve the various non-financial issues they face.
D.) Subsidiary Network - SIDBI has implemented an SIDBI PLUS Strategy and helped to create institutions through the formation of a strong network of affiliates and subsidiaries that are instrumental in achieving the growth goals that are inclusive.
A.) Aggregator Platforms SIDBI has set up www.udyamimitra.in the interactive portal that serves as a universal loan portal that provides access to handholding and credit services for MSMEs.
Fund of Funds.) Fund of Funds - To encourage the government's plan for entrepreneurship growth, the Fund of Funds provides an indirect source of funding to those who are part of the startup ecosystem to build eCommerce platforms, through the distribution in the form of funding to VC funds.
G.) Structural Interventions Structural Interventions SIDBI together with other participants in the MSME space has carried out interventions to promote the growth and development of the MSME ecosystem. The spotlight on industry, MSME pulse Microfinance Pulse and Fintech Pulse are some of its most important quarterly reports.
Special SIDBI Initiatives for 2022 :
1.) Dedicated funds: Swavalamban Resource Facility Inclusion MSME Development Fund, Swavalamban Challenge Fund, Swavalamban Divyangjan ATMA Fund Samridhhi and Neev Fund.
2.) Bank Sakhi : Support to State Rural Livelihoods Mission. Through the program, SIDBI trained over 1600 Bank Sakhis and supervised them across all 38 districts of Bihar in order to provide access to financial services in the remotest corners. SIDBI also provided capacity-building support, training, and assistance to 250 owners of kirana stores. The company plans to further replication of the highly successful Bihar project to extend to regions that include Assam as well as Jharkhand.
3.) Swavalamban Aid for Financial Literacy,Adoption of market and credit in villages Links (SAFAL) Social Society for improvement of the economy of villages (SAVE) was aided by 120 villages in Bihar and Jharkhand offering Financial Literacy training to over 2400 livelihood entrepreneurs or Micro entrepreneurs. Highlights include 121 villages that were adopted in this program. Credit Linkages of participants from 1965 and Market Linkages for 1467 participants were completed. The program is now being scaled to 700 villages across 10 states and is ensuring Financial Literacy to more than 15000 small and medium-sized business owners.
4.) Swavalamban Connect Kendras (SCK'S) is a the digital method of enterprise promotion to set up 1000+ businesses via 100 SCK'S. SCKs serve as counseling centres in the 100 districts in UP, Bihar, Jharkhand, Telangana and Odisha. Anyone seeking assistance should call toll-free 1800-200-1265 (in UP) and 1800-121-1265 (in other states). Central hubs identify the origin of the caller's STD codes fed to it and sends the caller to SCK in the district that is concerned. To date there have been 4601 applicants have been helped and 1893 companies have been set up and credit connection granted to 936 recipients.
5.) 5.) Project Management Units (PMU's) The These Project Management Units in 11 states were designed for building the MSME network and spreading best practices via learning sessions. Under PMU full-time experts, they are assigned to departments with nodal connect. At the state level, while SIDBI's local offices have an enthralling cooperation and monitor the central expert agency unit which works in conjunction with the Promotion and Development Vertical at the Head Office.
1st Phase - The 11 states that are part of the initial phase include Assam, Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, Uttar Pradesh & Uttarakhand, initially for two years. MoUs signed with all eleven states' authorities have been inked, and PMUs have been operating in these states.
2nd Phase Project Management Units located in eight additional states as well as one Union Territory viz. Telangana J&K/Ladakh Madhya Pradesh, Jharkhand, Punjab, Bihar, West Bengal, Odisha and Chhattisgarh are scheduled to be complete in their second phase of the year 2022. MoU with the state/UT government. West Bengal, Telangana, Bihar J&K have already been finalized.
There has been a lot of work done in the grassroots by SIDBI. These are just a few of the most recent initiatives implemented by SIDBI to support the growth of MSME's across India. In addition, the Trade Facilitation Agreement approved by WTO has been a key factor in facilitating exports of MSME. In addition, these strategies were able to offer the marketing strategy for small and medium-sized businesses, which has led to the creation of a positive environment for growth for Small and Medium-sized Enterprises (SMEs) in India.
