With the support of a fund of two thousand crore, announced in the Union Budget of this financial year, for improving credit flow to small and medium firms, the Small Industries Development Bank of India (SIDBI) will build up its strong presence in industrial sector.
Mr. Rakesh Rewari, Deputy M.D., SIDBI said “We will open branches in the industrial clusters of Kolapur in Maharashtra and Chindwara in Madhya Pradesh in the coming month”.
SIDBI is not in the business of direct loan providing. It extends funds to the Micro, Small and Medium Enterprises (MSMEs) through banks and other institutions. It has already opened branches in clusters of Alwar in Rajasthan, Trichi (Tamil Nadu) and Kozhikode (Kerala).
India’s approx 13 million SMEs contributing 39% to the country’s manufacturing sector are housed in over three hundred fifty industrial clusters.
Finance Minister Mr. P. Chidambaram has declared two funds of Rs two thousand crore in SIDBI in the Budget for this financial year for setting up of risk capital financing and for enhancing refinance capability to the MSME sector.
One Comment
Instead of providing the direct loans what kind of other credit section SIDBI is dealing with?
And what statistics SIDBI is using you opening the branches in india. will they be able to give a boom to the real estate market ?