SIDBI collaborates with the Government of Assam to strengthen ties for the development of MSMEs

Small Industries Development Bank of India (SIDBI), the principal financial institution engaged in the promotion, financing, and development of Micro, Small, and Medium Enterprises (MSMEs) today participated in a special event held at the Administrative Staff College, Guwahati, Assam to strengthen state co-operation.

The event was chaired by Shri Himanta Biswa Sarma, Hon’ble Chief Minister of Assam. During the event, Shri K. K. Dwivedi, IAS, Principal Secretary, Industries & Commerce, Govt. of Assam presented their expectations of the Govt. of Assam on three major themes viz. startups, cluster development and livelihood, and enterprise promotion.

On this occasion, Shri Himanta Biswa Sarma, Hon’ble Chief Minister of Assam called upon state-level institutions and line departments to enhance co-operation with institutions like SIDBI. He laid expectations that the cluster program should have twining with the One District One Product model such that niche areas of the state can be brought up in the value chain, thus helping those at the bottom of the pyramid. He also requested SIDBI to extend its expertise to manage startup funds along with active state-level institutions.

The Hon’ble Chief Minister of Assam called upon SIDBI to help the state in formulating a suitable guarantee fund leveraging Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and also state extending its funds to either bear the service fee or extend the guarantee coverage beyond CGTMSE. He also appreciated the Prayaas Scheme of SIDBI which can bring a change to the microfinance scenario in the state.

“ Shri Sivasubramanian Ramann, IA&AS, Chairman and Managing Director of Small Industries Development Bank of India said, “SIDBI has been laying thrust on kindling entrepreneurship through its Mission Swavalamaban and also by digitizing credit availability process such that end customers reap the benefit of the lower rate of interest and transparent access. SIDBI has been dovetailing its promotion and development initiatives on the soft side with hard infrastructure through the latest offerings such as cluster development fund. SIDBI looks forward to deepening its footprint in the State of Assam by contributing to livelihood and micro-enterprise value chain as also innovation and startup ecosystem.”

Shri Ramann handed over the in-principle approval commitment letter to Shri K. K. Dwivedi, IAS, Principal Secretary, Industries & Commerce, Govt. of Assam in the presence of Shri Himanta Biswa Sarma, Hon’ble Chief Minister of Assam, Shri Keshab Mahanta, Minister of Health and Family Welfare, Science & Technology and Information Technology and Shri Atul Bora, Minister for Agriculture and Veterinary in Government of Assam, Shri Ravi Shankar Prasad, IAS, Additional Chief Secretary, Shri PVSLN Murty, Chairman and Managing Director, North Eastern Development Finance Corporation Limited (NEDFi) and Dr. R. K. Singh, Chief General Manager, SIDBI

 It was also agreed upon that the project-specific moderately priced loan assistance under SIDBI Cluster Development Fund (SCDF) shall be extended by SIDBI to State Government for upgrading various existing MSME clusters and for developing new industrial infrastructural facilities in the State of Assam.

SIDBI has set up Project Management Units (PMUs) in 11 states namely, Assam, Andhra Pradesh, Rajasthan, Gujrat, Haryana, Maharashtra, Delhi, Uttar Pradesh, Uttarakhand, and Tamil Nadu as recommended by the Expert Committee on MSMEs for a more focused engagement of SIDBI with State Governments for infrastructure projects in clusters. The PMU in the State of Assam has worked closely with the industries department and rural livelihood mission to give a fillip to formalization, sustainable digital marketing, undertaken rapid profiling of migrant labour options for entrepreneurship, and mapped the key hard infrastructure projects.

It may be mentioned that SCDF has been set up with the support of the Reserve Bank of India (RBI) to support the hard infrastructure facilities in clusters pan India. The fund is envisaged to support the setting up, upgrading, and renovation of MSME infrastructure in areas other than agriculture. The major sectors include industrial and agri-allied sectors in the MSME eco-space, social sector projects in and around MSME clusters, and connectivity to MSME clusters.

About SIDBI: Since its formation in 1990, SIDBI has been impacting the lives of citizens across various strata of the society through its integrated, innovative and inclusive approach. Be it traditional, domestic small entrepreneurs, bottom-of-the-pyramid entrepreneurs, to high-end knowledge-based entrepreneurs, the Small Industries Development Bank of India has directly or indirectly touched the lives of Micro and Small Enterprises (MSEs) through various credit and developmental engagements. SIDBI 2.0 carries the vision of inclusive, innovative, and impact-oriented engagements. To know more, check out: https://www.sidbi.in

Disclaimer: this is an official press release by SIDBI.