SIDBI provides first approval to the Government of Tamil Nadu under the SIDBI Cluster Development Fund (SCDF)

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) has provided the first approval under SIDBI Cluster Development Fund (SCDF) to the Government of Tamil Nadu in a special event held at the Tamil Nadu Assembly today.

The in-principle approval letter was handed over by Shri Sivasubramanian Ramann, IA&AS, Chairman and Managing Director, SIDBI in the presence of Shri M. K. Stalin, Hon’ble Chief Minister of Tamil Nadu, Dr. Palanivel Thiaga Rajan, Minister for Finance, Shri Thangam Thennarasu, Minister for Industries, Shri T. M. Anbarasan, Minister for Rural Industries, Shri V. Irai Anbu, IAS, Chief Secretary, Shri S. Krishnan, IAS, Finance Secretary, Shri N.Muruganandam, IAS, Principal Secretary – Industries, Shri V. Arun Roy, IAS, MSME Secretary, Smt. Chitra K. Alai, Chief General Manager, SIDBI, and Dr. R. K. Singh, Chief General Manager, SIDBI.

The project-specific moderately priced loan assistance under SCDF will be extended by SIDBI to State Government for upgrading various existing MSME clusters and for developing new industrial infrastructural facilities in the State of Tamil Nadu.

Shri Sivasubramanian Ramann, IA&AS, Chairman and Managing Director of SIDBI said, “The thrust shall be laid on clusters in sectors/subsectors which can directly benefit the MSMEs in the state and to bring them to a level ‘NEXT’ wherein they emerge vibrant, higher on the value chain and become sustainable. SIDBI shall complement these with its customized direct lending products being channelized in the supported clusters, setting an example for other
institutions to adopt and replicate. On a need basis, SIDBI shall also examine supporting the soft infrastructure issues in select clusters relating to technology, skilling/upskilling, energy efficiency, market, and credit connect. A pilot has been launched in Ambattur leather cluster.”

The expert committee on MSMEs headed by Shri U.K. Sinha has recommended a more focused engagement of SIDBI with State Governments for MSME development and promotion including the use of Priority Sector Shortfall (PSS) funds to create a low-cost lending window for State Governments for infrastructure projects in clusters. Accordingly, 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., The PMUs in co-ordination with SIDBI and State Governments has given policy/scheme inputs on Innovation Voucher Programme scheme, New Entrepreneur cum Enterprise Development Scheme, undertaken rapid profiling of migrant labors options for entrepreneurship in PMU
States etc.

SCDF has been set up with the support of 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, SIDBI 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

dislciamer : this is an official press release by SIDBI.