SAFVAN SAFVAN BAHISH BAHISH

NAZIYA NAZIYA

SUJIN SUJIN ANAS ANAS

The Government of India set up the SIDBI under a special Act of the Parliament in October 1989.

SIDBI commenced its operations from April 2, 1990 with its head office in Lucknow.

SIDBI has been setup as a wholly owned subsidiary of IDBI.

Its authorized capital is Rs.250 crore with an enabling provision to increase it to Rs.1000 crore.

It is the apex institution which oversees, co-ordinates & further strengthens various arrangements for providing financial and non-financial assistance to small-scale, tiny, and cottage industries.

INTRODUCTION

Mission:“To empower the Micro, Small and

Medium Enterprises (MSME) sector with a view to contributing to the process of

economic growth, employment generation and balanced regional development”

Vision:“To emerge as a single window for

meeting the financial and developmental needs of the MSME sector to make it strong, vibrant and globally competitive, to position SIDBI Brand as the preferred and customer - friendly institution and for enhancement of share - holder wealth and highest corporate

values through modern technology platform”

MISSION & VISION

• Expansion of small scale sector and increase its share in industrial output.

• Development of rural areas where more than 70% of the population resides.

• Increase the efficiency of SSIs.• Increase the contribution of SSIs in export.• More employment generation in rural areas

of rural India.

AIM

PURPOSE

TO PROVIDE FACTORING SERVICE TO THE MANUFACTURERS IN SSI SECTOR SUPPLYING THEIR PRODUCTS ON CREDIT TERMS TO VARIOUS PURCHASERS IN THE DOMESTIC MARKET WITH A VIEW TO ASSISTING THEM IN THEIR RECEIVABLE MANAGEMENT AS ALSO PROVIDING THEM WITH FINANCE AGAINST THE RECEIVABLES FACTORED.

Financing Promotion Development Co-ordination

OBJECTIVES

• Shri R.M.Malla: Chairman and Managing Director

• Shri Rakesh Rewari: Deputy Managing Director• Shri Madhav Lal: Additional Secretary & DC

(MSME), Ministry of MSME, Government of India

• Smt. Ravneet Kaur: Joint Secretary, Department of Financial Services, Ministry of Finance, Government of India

• Shri Janki Ballabh: Former Chairman, State Bank of India

MANAGEMENT

• Shri M. Balachandran: Former Chairman & Managing Director, Bank of India

• Shri S.K. Tuteja: Former Secretary, Government of India

• Shri T. R. Bajalia: Executive Director, IDBI Bank Ltd.

• Shri B. Manivannan: Executive Director (IT-BPR)Life Insurance Corporation of India

MANAGEMENT

• Direct finance.• Bills finance• Refinance• International finance• Promotional & Development activities.• Fixed deposit scheme• Technology Upgradation &

Modernization Fund Scheme {TDMF}• Venture Capital Fund Scheme• Seed Money Schemes• National Equity Fund Scheme

PRODUCTS & SERVICES

Since its beginning, SIDBI had been providing refinance to State Level Finance Corporations / State Industrial Development Corporations / Banks etc., against their loans granted to small scale units.

SIDBI’s direct finance schemes are:• Scheme for expansion / diversification of small

scale units.• Scheme for specialized marketing agencies.• Scheme for ancilaring / subcontract units.• Scheme for existing Export Oriented Units(EOUs)

to enable them to acquire ISO 9000 series certification.

DIRECT FINANCE

Bills Finance Scheme involves provision of medium and short-term finance for the benefit of the small-scale sector.

Bills Finance seeks to provide finance, to manufacturers of indigenous machinery, capital equipment, components sub-assemblies etc, based on compliance to the various eligibility criteria, norms etc as applicable to the respective schemes. To be eligible under the various bills schemes, one of the parties to the transactions to the scheme has to be an industrial unit in the small-scale sector within the meaning of Section 2(h) of the SIDBI Act, 1989.

BILLS FINANCE SCHEMES

Refinance scheme is introduced for catering to the need of funds of Primary Lending Institutes {PLI} for financing small scale sector.

Under the scheme, SIDBI grants refinance against term loans granted by the eligible PLIs to industrial concerns for setting up industrial projects in the small scale sector as also for their expansion / modernization / diversification.

PLIs are SIDC, SFC. Banks like commercial banks, Co-operative Banks, Regional Rural Banks               

REFINANCE SCHEMES

Schemes of re-finance assistence:• Scheme for SC-ST & physically

handicraft persons• Composite loan scheme• Equipment refinance schemes.• Schemes for small road transport

operators.• Special assistance to ex-servicemen.

• The main objective of the various International Finance schemes is to enable small-scale industries to raise finance at internationally competitive rates to fulfill their export commitments.

• The financial assistance is being offered in US Dollars and Euro currencies. Assistance in Rupees is also provided to the needy borrowers.

• The international finance is available from pre-shipment & post shipment credit.

• Need based limit, depending on the normal trade terms and credit period given to overseas buyers by exporters not exceeding 180 days.

INTERNATIONAL FINANCE SCHEMES

FIXED DEPOSIT SCHEME

THE INTEREST RATE STRUCTURE FOR SIDBI FIXED DEPOSIT

SCHEME OF SIDBI ARE AS UNDER:

Time periodTime period

Revised Annual Revised Annual Interest Rate %p.a. Interest Rate %p.a. * w.e.f August 10, * w.e.f August 10,

20092009

Interest (% p.a.)Interest (% p.a.) 12 months - 13 12 months - 13 months months

6.50 6.50

14 months - 36 14 months - 36 months months

7.00 7.00

14 months - 36 14 months - 36 months months

7.50 7.50

For Senior For Senior CitizensCitizens

7.07.0

7.57.5

8.08.0

As an apex financial institution for promotion, financing and development of industry in the small scale sector, SIDBI meets the varied developmental needs of the Indian SSI sector by its wide-ranging Promotional and Developmental (P&D)

activities.The activities are as follows:

• Entrepreneurship Development Programmes.

• Management Development Programmes.

• Technology Upgradation Programmes.

PROMOTIONAL AND DEVELOPMENT

ACTIVITIES

• This fund was setup in the year 1996 by the SIDBI with an initial capital of 200 cores.

• It was setup for the purpose of encouraging the existing small scale industrial units to modernize production facilities and adopt improved and updated technology for strengthening export capabilities.

• For availing benefits under this scheme the unit have to prepare an estimate for modernization & submit it to SIDBI.

• The sanction of funds is made depending upon the estimate submitted.

TECHNOLOGY UPGRADATION &

MODERNIZATION FUND SCHEME {TDMF}

• SIDBI is participating in the Venture capital fund set by public sector institutions as well as private companies to the extent of Rs,50,00,000 of total capital of the fund required.

• The fund should be dedicated to financing small industry preferably the most risky one.

VENTURE CAPITAL FUND SCHEME

• In order to provide equity type assistance, SIDBI is operation a National Equity Fund Scheme.

• The equity capital loan to the extent of 2.5lakh is sanctioned to each project provided the prefect qualities under this scheme.

NATIONAL EQUITY FUND SCHEME

• One of the constraints faced by Entrepreneurs is the lack of own resources to promote the minimum promoter contribution.

• Hence, SIDBI introduced seed money scheme for the benefit of entrepreneurs.

• Seed money is available through DIC { Direct Industry Centre } to those entrepreneur who are technically qualified but lack of own capital.

SEED MONEY SCHEMES

• Small industries contributes more than 45% share in industrial production.

• Share in services is more than 65%.

• 80% share in employment generation.

• More than 35% share in India’s export

“SMALL” MAKES “BIG”

DIFFERENCE

In conclusion we can say that the SIDBI, by the mode of refinancing, discounting and rediscounting as well as financial assistance through indirect functions regarding lending to primary institutions, through its direct assistance to small units and through its various developmental and supporting services, encouraging small scale sector in Rural India.

CONCLUSION

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