Small Industries Development Bank of India (SIDBI)

Origin & Objectives

Small Industries Development Bank of India (SIDBI) was established in April 1990 under an Act of Indian Parliament as the principal financial institution for :

• Promotion
• Financing
• Development of industry in the small scale sector
• Co-ordinating the functions of other institutions engaged in similar activities

Since its inception, SIDBI has been assisting the entire spectrum of SSI Sector including the tiny, village and cottage industries through suitable schemes tailored to meet the requirement of setting up of new projects, expansion, diversification, modernisation and rehabilitation of existing units.

Domain of Service

The Small Scale Industries (SSIs) sector is a vibrant and dynamic sector of the Indian economy. The sector presently occupies an important place and its contribution in terms of generation of employment, output and exports is quite significant. The Small Scale Industries sector including tiny units, comprises the domain of SIDBI's business. Besides, the projects in the services sector with total cost upto Rs.250 million are also taken within the area of SIDBI's operations. The Bank also finances industrial infrastructure projects for the development of SSI sector.

Channels of Assistance

SIDBI's financial assistance to small scale sector have three major dimensions:

1. Indirect assistance to primary lending institutions (PLIs);
2. Direct assistance to small units; and
3. Development and Support Services

Indirect Assistance

SIDBI's Schemes of indirect assistance envisages credit to SSIs through a large network of 913 PLIs spread across the country with a branch network of over 65000. The assistance is provided by way of refinance, bills rediscounting, and resource support in the form of short term loans/Line of Credit (LoC) in lieu of refinance, etc.

Direct Assistance

The objective behind SIDBI's direct assistance schemes has been to supplement the efforts of PLIs by identifying the gaps in the existing credit delivery mechanism for Small Scale Industries. Direct assistance is provided under several tailor made schemes through SIDBI's 41 Regional/Branch offices spread across the country.

Development And Support Services

The Bank extends development and support services in the form of loans and grants to different agencies working for the promotion and development of SSIs and tiny industries. Over the years, the initiatives of SIDBI under promotional and developmental activities have crystallised into the following important areas:

• Enterprise Promotion with emphasis on Rural Industrialisation
• Human Resource Development to suit the SSI sector needs
• Technology Upgradation
• Quality and Environment Management
• Marketing and Promotion and
• Information Dissemination.

Contact Address

For more information please log on to http://www.sidbi.com