On

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Presentation On SIDBI Schemes
Presentation By T.L.Shanmuga Sundaram, AGM
SIDBI, Chennai
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SIDBI Set up on April 2, 1990
for
Promotion, Financing Development
of Small Scale Industries
And to
Co-ordinate the functions of institutions serving
the Small Industries
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SIDBIs Assistance
Indirect Assistance
Direct Assistance
Finance
Support services
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• Salient financials FY 2006
• Outstanding Rs.13890 Crore.
• PAT 270 Crore
• Net NPAs 1.97
• CAR 43

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Direct Credit Scheme
Direct Assistance
Technology Upgrad.
Fast Track Finance
Venture Capital
Export Finance
Indl./ Mktg Infrastr.
Bills Finance
Factoring
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SIDBI Nodal Agency for Government Schemes

• National Equity Fund
• Integrated Infrastructural Development Scheme
• Technology Development Modernisation Fund
  Scheme
• Technology Upgradation Fund Scheme for Textiles
  and Jute Industries
• Tannery Modernisation Fund
• Credit Guarantee Fund Scheme for Small Industries
  (through separate Trust)
• Credit Linked Capital Subsidy Scheme

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Direct Credit Scheme forSME Service Sector

• Eligible Borrowers
• New, Existing SME or Service Sector units
• Currency Rupee or FC Term loan
• Purpose
• Setting up a new SME unit/ service sector unit
• Modernisation, expansion, diversification
• Any other activity relevant to the project
• Marketing related activities
• Meeting working capital requirements
• Any other activity having linkages and benefits
  accruing to SME sector

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Credit Linked Capital Subsidy for Tech
Upgradation of SSI

• New or Existing SSI units
• To facilitate technology upgradation in specified
  products/ sub sectors
• 15 capital subsidy from GoI on the loan amount
  (eligible loan ceiling Rs.100 lakh)
• SIDBI is the nodal agency

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Receivables Finance Scheme

• Covers bills arising out of purchase of
  indigenous components / parts / sub- assemblies/
  accessories / intermediates manufactured by SSIs
  and service sector activities like Job work/ Road
  Transport/ Advertising/Software etc.
• SELLERS - SSI manufacturers/Service providers.
• PURCHASERS Corporate entity - good financial
  position track record

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Receivables Finance Scheme

• TERMS
• Period of unexpired usance of bill -
  not to exceed 90 days
• Total tenor of bill - not to exceed 120 days.
• Discount rate band 6.88 to 10.24 p.a.

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Receivables Finance Scheme

• Eligibility for SSIs
• Should be in existence for minimum 2 years.
• Should have made profits / declared dividends
  during past 2 years
• Not in default to Banks / FIs
• Limit based on credit sales to purchaser during
  past year / projected growth in sales for the
  current year

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Receivables Finance Scheme

• Eligibility for large purchasers
• Minimum sales of Rs.15 crore
• Minimum networth of Rs.3 crore
• Not in default to Banks / FIs
• Limit based on credit purchases from SSIs during
  past year / projected growth in sales for the
  current year

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DDS Equipment

• Twin Objectives
• Manufacturer can maximise sales by offering
  deferred payment facilities - gets value of
  machinery immediately by discounting with SIDBI
• Purchaser can repay over a period of 3/5 years.
• Interest 9.5
• Eligibility
• All manufacturing units public sector
  undertakings such as electricity boards /
  transport corporations.
• Either manufacturer or seller in SSI sector

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Equity type assistance Schemes- National Equity
fund

• To meet gap in equity
• For setting up new projects, expansion,
  modernisation, diversification of small scale
  units, service enterprises
• Project cost upto Rs. 50 lakh
• Min. promoters contribution 10
• Soft loan 25 of PC max. of Rs. 10 lakh
• Service charges 5 p.a. on soft loan

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PD Focus Areas (Contd..)

• Entrepreneurship Development Programmes
• Supported 1,709 EDPs, comprising 779 programmes
  for rural youth, 331 for women and 599 for other
  target groups
• Human Resource Development
• Organised 240 SIMAPS and 1074 STUPs benefiting
  over 20000 participants
• Technology upgradation
• 25 clusters for upgradation adopted
• Set up TBSE being converted to Technology Bank
• Pioneering initiatives taken in clusters include
  Mutual Credit Guarantee Fund (MCGF) Programme.

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PD Focus Areas (Contd..)

• Emphasis on environment management, quality
  management
• Conduct of over 88 awareness programmes on
  environment and quality management
• Constitution of Expert Group to advise on
  environment related issues
• Support for conducting workshops for specific
  industrial sectors to enable them to appreciate
  the concept of cleaner production.
• Research and Information Dissemination
• Book on Technology for SSIs
• WTO related studies

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Cluster Development Programmes

• Cluster development initiatives in 25 clusters
  all over India.
• Focus is on Technology Upgradation.
• In Tamilnadu, SIDBI, in association with UNIDO
  TASSSMA, launched Mutual Credit Guarantee Scheme
  in Ambur Cluster.

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Mutual Credit Guarantee Fund (MCGF)

• MCGF is a Corpus mutually created by a group of
  potential borrowers and matching contribution by
  SIDBI.
• MCGF stands as a guarantee for loans given to
  each and every contributor to MCGF.
• MCGF operates on the principle that not all
  members will require loan at the same time and
  only a small percentage of borrowers might
  default.

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Mutual Credit Guarantee Fund (MCGF)

• MCGF is managed and operationalised by a Legal
  Entity of the contributors to MCGF
• This corpus is placed with a lending agency and
  used as a security for leveraging funds for
  contributors.
• Thus, MCGF enables small units to avail bank
  loans without normal collateral requirements.

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VISIT SIDBI WEBSITE AT

• www.sidbi.com