POLICY INITIATIVES BY SIDBI
with the changing needs of the small scale industry sector SIDBI has been
reorienting its strategies of operation by modifying the existing schemes
as well as floating new schemes. A three-pronged strategy evolved includes
addition, expansion and simplification of schemes to enhance the flow of
credit to the SSI sector. The important policy initiatives taken in 1999-2000
are highlighted below :
The National Venture
Fund for Software and IT industry was set up at the national level by SIDBI
in association with Ministry of Information Technology, Government of India
and IDBI with an initial corpus of Re. 1 billion.
In order to enable
the small scale and tiny units (including SRTOs) affected by recent cyclone
in Orissa to restart their operations, a 100 per cent refinance on liberal
terms is being provided by SIDBI to all eligible PLIs against term loans
extended by them in respect of the fresh loans granted to affected units
in the SSI sector (including SRTOs) situated in the areas as notified by
the Government of Orissa.
Capital Limited, a wholly owned subsidiary of SIDBI, was formed to manage
Coverage of the
Financial support (Short Term Loans) to Banks scheme was further enlarged
by extending the facility to those banks also whose networth was Rs. 500
million and above. Three-tier interest rate band for loans
with different maturities was introduced.
With a view to
increasing the flow of assistance, modifications/relaxations were made
in Direct Factoring Scheme of the Bank in order to impart a renewed thrust
to the scheme.
The scope of the
Refinance Scheme for Acquisition of ISO-9000 Series Certification by SSI
units was enlarged by allowing coverage of non-exporting SSI units.
Further, the criterion relating to the period of operation of the unit
was relaxed from four to two years.
A new simplified
scheme to provide short term loans to State Electricity Boards (SEBs) and
Central / State power generation, transmission and/or distribution corporations/
companies, to facilitate their purchases from SSIs and effect payments
in time, was launched.