Commensurate 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.
• SIDBI Venture Capital Limited, a wholly owned subsidiary of SIDBI, was formed to manage the NFSIT.
• 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.