Small Industries Development Bank of India (SIDBI)

Entrepreneurship Development

Small Industries Development Bank of India (SIDBI)

With a view to ensuring large flow of financial and non – financial assistance of the small – scale sector, the Government of India announced in the budget for 1988- 89, its decision to establish Small Industries Development Bank of India (SIDBI) as a subsidiary of IDBI. The SIDBI Act was passed by the parliament in October 1989 and the bank commenced its operations from April 2, 1990. The immediate thrust of SIDBI will be on:

  1. Initiating steps for technological up gradation and modernization of existing units;
  2. Expanding the channels for marketing the products of SSI sector in domestic and overseas markets; and
  3. Promotion of employment oriented industries especially in semi – urban area to create more employment opportunities and there by checking migration of population to higher order urban centers and metropolitan cities.
Financial Resources of SIDBI

The authorized capital of SIDBI is Rs.250 cores with an enabling provision to increase it to Rs. 1,000 cores. As provided in the Act, SIDBI has taken over the outstanding portfolio of IDBI relating to small – scale sector as of March 31, 1990. The value of such assets taken over by SIDBI is over Rs. 4,000 cores.

Financial Assistance by SIDBI

The financial assistance by SIDBI to the small – scale unit scattered throughout the country is channelized through the existing credit delivery system comprising State Financial Corporations, State Industrial Development Corporations, Commercial Banks, Cooperative Banks and Regional Rural Banks. The total financial assistance sanctioned by SIDBI in 1990 – 91 was Rs. 1,629 cores of which Rs. 1,508 cores were disbursed.

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Last modified: Friday, 3 February 2012, 9:52 AM