The entrepreneur-driven small-scale sector forms
the backbone of our industry. I am deeply committed to
strengthening this sector. The following set of measures will
be put in place immediately.
First, the Small Industries Development Bank
of India (SIDBI) has an unutilised corpus of
about Rs.175 crore in its Technology
Development and Modernisation Fund Scheme. I
am now proposing that SIDBI should refinance
the State Financial Corporations (SFCs) and
commercial banks for modernisation projects
upto Rs.50 lakh. This will decentralise
decision-making to the advantage of small-
scale units seeking modernisation funds from
SFCs and banks.
Second, refinance is now provided for the
Single Window Scheme of SFCs etc. for
composite loans upto Rs.50 lakh. I am
doubling this ceiling to Rs.100 lakh.
Third, SIDBI will participate in venture
capital funds set up by public sector
institutions as well as private companies
upto 50% of the total corpus of the fund,
provided such a fund is dedicated to the
financing of small-scale industry.
Fourth,in order to encourage a larger number
of small scale units to seek ISO 9000
certification of quality, lending
institutions will be permitted to lend to the
ultimate borrowers on the same terms and
conditions as SIDBI's direct lending scheme.
SIDBI will provide refinance assistance to
these lending institutions.