[vc_row][vc_column][vc_column_text]PIA organized an Interaction meeting with Sri A.C. Sahu, GM, SIDBI regarding various schemes available for MSMEs on March 22.
Welcoming the Chief Guest, PIA President Sri R. Krishnamurthy, remarked that SIDBI had been playing a very important role in the development of the 
MSME sector, especially over the past few years.” We wish to inform Sri Sahu that PIA will also enlighten its Member-Industries as well as small entrepreneurs in Peenya and surrounding Industrial Estates about the various Schemes of SIDBI from which they stand to benefit a lot,” he said.
Addressing the participants, Sri Sahu, GM, SIDBI dwelt at length on the business strategies adopted by SIDBI in empowering the micro and small entrepreneur in particular, ways and means to address the financial and non-financial gaps in MSME eco-system, the different ways of financial support provided by SIDBI to MSMEs like Indirect/refinance to banks/ Financial Institutions for onward lending to MSMEs and direct finance in the niche areas like risk capital, sustainable finance, receivable financing, service sector financing, etc.
Sri Sahu also explained the SIDBI’s ‘Credit Plus’ approach, under which, besides credit, SIDBI supports enterprise development, skill up-gradation, marketing support, cluster development, technology modernization, etc, as part of its core efforts in growing the MSME sector.
Team PIA viz. the President and Office Bearers, MCMs and Invitees felicitated Sri H.V. Raghuram, Additional Director, DIC, GOK on the occasion.
Office Bearers, PPs, and Managing Council Members, Special Invitees and entrepreneurs from Peenya Industrial Area and surrounding Industrial Estates took part in the interaction.
An overview of the Schemes of SIDBI for MSMEs is given below for the ready reference of PIA Members:
The SIDBI has several Subsidy Schemes for Specific Industries, the most important of which for MSMEs are:
Scheme for Extension of Financial Assistance for Generator Set/Diesel Engine: The purpose of the scheme is to give one time subsidy to fibre/ curled coir production units in the brown fibre sector to carry out production at periods of power cut/ low voltage and to ensure supply of brown fibre and curled coir to meet the requirements of rubberized coir products, coir rope, yarn and mats and matting sectors.
The quantum of subsidy for one unit will be 25% of the cost of generator set subject to a maximum of Rs.50,000/-. This will be a one time financial assistance and will be granted on the basis of expenditure incurred by the unit.
SIDBI READY TO FUND FOREIGN BUYS OF SMALL UNITS
SIDBI is ready to fund small and medium companies to acquire foreign assets. SIDBI will be funding the acquisition value plus the facilitation charges. The money will come from the Rs 600-crore India Opportunity Fund that SIDBI have just launched”.
SIDBI MARKETING FUND FOR WOMEN (MFW)
The assistance under the Fund is available to women entrepre-neurs and organisations involved in marketing of products manufactured by women entrepreneurs to increase their reach, both in domestic and international markets
Eligible Borrowers
SSI units managed by women entrepreneurs.
Marketing-related service providers Organizations/Units in the corporate/Co-operative/ NGO sectors which are providing support services like internet, trade related information, advertising, marketing research, warehousing, common testing centres, etc. to enterprises owned and managed by women.
* Leather Industry – Integrated Development of Leather Sector (IDLS): The scheme is aimed at enabling existing tanneries, footwear, footwear components and leather products units to upgrade leading to productivity gains, right-sizing of capacity, cost cutting, design and development simultaneously encouraging entrepreneurs to diversify and set up new units.
The financial assistance under the Scheme will be investment grant to the extent of 30% of cost of plant and machinery for SSI and 20% of cost of plant and machinery for other units (i.e. non small scale units) subject to ceiling of Rs.50 lakh for technology up gradation /modernization and/or expansion and setting up a new unit. The rate of assistance would be @ 20% for all units (both SSI and Non-SSI) above Rs.50 lakhs subject to ceiling of Rs.2 crore.
The nodal agency for release of assistance, monitoring and interface and coordination with FIs, Banks and the Government is SIDBI.
* Textile Industry – Technology Up-gradation Fund Scheme (TUFS): Introduced by the Ministry of Textiles for textiles and jute industry in April 1999 to facilitate induction of state-of-the- art technology by the textile units.
The benefits under the scheme include:
5% interest reimbursement of the normal interest charged by the lending agency on RTL, or
5% exchange fluctuation (interest & repayment) from the base rate on FCL, or
15% credit linked capital subsidy for SSI sector, or
20% credit linked capital subsidy for powerloom sector (An option for ‘front ended’ subsidy provided w.e.f. 1st October, 2005), or
5% interest reimbursement plus 10% capital subsidy for specified processing machinery.
* Food Processing Industry – Scheme for Technology Up-gradation/ Establishment/ Modernization for Food.
Processing Industries:
This Scheme covers the following activities:
Setting up/ expansion / moderni-zation of food processing industries covering all segments viz fruits & vegetable, milk product, meat, poultry, fishery, oil seeds and such other agri-horticultural sectors leading to value addition and shelf life enhancement including food flavours and colours, oleoresins, spices, coconut, mushroom, etc.
The assistance is in the form of grant subject to 25% of the plant & machinery and technical civil work subject to a maximum of Rs. 50 lakh in General Areas and 33.33% upto Rs. 75 lakh in Difficult Areas.[/vc_column_text][/vc_column][/vc_row]
