SIDBI is implementing a World
Bank-led multi agency / multi activity Project on Financing and Development of SMEs.
While SIDBI has been assigned with the responsibility of implementing the project,
the Department of financial services, Ministry of Finance, Government of India is the nodal agency
for the same. The IBRD, Department for International development (DFID)
UK, KfW
Germany
and GTZ Germany are the international partners in the Project. The Project is aimed
at making SME lending an attractive and viable financing option as also facilitate
increased turnover and employment in the sector. In order to achieve its aims, the
Project, besides upgrading direct flow of credit to SMEs, addresses demand side
issues of credit and streamlining access to qualitative financial and non-financial
enterprise oriented services. This is being done with support of Technical Assistance
to be utilised for strengthening the credit information system, credit rating, credit
scoring, structuring of innovative products, capacity building of the participating
banks, policy and regulatory issues and promotion of market oriented business development
services for the sector.
The Project has three major components:
The details are as under
|
Lending Partner
|
Amount
in USD
|
Purpose
|
Tenor / Utilisation Period
|
|
International Bank for Reconstruction and Development
(IBRD)
|
120,000,000
|
Credit Facility
(USD 120 million)
|
15 Years
|
|
Kreditanstalt fur Wiederaufbau (KfW),
Germany
, Line of Credit
Technical Assistance
|
52,500,000
1,200,000
|
Credit Facility
(Euro 43.5 million)
Technical Component
(Euro 1 million)
|
12 Years
4 years
|
|
Department for International Development (DFID),
UK
|
37,000,000 |
Technical component
(GBP 20 million)
|
7 Years |
|
Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ),
GmbH
|
6,000,000
|
Technical Component in Kind
(Euro 5 million)
|
3 Years
(Phase I)
|
In order to ensure smooth implementation of the Project,
SIDBI has set up a dedicated Project Management Division at
New Delhi. The present PMD team comprises of officials from SIDBI. Placement of officials
from PFIs and need-based recruitment of specialists / experts on short to medium
term basis is envisaged under the Project.
|