SIDBI extends state-wise MSME support programme to 11 states; to design schemes, modify existing ones

Apart from Maharashtra, the bank has already appointed an agency that would look at setting up PMUs in 10 other states. (Express File Photo by Gopal Kateshiya)

Ease of Doing Business for MSMEs: In order to boost the MSME ecosystem in Maharashtra, SIDBI along with the state government will be setting up a Project Management Unit (PMU). The unit will help MSMEs through multiple schemes around credit support, stressed accounts etc. Signing MoU with Harshadeep Kamble, Secretary for small & medium industries and Development Commissioner (Industries) in Maharashtra, SIDBI said that PMU’s role will be to design schemes and programs in the areas of equity support, interest subvention, resolution of stressed MSMEs, and supporting them. The unit will also facilitate other need-based intervention based on an evaluation of the existing status of MSMEs.

Apart from Maharashtra, the bank has already appointed an agency that would look at setting up PMUs in 10 other states, according to Rao. These states would be Assam, New Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand, Gujarat, Karnataka, Andhra Pradesh and Tamil Nadu.

The PMU will analyse the existing framework of schemes and initiatives etc., targeted towards MSMEs and would suggest modifications, if required, in order to improve efficacy and removal of bottlenecks. “We have already initiated the process of collaborating with state governments for more focused engagement in various forms for the upliftment of MSMEs,” said V Satya Venkata Rao, Deputy MD, SIDBI.

The initiative by SIDBI is aligned to the UK Sinha Committee’s expectations on MSMEs for driving engagement of SIDBI with state governments to promote and develop Indian MSMEs. The PMU will also set-up process for supporting MSMEs to get onboard digital platforms such as PSBLoansIn59Minutes, listing on stock exchanges, e-commerce platforms including the public procurement portal Government e-Marketplace etc. SIDBI said that the PMU will also establish a framework to understand the impact of such interventions on MSMEs would also share inputs for policy advocacy.

Also read: Economic woes to continue in Q2? MSME credit falls in July, rises for this crucial sector instead

In its latest efforts towards supporting small businesses, SIDBI’s credit guarantee fund trust for micro and small enterprises (CGTMSE), which operates the credit guarantee scheme for MSEs, launched an online portal called Udaan. The portal would help MSEs get provisional guarantee certificate to avail collateral-free loans from SIDBI’s member lending institutions (MLIs) including banks and non-banking financial companies. Currently, 35 MLIs have been onboarded on the portal even as there is no upfront fee or payment for these MLIs to list themselves on Udaan.

Also in July, SIDBI had launched online knowledge portal called MSMESaksham in partnership with TransUnion CIBIL to help MSMEs in “seamless and quick access to finance” and “managing their credit obligations,” SIDBI had said. “The most difficult part for MSMEs is access to credit and credit-linked information. They should have the right information to access credit as MSMEs mostly suffer from information asymmetry. We are trying to solve this problem to make them loan ready,” Subodh Kumar, General Manager, SIDBI had told Financial Express Online.