Sidbi to spend Rs 92.4 cr of DFID aid on MFIs

New Delhi, March 23 | Updated: Mar 24 2005, 05:30am hrs
The Small Industries Development Bank of India (Sidbi) will spend 68% of the 16.51 million received as grant for technical co-operation from the Department for International Development (DFID), United Kingdom, towards enhancing the capacity of micro-finance institutions (MFIs) and providing equity support to them, chairman N Balasubramaniam told FE. This amounts to almost Rs 92.4 crore at the current pound rate.

The programme titled National Micro Finance Support Project (MFSP) will utilise 14% of the grant for policy advocacy, research and product innovation in the small-scale sector. These funds of about Rs 19.02 crore will be used to provide support to micro-finance networks for information dissemination as well as for the impact assessment programme of the micro-credit programme of Sidbi Foundation.

Six percent of the funds, which is equivalent to Rs 8.15 crore, will go towards capacity building of Sidbi. Another 5% (Rs 6.8 crore) will be used for capacity building of formal financial insitutions (FFIs), commercial banks, co-operative banks and regional rural banks. This also includes a provision for engaging national and international consultants for the partner FFIs. There are two micro-credit training insitutes at Ahmedabad and Madurai which will be given about 10% for demand driven courses run by them. Thus, Sidbi will spend about Rs 13.6 crore for micro-credit training.