Ease of Doing Business for MSMEs: Setting up PSUs in different states was aligned to the UK Sinha Committee’s expectations for driving engagement of SIDBI with state governments to promote and develop local MSMEs.
Emergency Credit Line Guarantee Scheme (ECLGS) and the subordinate debt scheme were the key post-Covid credit measures taken by the government to support pandemic-hit small businesses.
Ease of Doing Business for MSMEs: Small Industries Development Bank of India (SIDBI) — the principal financial institution focusing on micro, small, and medium enterprises (MSMEs) has expanded its MSME support programme to establish a ‘project management unit’ (PMU) to Andhra Pradesh after Maharashtra, Tamil Nadu, Assam, etc. Under an agreement with the government of Andhra Pradesh, SIDBI will help develop the local MSME ecosystem. “Role of PMU will be to design schemes/programmes in the areas of equity support, interest subvention, resolution of stressed MSMEs, supporting MSME entrepreneurs and facilitate other need-based intervention based on evaluation of the existing status of MSMEs,” SIDBI said on Thursday.
The tie-up with the state government is part of SIDBI’s programme to establish such PMUs in 11 states including Gujarat, Odisha, Maharashtra, Tamil Nadu, New Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand, and Karnataka apart from Andhra Pradesh to support MSMEs in respective states. The PMU is also expected to study the existing local framework of schemes and initiatives etc., focused on MSMEs and suggest changes, if required, to help boost the efficiency of enterprises and remove bottlenecks. Setting up PSUs in different states was aligned to the UK Sinha Committee’s expectations for driving engagement of SIDBI with state governments to promote and develop local MSMEs.
“We have already initiated the process of collaborating with state governments for more focused engagement in various forms for the upliftment of MSMEs,” V Satya Venkata Rao, Deputy MD, SIDBI had said while partnering with the Maharashtra government in September last year for setting up of a PSU in the state. The PMUs in different states will also be looking at establishing processes to help MSMEs adopt digital platforms including PSBLoansIn59Minutes, listing on stock exchanges, GeM portal, etc.
SIDBI had posted a 9 per cent net profit growth to Rs 630 crore in Q3 FY21 from Rs 578 crore in Q3 FY20 despite the Covid impact on lending to MSMEs. The non-interest income for the bank was up 16.7 per cent to Rs 154 crore in Q3 FY21 vis-à-vis Rs 132 crore in the year-ago period. The net interest income grew 3 per cent to Rs 840 crore in Q3 FY21 from Rs 816 crore in Q3 FY20.