Guwahati: Small Industries Development Bank of India (SIDBI) is increasing its direct financing and infrastructure assistance in Assam like never before, aiming to develop a more inclusive and business-friendly ecosystem. The bank has approved over Rs 42.72 crore under its Cluster Development Fund. It is also considering proposals worth Rs 272 crore to enhance industrial infrastructure, generate employment, and improve market access for small enterprises.
In an exclusive interview with Business North East (BNE), SIDBI Deputy General Manager Pradeep Kumar Nath shared that the bank is also increasing its microfinance reach, providing lower interest rates and sector-specific financing to enable small and nascent entrepreneurs in the state.
SIDBI has been a vital force in developing entrepreneurship and industrial development in Assam through different development initiatives. Since its inception, it has been actively running skill upgradation initiatives, entrepreneurship development programs, and cluster outreach schemes in the state.
Over the last five years, SIDBI has sanctioned approximately Rs 116 lakh to trusts, societies, and NGOs to implement these programs. These efforts have led to the establishment of more than 350 enterprises, generating sustainable employment opportunities for Assam’s youth.
SIDBI's strategic interventions have gone a long way in framing Assam's MSME ecosystem. Its flagship program, The SIDBI Cluster Development Fund (SCDF), was inaugurated in December 2021 with a Rs 7,000 crore corpus to offer low-cost funding for infrastructure building in MSME clusters. It extends to industrial and agri-allied sectors, social initiatives, and connectivity enhancements to ensure greater accessibility and business feasibility.
Nath revealed that SIDBI has also been working actively with Assam-based microfinance institutions (MFIs) under the India Microfinance Equity Fund (IMEF) scheme to improve financial inclusion. The bank has extended financial assistance to organisations like Nightingale Finvest Pvt. Ltd. (Rs 1.50 crore) and Grameen Development and Finance Private Limited (Rs 21 crore).
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Under the direct lending sector, SIDBI credit disbursement in Assam has gone incredibly up from just Rs 2 crore (3 customers) during FY 2019 to Rs 29 crore (18 customers) up to FY 2024 and with the anticipation to grow up to Rs 40 crore by FY 2025.
Through its PRAYAAS programme, SIDBI collaborated with Annapurna to disburse monetary support of Rs 50,000 to Rs 5,00,000 to informal micro-enterprises (IMEs), especially women entrepreneurs.
"USP of SIDBI funding is that our interest rates are slightly lower than market rates, and our services are sector-focused," explained Nath. He added that the bank understands the nature and requirements of industries like tea, handicrafts, food processing and downstream oil, and that helps us offer financial solutions accordingly.
Apart from funding and development assistance, SIDBI has also made CSR investments in Assam for enhanced healthcare infrastructure, once again stressing its thrust for sustainable economic growth in the region.
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