Objectives

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Objectives

Mandatory Objectives

Four basic objectives are set out in the SIDBI Charter. They are:
 

  • Financing
  • Promotion
  • Development
  • Co-ordination
     

for orderly growth of industry in the small scale sector. The Charter has provided SIDBI considerable flexibility in adopting appropriate operational strategies to meet these objectives. The activities of SIDBI, as they have evolved over the period of time, now meet almost all the requirements of small scale industries which fall into a wide spectrum constituting modern and technologically superior units at one end and traditional units at the other

 

Development Outlook

The major issues confronting MSMEs are identified to be:
 

  • Technology obsolescence
  • Managerial inadequacies
  • Delayed Payments
  • Poor Quality
  • Incidence of Sickness
  • Lack of Appropriate Infrastructure and
  • Lack of Marketing Network

 

There can be many more similar issues hindering the orderly growth of MSMEs. Over the years, SIDBI has put in place financing schemes either through its direct financing mechanism or through indirect assistance mechanism and special focus programmes under its P&D initiatives. In its approach, SIDBI has struck a good balance between financing and providing other support services.

Co-ordination and Understanding

As an apex institution, SIDBI makes use of the network of the banks and state level financial institutions, which have retail outlets. SIDBI supplements the efforts of existing institutions through its direct assistance schemes to reach financial assistance to the ultimate borrowers in the small scale sector. Refinancing, bills rediscounting, lines of credit and resource support mechanisms have evolved over the period of time to route SIDBI's assistance through the network of other retail institutions in the financial system.

 

Improved levels of co-ordination for development of the small scale sector is also achieved through a system of dialogue and obtaining feedback from the representatives of institutions of small scale industries who are on the SIDBI's National Advisory Committee and Regional Advisory Committees.

SIDBI has entered into Memoranda of Understanding with many banks, governmental agencies, international agencies, research & development institutions and industry associations to facilitate a co-ordinated approach in dealing with the issues for development of small scale industries.

SIDBI's MOUs

Banks-(18)

  • Swiss Agency for Development and Co-operation
  • Small Industries Development Organisation
  • Auto Components Manufactures Association
  • Council for Scientific and Industrial Research
  • Asia and Pacific Centre for Transfer of Technology
  • United Nations Industrial Development Organisation
  • Confederation of Indian Industry
  • National Research Development Organisation
  • Government of India for channelising TREAD assistance
  • Small Enterprise Assistance Funds (SEAF) For setting up of SEAF India SME Equity Fund and for other capacity building initiatives for SMEs