--| SIDBI |--

Domain of Service

The Small Scale Industries (SSIs) sector is a vibrant and dynamic sector of the Indian economy. The sector presently occupies an important place and its contribution in terms of generation of employment, output and exports is quite significant. For the purpose of defining an SSI unit in India, the original purchase value of the plant and machinery installed in a unit has been adopted as the sole criterion. The ceiling on investment in plant and machinery has undergone periodical change from time to time since after the introduction of this concept. For a unit to be considered as SSI unit, the current ceiling on investment in plant and machinery is Rs. 10 million (effective December 24, 1999). For a tiny unit, the said ceiling is Rs. 2.5 million. The limit in select sub-sectors, such as, knitwear, hosiery and hand-tools is Rs.50 million. The Small Scale Industries sector including tiny units, comprises the domain of SIDBI's business. Besides, the projects in the services sector with total cost upto Rs.250 million are also taken within the area of SIDBI's operations. The Bank also finances industrial infrastructure projects for the development of SSI sector.

Channels of Assistance

SIDBI's financial assistance to small scale sector have three major dimensions:

Indirect assistance to primary lending institutions (PLIs);

Direct assistance to small units; and

Development and Support Services

Indirect Assistance

SIDBI's Schemes of indirect assistance envisages credit to SSIs through a large network of 913 PLIs spread across the country with a branch network of over 65000. The assistance is provided by way of refinance, bills rediscounting, and resource support in the form of short term loans/Line of Credit (LoC) in lieu of refinance, etc.