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What Are The Objectives of SIDBI?

SIDBI was established in 1989 as a wholly owned subsidiary of IDBI to promote, finance, and develop small-scale industries in India. It took over responsibility for administering the Small Industries Development Fund and National Equity Fund from IDBI. SIDBI provides assistance to small-scale industries through banks and financial institutions with the objectives of technological upgradation, expanding markets, and promoting employment. Its major functions include refinancing loans, discounting bills, extending seed capital, granting direct assistance and refinance loans, and providing services like factoring and leasing to small units.

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173 views

What Are The Objectives of SIDBI?

SIDBI was established in 1989 as a wholly owned subsidiary of IDBI to promote, finance, and develop small-scale industries in India. It took over responsibility for administering the Small Industries Development Fund and National Equity Fund from IDBI. SIDBI provides assistance to small-scale industries through banks and financial institutions with the objectives of technological upgradation, expanding markets, and promoting employment. Its major functions include refinancing loans, discounting bills, extending seed capital, granting direct assistance and refinance loans, and providing services like factoring and leasing to small units.

Uploaded by

Upneet Sethi
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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SIDBI

Small Industries Development Bank of India (SIDBI) was established as wholly owned subsidiary of Industrial Development Bank of India (IDBI) under the small Industries Development of India Act 19 9! It is the principal institution for promotion" financin# and development of industries in the small$scale sector! It also coordinates the functions of institutions en#a#ed in similar activities! %or this purpose" SIDBI has taken over the responsibility of administratin# Small Industries Development %und and &ational '(uity %und from IDBI! )apital! SIDBI started its operations from April 199* with an initial authorised capital of +s! ,-* crore" which could be increased to +s! 1*** crore! It also took over the outstandin# portfolio of IDBI relatin# to small scale sector held under Small Industries Development %und as on .arch /1"199* worth over +s! 0*** crore!

1hat are the ob2ectives of SIDBI3


In the settin# up of SIDBI" the main purpose of the #overnment was to ensure lar#er flow of assistance to the small$scale units! 4o meet this ob2ective" the immediate thrust of the SIDBI was on the followin# measures5 (i) initiatin# steps for technolo#ical up#radation and modernisation of e6istin# units7 (ii) e6pandin# the channels for marketin# the products of the small scale sector7 and (iii) promotion of employment$oriented industries" especially in semi$ urban areas to create more employment opportunities and thereby checkin# mi#ration of population to urban areas!

1hat are the functions of SIDBI3


SIDBI provides assistance to the small$scale industries sector in the country throu#h the e6istin# bankin# and other financial institutions" such as" State %inancial )orporations" State Industrial Development )orporations" commercial banks" cooperative banks and ++Bs! etc! 4he ma2or functions of SIDBI are #iven below5 (i) It refinances loans and advances provided by the e6istin# lendin# institutions to the small$scale units! (ii) It discounts and rediscounts bills arisin# from sale of machinery to and manufactured by small$scale industrial units! (iii) It e6tends seed capital8soft loan assistance under &ational '(uity %und" .ahila 9dyam &idhi and .ahila :ikas &idhi and seed capital schemes!

(iv) It #rants direct assistance and refinance loans e6tended by primary lendin# institutions for financin# e6ports of products manufactured by small$scale units! (v) It provides services like factorin#" leasin#" etc! to small units! (vi) It e6tends financial support to State Small Industries )orporations for providin# scarce raw materials to and marketin# the products of the small$scale units! (vii) It provides financial support to &ational Small Industries )orporation for providin#7 leasin#" hire purchase and marketin# help to the small$scale units!

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