SIDBI sanctions 138.57 crore for development of SMEs

Kozhikode, Oct 16 (UNI) The Small Industries Development Bank of India (SIDBI) sanctioned Rs 138.57 crore and disbursed Rs 130.71 crore in the first half of the 2006 fiscal for the development of Small and Medium Enterprises (SMEs) as against Rs 61.20 crore and Rs 62.58 crore respectively, in the corresponding period last year.

Talking to reporters, Zonal Manager K M Nair today said here, this had indicated maintenance of consistency in its all round growth. The SIDBI was contemplating alliances with commercial banks located at identified clusters as part of its plan to expand lending to SME in the state, he added.

This would expand the outreach of banks and improve credit flow to SME sector, he said.

Mr Nair said, joint apprisal such as assessment of the projects and single documentation would result in reducing the transaction cost of disensing credit to SMEs by both SIDBI and commercial banks.

He said SIDBI had increased quantum of loan from Rs 1 crore to Rs 5 crore to small scale and Rs 10 crore to medium scale sectors.

In order to create awareness about its various schemes, the SIDBI in association with Kerala State Small Industries Association (KSSIA) held an interactive session with industrialists here.

As many as 100 small and medium entrepreneurs took part in the session which was addressed by KSSIA President M Khalid.

As part of its expansion programme, the SIDBI which was presently operating from Kochi, would open a new office here to cater to the needs of small and medium enterprises in the Malabar region, he said.

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