National Equity Fund Scheme
which provides equity support to small entrepreneurs setting up projects
in Tiny Sector.
Technology Development &
Modernisation Fund Scheme for providing finance to existing SSI units
for technology upgradation/modernisation.
Single Window Scheme to provide
both term loan for fixed assets and loan for working capital capital through
the same agency.
Composite Loan Scheme for
equipment and/or working capital and also for worksheds to artisans, village
and cottage industries in Tiny Sector.
Mahila Udyam Nidhi (MUN) Scheme
provides equity support to women entrepreneurs for setting up projects
in Tiny Sector.
Scheme for financing activities
relating to marketing of SSI products which provides assistance for
undertaking various marketing related activities such as marketing research,
R&D, product upgradation, participation in trade fairs and exhibitions,
advertising branding, establishing distribution networks including show
room, retail outlet, wears-housing facility, etc.
Equipment Finance Scheme
for acquisition of machinery/equipment including Diesel Generator Sets
which are not related to any specific project.
Venture Capital Scheme to
encourage SSI ventures/sub- contracting units to acquire capital equipment,
as also requisite technology for building up of export capabilities/import
substitution including cost of total quality management and acquisition
of ISO-9000 certification and for expansion of capacity.
ISO 9000 Scheme to meet the
expenses on consultancy, documentation, audit, certification fee, equipment
and calibrating instruments required for obtaining ISO 9000 certification.
Micro Credit Scheme to meet
the requirement of well managed Voluntary Agencies that are in existence
for at least 5 years; have a good track record and have established network
and experience in small savings-cum-credit programmes with Self Help Groups
(SHGs) individuals.
New Schemes
(i) To enhance the export capabilities
of SSI units.
(ii) Scheme for Marketing Assistance.
(iii) Infrastructure Development
Scheme.
(iv) Scheme for acquisition of ISO
9000 certification.
(v) Factoring Services and
(vi) Bills Re-discounting Scheme
against inland supply bills of SSIs.
Major schemes
1. Technology Development & Modernisation Fund |
SIDBI has set up Technology Development
& Modernisation Fund (TDMF) scheme for direct assistance of small sale
industries to encourage existing industrial units in the sector, to modernise
their production facilities and adopt improved and updated technology so
as to strengthen their export capabilities. Assistance under the scheme
is available for meeting the expenditure on purchase of capital equipment
acquisition of technical know-how, upgradation of process technology and
products with thrust on quality improvement, improvement in packaging and
cost of TQM and acquisition of ISO-9000 series certification.
SIDBI in July 1996 had permitted
SFCs and promotional banks to grant loans for modernisation projects costing
upto Rs. 50 lakhs. The Coverage of the TDMF scheme has been enlarged w.e.f.
1.9.1997. Non-exporting units and units which are graduating out of SSI
sector are now eligible to avail assistance under this scheme.
National Equity Fund (NEF) under Small
Industries Development Bank of India (SIDBI) provides equity type assistance
to SSI units, tiny units at five per cent service charges. The scope of
this scheme was widened in 2000-01 raising the limit of loan from Rs. 6.25 lakhs to Rs. 10 lakhs and project cost limit from Rs. 25 lakhs to Rs. 50 lakhs.
(a) The following are eligible for assistance under the scheme:-
New projects in tiny and small scale sectors for manufacture, preservation or processing of goods irrespective of the location (except for the units in Metropolitan areas).
Existing tiny and small scale industrial units and service enterprises as mentioned above (including those which have availed of NEF assistance earlier), undertaking expansion,
modernisation, technology upgradation and diversification irrespective of location (except in Metropolitan areas).
Sick units in the tiny and small scale sectors including service enterprises as mentioned above, which are considered potentially viable, irrespective of the location of the
units (except for the units in Metropolitan areas).
All industrial activities and service activities (except Road Transport Operators).
(b) Project cost (including margin money for working capital) should not exceed Rs. 50 lakhs in the case of new projects in the case of existing units and service enterprises, the outlay
on expansion/modernisation/technology upgradation or diversification or rehabilitation should not exceed Rs. 50 lakhs per project.
(c) There is no change in the existing
level of promoters' contribution at 10% of the project cost. However, the
ceiling on soft loan assistance under the Scheme has been enhanced from
the present level of 15% lakh per project to 25% of the project cost subject
to a maximum of Rs. 10 lakhs per project.
(d) 30% of the investment is earmarked for tiny units.
