The Reserve Bank of India, on the advice of the Government of India, has created a particular low-cost funding avenue for State/UT governments with SIDBI. The said Fund viz. SIDBI Cluster Development Fund (SCDF) has supported State/ UT Governments through soft loans to develop/create/upgrade various infrastructure facilities in & around MSME Clusters. In the first year of entire operations under SCDF, SIDBI has assisted a wide variety of projects for MSME cluster infrastructure development emanating from varied departments of several State Governments viz: Industries, MSME, Public Works, Power, Education/Skill, etc. and having been prioritized by respective State/UT Finance Departments. SIDBI has been organizing regular learning / cross-learning events, both online and physically, for the benefit of all stakeholders, including Government officials.
In SIDBI’s interaction with various State/ UT Governments, one main roadblock emerged: the lack of exposure and guidance for undertaking infrastructure development projects. Against this backdrop, a one-day thought processing workshop for State/ UT Government officials having the main essence of “Making Future Ready Sustainable MSME Cluster Infrastructure was organized on 15th April 2023 at Goa. The workshop was attended by officials from 24 States/UTs who deliberated on topics of crucial importance for the development of the Nation by creating future-ready, sustainable infrastructure for MSMEs and entrepreneurs to grow.
Hon’ble Minister for Industries Government of GOA, Shri Mauvin Godino, graced the workshop as Guest of Honour; in his address, he emphasized the development of Environment conscious Infrastructure and Industrial growth for a State like Goa, rich in biodiversity. The Hon’ble minister also spoke about enhancing the competitiveness of MSMEs through proper hand-holding by Institutions like SIDBI and complemented SIDBI for its efforts in varied domains to develop the MSME ecosystem, which have started showing its results on the ground. He suggested that SIDBI further deepen its ties with State Government to further these initiatives. Shri Godino emphasized finding Industrial growth solutions by promoting local micro industries like exporting famous Goan food items viz Vivenka.
The keynote was delivered by Shri S. Ramann CMD, SIDBI, who emphasized the need to keep vibrancy in enterprise development models. He mentioned that SIDBI has prioritized cluster development themes but can only evolve sustainable strategy in coordination with stakeholders, the key being state governments. He called upon all stakeholders to walk together for the overall development of the MSME ecosystem in the Country.
Earlier during the welcome address, Shri Sudatta Mandal, DMD SIDBI, illustrated SIDBI’s role in strengthening the enterprise value chain with various offerings like state collaborative enhanced guarantee coverage, State-specific funds to support start-ups, availability of an array of concessional credit products offered by SIDBI towards Greening of MSMEs.
Shri V. Satya Venkata Rao, DMD SIDBI, illustrated the Bank’s role in strengthening the MSME ecosystem and comprehensive coverage of the SCDF scheme. He called upon States to formulate strategies for planned cluster development to reduce the regional imbalance.
The sessions in the workshop included state-specific offerings to state/UT governments and a panel discussion on experience sharing by State Government officials.
Shri Ashish Kumar Singh IAS, Additional Chief Secretary, Accounts and Treasury- Finance Department Maharashtra Tourism / Service sector as an Industry shared his experience creating infrastructure in the service sector, i.e., Tourism in towards World and its way forward.
Smt S Madhumati IAS, Managing Director of Tamil Nadu Small Industries Development Corporation, spoke about ways to cater to the growing demand for modern industrial infrastructure in industrially developed states. She also shared various projects undertaken by the State Govt. in the State of Tamil Nadu under SCDF.
Shri Pravimal Abhishek Polumatla, IAS Managing Director, Goa Industrial Development Corporation, shared his views on investing in cluster infrastructure and creating appropriate ecosystems for existing and new clusters.
It may be mentioned that SIDBI is the principal Development Financial Institution for the promotion, financing, and development of Micro, Small, and Medium Enterprises (MSMEs) and for coordinating the functions of financial institutions engaged in similar activities. With the aim of Holistic development of the MSME ecosystem in Countryntry and under the guidance of recommendations emanating from the report of the Expert Committee on MSMEs (Chairman: Shri U K Sinha), SIDBI is focusing on engagements with State Governments/ UTs in domains of MSME development and promotion.
SIDBI has set up an exclusive Cluster Development Vertical since August 05, 2021. The purpose of the said fund is holistic, covering nearly all segments of MSME cluster development falling under three broad categories that can be covered under SCDF viz (1) Industrial and Agri-allied sectors in the MSME eco-space, (2) Social Sector projects in and around MSME clusters and (3) Connectivity to MSME Clusters. The support will be offered by SIDBI to State Governments/ UTs as a soft loan for a tenure of 7 years. Since the launch of the SCDF scheme, necessary handholding has been provided to State Governments for understanding the scheme modalities. Till Date, ` 5546.50 crores has been sanctioned to 10 States and 1 UT towards 91 projects (64 greenfield projects and 27 brownfield projects). It is estimated that 84,127 MSMEs will benefit, and direct employment of 5,81,873 and indirect employment of 7,31,397 will be created from assisted projects.