SIDBI, Export Promotion Council to set up SPV for handicrafts sector

Small Industries Development Bank of India (SIDBI) is in the process of launching a special purpose vehicle (SPV) in association with the Export Promotion Council (EPC), in a bid to help the beleaguered Indian handicraft industry.

The new company would help in the development of handicraft clusters and provide onshore and offshore marketing linkages to these units.

The North Eastern Development Finance Corporation Limited (NEDFi) and EXIM Bank might also be included as the promoter companies, SIDBI Executive Director N K Maini told Business Standard.

“The SPV would provide a whole package to the handicraft sector and help in the industrial development of such clusters. The SPV would come into existence very soon and right now the usual formalities, including finalizing a nomenclature for the new company were being completed,” he added.

Meanwhile, SIDBI is in the process of expanding its footprint and is targeting a total of 100 branches by the end of fiscal 2010 in the country.

“We have set up a Rs 2,500 crore fund for non-collateral loans and credit guarantee up to Rs one crore to the micro, small and medium enterprises (MSME) to cope with the current slowdown and credit squeeze,” he added.

So far, SIDBI had processed almost 1,500 cases under the credit guarantee scheme.

Besides, SIDBI Venture Capital continues to provide capital to high risk projects in the MSME space.

Elaborating on the micro credit activities of SIDBI, he informed that a sum of Rs 2,000 crore would be disbursed by the end of March 2009 and so far almost 60 lakh beneficiaries had received micro credit.

In Uttar Pradesh, SIDBI had extended assistance worth Rs 2,700 crore to the MSMEs during the current fiscal 2008-09.

“Our SME Rating Agency of India Limited (SMERA) is acknowledged by banks to evaluate the credit worthiness of small units for providing credit subsidy,” Maini added.