SIDBI's Assistance

(i) Tiny Units - about 89.2 per cent of the number of projects assisted under Refinance Scheme during 1996-97 were tiny, receiving assistance upto Rs. 5 lakh per project. The sanctions for such projects accounted for 39.6% of the total amount of sanctions in 1996-97 as against 36.0% during the previous year.

(ii) Women entrepreneurs - under various schemes assistance amounting to Rs. 19.07 crores was given to 1067 women entrepreneurs during 1996-97.

(iii) Backward areas - during 1996-97, projects emanating from backward areas received assistance to the tune of Rs. 775 crores of sanction which accounted for 37% of total assistance under Refinance Scheme of SIDBI.

Measures to simplify Rules/Regulations

To fill the gaps in the existing structure of credit delivery mechanism to the small scale sector, Small Industries Development Bank of India (SIDBI) keeps on effecting simplification of procedures, liberalisation of new schemes and introduction of new schemes. 

- Endeavour of SIDBI is to ensure that no worthwhile proposal is denied credit for want of funds. 
- Norms laid down by Reserve Bank of India and Government of India are followed by SIDBI for granting assistance to SSI units. 

Liberalisation effected 

(i) Enhancement in the ceiling on loan amount of the Composite Loan Scheme to Rs. 2 lakh from the earlier ceiling of Rs. 50,000/- to ensure timely availability of term loan and working capital to the small units. The scheme was also liberalised to include units in all areas other than metropolitan areas.

(ii) Scope of Technology Development & Modernisation Fund Scheme and Refinance Scheme for Technology Development & Modernisation has been expanded to cover non-exporting SSIs/ancillary units graduating out of SSI sector for assistance under the scheme.

(iii) Scope of Single Window Scheme has been enlarged to cover modernisation, technology upgradation in addition to new SSI units. Project outlay under the scheme has been gradually raised from s. 30 lakhs to Rs. 100 lakhs. Simultaneously, the sub-limits for working capital and term loan components has been done away with.