SIDBI Partners with Government of Andhra Pradesh for MSME Ecosystem Development in State
Small Industries Development Bank of India (SIDBI), the leading financial institution engaged in the promotion, financing and development of micro, small and medium enterprises (MSMEs), has entered into a Memorandum of Understanding with the Government of Andhra Pradesh . develop the MSME ecosystem in the state. The MoU was signed by Shri JVN Subramanyam IAS, Director of Industries, Trade and Export Promotion, Government of Andhra Pradesh and Shri Sanjay Jain, Managing Director, Regional Director, Small Industries Development Bank of India ( SIDBI), Hyderabad, in the presence of Shri Mekapati Goutham Reddy, Minister of Industry, Govt. from Andhra Pradesh.
Under the agreement, a Project Management Unit (PMU) will be deployed by SIDBI with the government of Andhra Pradesh. The role of the PMU will be to design schemes / programs in the areas of capital support, interest subsidy, resolution of stressed MSMEs, support to MSME entrepreneurs and facilitate other interventions based on them. needs and based on the assessment of the existing status of MSMEs. The PMU will study the existing framework of programs, interventions, initiatives, projects, etc. which are currently available for the benefit of / intended for state MSMEs and will propose modifications, where appropriate, with the aim of improving efficiency and removing bottlenecks.
On this occasion, Shri V. Satya Venkata Rao, Deputy Managing Director of SIDBI said: “In line with our programmatic approach to foster closer cooperation with state government, we have started with cluster outreach programs. with several states. We have also proposed a Cluster Development Fund to support the infrastructural aspects of cluster development in various states in preparation for AatmaNirbhar Bharat. The establishment of PMUs in 10 states so far aims to place an outsourced team of experts for more focused engagement in various forms leading to a stronger MSME ecosystem. Embibinggood practices, rejuvenate existing programs and policies and enable a more responsive ecosystem will be the target of our collaboration. “
The PMUs already in place in 10 states have already completed the compilation of specific programs at central and state level targeting beneficiaries of the MSME sector. The PMU also carries out an analysis of the existing industrial policies of these states to offer suggestions apart from other suggestions and interventions at the political level.
This development initiative is aligned with the expectations defined by the British Sinha committee on MSMEs set up by RBI. It envisions a more focused engagement of SIDBI with state governments for the promotion and development of MSMEs. PMU will also prepare the process of supporting MSMEs in the state for their integration on digital platforms such as PSBLoansIn59Minutes, stock exchange listing, e-commerce platforms such as Government e-Marketplace, etc. At the same time, the PMU will also engage in the repository mapping of good practices and guidelines both inside and outside the State and facilitate the adoption of good practices. It will create a framework to assess the impact of interventions carried out for the benefit of MSMEs and will also provide inputs for policy advocacy.