Ease of Doing Business for MSMEs: Small Industries Development Bank of India (SIDBI) — the principal monetary institution focusing on micro, little, and medium enterprises (MSMEs) has expanded its MSME assistance programme to establish a ‘project management unit’ (PMU) to Andhra Pradesh just after Maharashtra, Tamil Nadu, Assam, and so on. Under an agreement with the government of Andhra Pradesh, SIDBI will assistance create the neighborhood MSME ecosystem. “Role of PMU will be to design schemes/programmes in the areas of equity support, interest subvention, resolution of stressed MSMEs, supporting MSME entrepreneurs and facilitate other need-based intervention based on evaluation of the existing status of MSMEs,” SIDBI stated on Thursday.
The tie-up with the state government is aspect of SIDBI’s programme to establish such PMUs in 11 states like Gujarat, Odisha, Maharashtra, Tamil Nadu, New Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand, and Karnataka apart from Andhra Pradesh to assistance MSMEs in respective states. The PMU is also anticipated to study the current neighborhood framework of schemes and initiatives and so on., focused on MSMEs and recommend adjustments, if needed, to assistance enhance the efficiency of enterprises and take away bottlenecks. Setting up PSUs in various states was aligned to the UK Sinha Committee’s expectations for driving engagement of SIDBI with state governments to market and create neighborhood MSMEs.
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“We have already initiated the process of collaborating with state governments for more focused engagement in various forms for the upliftment of MSMEs,” V Satya Venkata Rao, Deputy MD, SIDBI had stated even though partnering with the Maharashtra government in September final year for setting up of a PSU in the state. The PMUs in various states will also be seeking at establishing processes to assistance MSMEs adopt digital platforms like PSBLoansIn59Minutes, listing on stock exchanges, GeM portal, and so on.
SIDBI had posted a 9 per cent net profit development to Rs 630 crore in Q3 FY21 from Rs 578 crore in Q3 FY20 in spite of the Covid effect on lending to MSMEs. The non-interest earnings for the bank was up 16.7 per cent to Rs 154 crore in Q3 FY21 vis-à-vis Rs 132 crore in the year-ago period. The net interest earnings grew 3 per cent to Rs 840 crore in Q3 FY21 from Rs 816 crore in Q3 FY20.