The Hindu : Tamil Nadu News : Nod for 3 per cent interest subsidy to small units

Online edition of India's National Newspaper
Friday, Oct 26, 2007
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Tamil Nadu

Tamil Nadu

Nod for 3 per cent interest subsidy to small units

Staff Reporter

TIRUPUR: The State Government has approved the proposal by the Small Industries Development Bank of India (SIDBI) to give three per cent interest subsidy for small scale industries that are going in for modernisation and technology upgradation, said K.M. Nair, Chief General Manager, South Zone of SIDBI.

The facility hitherto was given to small industries which get loans from Tamil Nadu Industrial Investment Corporation. The interest rebate is now extended to SIDBI clients too. This scheme will be effective for three years.

Under the rural industries programme implemented in Salem, Namakkal and Madurai and Sivaganga districts, the SIDBI had appointed agencies to help entrepreneurs. The agencies would give handholding services, right from identifying the project, finding market, and preparing documents.

At a customers’ meet here recently, Mr. Nair said the SIDBI was now providing working capital to its clients through an arrangement with Industrial Development Bank of India.

As the SIDBI was awaiting the approval from Reserve Bank of India to extend the working capital, which was a forte of commercial banks, infrastructure of IDBI would be used for day today transactions.

The bank was now supporting small and medium enterprises by extending equity support to them. “Most of the entrepreneurs run their units by their own money or through loans. We will provide equity assistance to those who are not in a position to raise funds. It will be on need based and the quantum may not exceed 25 per cent of the project cost,” he added.

Responding to the appeal by exporters and job working units in knitwear industry, Mr. Nair said the bank had agreed to reschedule repayments and restructure the loan on a case by case basis due to the appreciation of rupee against US dollar.

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