The Hindu : Kerala / Thiruvananthapuram News : SIDBI to support micro-credit

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Saturday, Feb 09, 2008
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Kerala

Kerala - Thiruvananthapuram

SIDBI to support micro-credit

N.J.Nair

Action plan ready to promote micro-credit ventures of NGOs

SIDBI will assess growth potential of the units
Aid to be given to IT and IT-enabled services

THIRUVANANTHAPURAM: The Small Industries Development Bank of India (SIDBI) is keen on supporting micro-credit ventures as well as small and medium IT ventures in the State.

Considering the growth potential of both sectors, the bank is willing to lend liberal financial assistance to imaginative projects that are coming up in the State, southern zone chief general manager K.M.Nair told The Hindu here on Friday. Mr. Nair, who is here on an official mission, says that the bank has already worked out an action plan to promote micro-credit ventures of non-governmental organisations as well as banking and non-banking institutions.

For offering financial assistance, SIDBI will assess the growth potential of the micro-credit units and rate them on the basis of their performance. Lack of professionalism has been identified as one of the major short-comings of such enterprises. In such instances, the bank will provide financial assistance for capacity-building, mainly for forming a group of dedicated professionals and field workers, developing a scientific and efficient accounting system and building up infrastructure facilities. Interest-free funds will be provided for building the capacity of such agencies. Equity participation of the bank in such projects has also been worked out.

Against the target to disburse Rs.600 crore in the micro-credit sector during 2007-08 in the South Indian States, the bank has already given Rs.400 crore. Already 120 units are functioning with the support of the bank and it would soon be enhanced to 200 or more units.

Liberal assistance will be given to IT and IT-enabled services in Kerala. The vast pool of trained human resources in the State still remains untapped. There is a dearth for imaginative and feasible projects. “Educated youngsters should avail themselves of the entrepreneurial, management and skill development programmes being imparted by the bank through accredited agencies. The Credit Appraisal Rating Tool (CART), a software of the bank, has made project appraisal easy. New projects could be rated within an hour, he says. SIDBI is already supporting IT enterprises in Chennai, Bangalore and Karnataka. Kochi and Thiruvananthapuram could be developed as IT hubs with the financial support of the bank, says Mr.Nair.

Mr.Nair sought to put at rest controversies over new projects. Such controversies will only impede the flow of investors to the State, he says.

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