Monday, March 10, 2008

SIDBI Finanancial Inclusion 2000 Cr. Package

SIDBI will roll out new equity scheme for SME through Rs.2000 Cr. risk capital fund announced in budget.
Besides the funds allocated in the Budget, SIDBI will seek participation of private equity players and venture capitalists for injecting risk-bearing equity capital into small and medium enterprises (MSME), the bank's Deputy Managing Director Rakesh Rewari said.
This 2000 Cr. fund is in addition to another Rs.2000 Cr. fund set aside for refinancing to MSME.

"Equity financing is very low in the MSME sector. Of the total finance raised by small firms, only five per cent is contributed towards equity and the rest 95 per cent is in the form of debt," Additional Secretary in the MSME Ministry Jawahar Sircar said. The large industries, on the other hand, manage to meet 45 per cent of their fund requirement in the form of equity, he said.

Earlier this week, SIDBI Venture CEO A K Jaipur said at an MS ME seminar here that availability of equity capital can be increased by promoting more Angel Clubs in the country. "Angel clubs have limited presence in India. There are more than 2,500 in the US compared to only a handful in India," he had said.
Read the full article on Financial Express

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