SIDBI provides first approval to Tamil Nadu govt for development of MSME clusters

The Small Industries Development Bank of India (SIDBI)  has provided the first approval to the Government of Tamil Nadu under the SIDBI Cluster Development Fund (SCDF). This initiative is aimed at upgrading various existing micro, small and medium enterprise (MSME) clusters, and for developing new industrial infrastructural facilities in Tamil Nadu.

Recently, SIDBI had announced the launch of a series of initiatives focused on the development of MSMEs, one of which included cluster outreach programmes in 11 states including Assam, Andhra Pradesh, Rajasthan, Gujrat, Haryana, Maharashtra, Delhi, Uttar Pradesh, Uttarakhand, and Tamil Nadu.

SIDBI also announced the setting up of Project Management Units (PMUs), which will work in coordination with the former as well as state governments on various policies, schemes, developmental programmes, and more for the embattled sector.

Commenting on this development, Sivasubramanian Ramann, Chairman and Managing Director of SIDBI, said, "The thrust shall be laid on clusters in sectors or subsectors which can directly benefit the MSMEs in the state and to bring them to a level ‘NEXT’ wherein they emerge vibrant, higher on the value chain and become sustainable."

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Ramann further added that SIDBI shall complement these with its customised direct lending products being channelised in the supported clusters, setting an example for other institutions to adopt and replicate.

"On need basis SIDBI shall also examine supporting the soft infrastructure issues in select clusters relating to technology, skilling/upskilling, energy efficiency, market and credit connect. A pilot has been launched in Ambattur leather cluster," he was quoted as saying.

The SCDF has been set up with the support of the Reserve Bank of India (RBI) to facilitate the upgradation and renovation of MSME infrastructure. Major sectors that will be covered under this fund include industrial, agri-allied, social, eco-space and more.