SIDBI’s state-wise MSME programme now partners with Assam to offer these benefits to small businesses

Ease of Doing Business for MSMEs: Small Industries Development Bank of India (SIDBI) — the principal financial institution focusing on micro, small, and medium enterprises (MSMEs) in the country will be deploying a ‘project management unit’ (PMU) in the northeastern state of Assam to develop the local MSME ecosystem. The decision was taken as part of a memorandum of understanding (MoU) signed between SIDBI and the Assam government on Saturday. The PMU will support the state government in making necessary interventions to boost the efficacy of MSMEs in Assam. The partnership with Assam is part of SIDBI’s initiative to set-up such PMU in 11 states including Gujarat, Odisha, Maharashtra, Tamil Nadu, New Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand, Andhra Pradesh, and Karnataka to strengthen MSMEs in respective states.

The PMU to be deployed in Assam will work towards key areas viz, first, designing of the scheme(s) in the areas of equity support, interest subvention, resolution of stressed MSMEs; second, study of the existing framework of schemes, interventions, projects, etc. available for benefit of MSMEs and suggesting modifications to remove bottlenecks. Third, the PMU will look at preparing a process for handholding local MSMEs for their onboarding onto digital platforms such as PSB Loans In 59Minutes, stock exchange listing, e-commerce platforms such as Government eMarketplace (GeM) and more; and fourth, facilitating awareness on activities and schemes for MSMEs by the state government under the Atmanirbhar Bharat programme.

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“The State of Assam is proactively looking this sector as a solution for employment and growth,” said Assam’s Assam Parliamentary Affairs Minister Chandra Mohan Patowary. The MoU signed with the Assam government was the ninth such tie-up by SIDBI. The pro-MSME financial institution will also place an expert agency with the state nodal unit. Along with the MoU, SIDBI also initiated a collaboration with Assam State Rural Livelihood Mission to “serve income-generating activities at the base of the pyramid including migrants,” SIDBI said in a statement.

The state-wise MSME support programme by SIDBI is aligned to the UK Sinha Committee’s expectations on MSMEs for driving engagement of SIDBI with state governments to promote and develop Indian MSMEs. Meanwhile, SIDBI had earlier this month launched a Do-It-Yourself (DIY) web module for MSMEs that find it difficult to prepare their loan restructuring proposals on their own under the restructuring scheme by the Reserve Bank of India (RBI). The portal allows borrowers to key in only the most essential data of their past financials, future projections, and restructuring requirement for the proposal. MSMEs would also be able to generate reports for submission to banks.