SIDBI plans to focus on micro-finance in Orissa

Aims at providing Rs 66 crore under this head during the current fiscal, and plans to set up a multi-dimensional resource centre in Bhubaneswar.

The Small Industries Development Bank of India (SIDBI), which provides capacity-building support by way of grants, bulk loans for on-lending and equity support to small and micro enterprises, will focus on the micro finance in Orissa.

It aims to provide Rs 66 crore under this head during the current fiscal and has achieved Rs 50 crore disbursement by December end, 2007.

"We are going in a big way in the micro-finance sector to provide need-based financial support to poor and the under privileged through well performing NGOs or micro-finance institutions (MFIs)", Kirpal Singh, general manager, SIDBI, told Business Standard.

He said, to give further impetus to the micro-finance movement in Orissa, SIDBI has set up a special cell for micro-finance in the eastern zone, headed by a zonal manager. Besides, as a proactive measure for financial inclusion, it has taken several initiatives to increase the flow of micro-finance assistance in the state.

While 15 non-governmental organisations (NGOs) and MFIs have been provided with Rs 100 crore assistance in the state, it has benefited 1,50,000 beneficiaries, mostly women, he pointed out.

This assistance provided to these bodies cover the entire state including the backward districts of Koraput, Bolangir, Kalahandi and Gajapati. Activities like bamboo craft, weaving, tailoring, handlooms and handicrafts, petty trade, applique works, stone carving and rice processing are covered under this programme.

Further, the bank is attaching high priority for capacity building of the MFIs. It has formed a capacity building need assessment team for assessing the nature of the capacity building needs of the MFIs. It is envisioned that the MFIs or NGOs should also focus on backward and forward linkages like supply of raw materials and marketing support to micro-units.

Grant assistance of about Rs 2 crore has been provided by the bank to 15 MFIs for meeting their capacity-building requirement such as training, MIS, software, consultancies, infrastructure and exposure visits.

Singh said, to improve the flow of credit to small and medium enterprises (SMEs), the bank has taken strategic business initiatives by broad-basing certain schemes in line with the changing requirements of the sector.

While the total disbursements by SIDBI to the SMEs in the state reached Rs 1,050 crore by the end of December 2007, it has helped in setting up or expansion of more than 100 units and benefited about 50 entrepreneurs in the state.

Similarly, under indirect assistance more than 25,000 units have been assisted across the state.

It also plans to set up a multi-dimensional resource centre for micro finance in Bhubaneswar.

The state-of-the-art resource centre will meet the training requirements of all the stakeholders, including the development of financial institutions, commercial banks, non-banking financial companies, NGOs and entrepreneurs.

It is expected to provide capacity-building support to the institutions and the practitioners in the sector.