SMERA - SIDBI is implementing a World Bank-led multi agency...

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SIDBI is implementing a World Bank-led multi agency / multi activity Project on Financing and Development of SMEs. While SIDBI has been assigned with the responsibility of implementing the project, the Banking Division, Ministry of Finance, Government of India is the nodal agency for the same. The IBRD, Department for International development (DFID) UK, KfW Germany and GTZ Germany are the international partners in the Project. The Project is aimed at making SME lending an attractive and viable financing option as also facilitate increased turnover and employment in the sector. In order to achieve its aims, the Project, besides upgrading direct flow of credit to SMEs, addresses demand side issues of credit and streamlining access to qualitative financial and non-financial enterprise oriented services. This is being done with support of Technical Assistance to be utilised for strengthening the credit information system, credit rating, credit scoring, structuring of innovative products, capacity building of the participating banks, policy and regulatory issues and promotion of market oriented business development services for the sector. Components: The Project has three major components: • Credit facility from the IBRD and KfW Germany • A Risk Sharing Facility • Technical Assistance from DFID, UK and GTZ, Germany Financing Pattern Lending Partner Amount in USD Purpose Tenor / Utilisation Period International Bank for Reconstruction and Development (IBRD) 120,000,000 Credit Facility (USD 120 million) 15 Years Department for International Development (DFID), UK 37,000,000 Technical component (GBP 20 million) 7 Years Kreditanstalt fur Wiederaufbau (KfW), Germany , Line of Credit Technical Assistance 52,500,000 1,200,000 Credit Facility (Euro 43.5 million) Technical Component (Euro 1 million) 12 Years 4 Years Deutsche Gesellschaft fur Technische Zusammenarbeit (GTZ), GmbH 6,000,000 Technical Component in Kind (Euro 5 million) 3 Years (Phase I) A) Credit Facility (CF) • The CF primarily addresses the financing needs of SMEs and enables them to access longer-term funds required for capital formation and technological upgradation. 1
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• The Facility is being implemented by SIDBI in association with Participating Finance Institutions (PFIs) and is being utilised for extending credit to existing/ new SMEs. • The Project covers Small and Medium Enterprises and industry related service sector establishments as defined by the Government of India, from time to time. • The Project has been designed in such a way as to encourage SMEs adopt best practices followed internationally on the environmental and social issues. Industries falling in Negative List of World Bank are excluded from the purview of the Project. B) Risk Sharing Facility (RSF)
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SMERA - SIDBI is implementing a World Bank-led multi agency...

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