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SIDBI Provides Rs 600 Cr To Maha Govt Under Cluster Development Fund

An in-principle approval letter was been issued by SIDBI to the government for an amount of Rs 600 crore for reviving and upgrading various ITIs and Polytechnics

Photo Credit : PTI

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Small industries development bank of India (SIDBI), the financial institution engaged in the promotion, financing and development of micro, small and medium enterprises (MSMEs) has provided the first approval under the SIDBI cluster development fund (SCDF) to the Maharashtra government.

An in-principle approval letter was been issued by SIDBI to the government for an amount of Rs 600 crore for reviving and upgrading various ITIs and Polytechnics. These institutions complement the MSME clusters in the state through the availability of properly trained skilled manpower through hands-on skill training, which is the demand of the MSMEs, according to the official statement.

Sivasubramanian Ramann, IA&AS, Chairman and Managing Director, SIDBI said, “The active participation of state government-run institutions through their upgradation and revival, in the journey of MSME development, shall provide the necessary impetus to fulfilling the much-desired need of availability skilled manpower of the MSME ecosystem and shall facilitate achieving a higher efficiency by the system.”  

The expert committee on MSMEs headed by U.K. Sinha has recommended a more focused engagement of SIDBI with state governments for MSME development and promotion including the use of priority sector shortfall (PSS) funds to create a low-cost lending window for state governments for infrastructure projects in clusters.