SIDBI commits Rs. 10-cr to DICCI SME Fund for Dalit entrepreneurs
Becomes the first FI to support the DICCI SME Fund created to support SC/ST/ Dalit entrepreneurs
Mumbai, June 6, 2013: SIDBI, the apex financial institution for promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs), has become the first financial institution (FI) to support the first-of-its-kind DICCI SME Fund for investment in companies promoted by SC/ST entrepreneurs.
In the presence of Union Finance Minister Shri P. Chidambaram, SIDBI’s Chairman and Managing Director Shri Sushil Muhnot handed over a commitment letter to Shri Milind Kamble, Chairman of DICCI (Dalit Indian Chamber of Commerce & Industry) contributing Rs. 10 crore to the Rs. 100-crore corpus of DICCI SME Fund. The Fund will be largely ‘sector agnostic’ and will be investing in high growth companies (promoted by SC/ST/ Dalit entrepreneurs) that are SMEs; members of the Dalit Indian Chamber of Commerce & Industry (DICCI) and with proven track record and management capability.
Also present on the occasion were Shri Chandra Bhan Prasad (Mentor, DICCI), Smt. Kalpana Saroj (Chairperson, NBAC), Shri Ashish Kumar Chauhan (MD & CEO, BSE), Shri Prasad Dahapute (Founder and Chairperson of the Varhad Group and Director, Varhad Investment Managers) and Shri Sachin Gupta (Director, Varhad Capital). Hon. Union Finance Minister Shri Chidambaram also released a special report titled “MSME: The Opportunity Knocks” on the occasion.
Hon. Union Finance Minister Shri Chidambaram complimented SIDBI for being the first FI to contribute to the DICCI SME Fund and urged other FIs to do the same. He also urged every branch of every bank in the country to support one SC/ST/Dalit entrepreneur. He encouraged more SMEs to list on the stock exchanges.
Speaking on the occasion, Shri Sushil Muhnot said, ”India’s MSME sector has 30 mn units, employs more than 70 million people and contributes 45% to the country’s industrial production and 40% of exports. Union Finance Minister has often said that for accelerated economic development, we need the micro units to grow to small enterprises and then to mid-sized firms and then large companies. For this to happen, they need both debt and equity. The availability of a formal source of equity is very less and therefore Hon. Finance Minister created the Rs. 2,000-cr Risk Capital Fund through SIDBI. This Fund is being used by SIDBI to provide risk & venture capital to SME focused funds like DICCI SME Fund. The DICCI SME Fund will meet the twin objectives of job creation and also inclusive growth as well as social equity.”
“I support DICCI’s slogan of encouraging job seekers to become job givers. And I also encourage the SC/ST/ Dalit entrepreneurs to visit smallb.in, which is SIDBI’s initiative to stimulate youth entrepreneurship and help all others to set up their own enterprises. Smallb.in provides information on how to nurture and develop ideas and also how to evaluate them. It also helps them prepare business plan and project reports. It lists various schemes for the registration required for creating an SME or MSME. It also counsels them on how to seek assistance from banks,” added Shri Muhnot.
SIDBI is set up under an Act of the Indian Parliament as the apex financial institution for promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs). Set up in 1990, SIDBI has been extending credit facilities and promotion & development support for the growth of MSME sector in India. SIDBI has been instrumental in taking up various policy initiatives for the MSME sector. Given the importance of micro enterprises in the Indian economy in terms of employment, SIDBI has been implementing various projects for increased lending to micro enterprises and for capacity building of micro entrepreneurs and capacity building of Banks, NBFCs, MFIs, etc. lending to the segment.