The Role of Small Industries Development Bank Essay
International Conference on Technology and Business Management March 26-28. 2012 The Role of Small Industries Development Bank of India (SIDE) in developing the Micro, Small & Medium Enterprises (Mess) in India And Charismatic [email protected] Com BIBS, Hydrated 1. Introduction to MESS The Micro, Small and Medium Enterprises (Mess) sector plays a vital role in the growth of our country in creating employment, exports, gross industrial value of output, gross value added, investment in fixed assets, contribution to GAP, and giving boost to manufacture, service and infrastructure sectors.
The opportunities in MESS sector are enormous due to the factors like Less Capital Intensive, Extensive Promotion & Support by Government, Reservation for Exclusive Manufacture, Funding by way of Finance & Subsidies, Reservation for Exclusive Purchase by Government, Export Promotion, great demand in the domestic market size, export potential and so Under the Micro, Small and Medium Enterprises Development (MESSED) Act, 2006 the filing of Memorandum (Registration) by Entrepreneurs intending to establish a Micro, Small or Medium Enterprise is discretionary and not mandatory.
As such, the number f Mess functioning in the country as per Quick Results of 4th All India Census (2006-07), in the registered and unregistered categories are 1. 55 Million (5. 94%)
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It helps them to expand, diversify and even rehabilitate. SIDE also interfaces with Non-Governmental Organizations (Nags) involved in micro-lending, as well as donor agencies engaged in the development of Mess. It supports entrepreneurs both in manufacturing and service industries. Thus, it helps Mess in many ways. 2. Need and Importance (Significance) SIDE plays a significant role in promotion, financing and development of Mess and coordinating the functions of institutions engaged in similar activities.
Its sphere of activities include (I) Direct Finance Operations to Mess and Service Sectors besides Infrastructure; (it) Indirect Finance by way of resource support to Banks, NBS, CIFS, ND other Central Financing/Development Agencies, Development of Micro Credit Institutions; (Ill) Promotion AT Escalate Institutions Like venture capital, Rating Agency, Credit Guarantee Fund, Asset Reconstruction Company and so on; and (v) Nodal Agency for Government of India MESS Schemes like Technology Upgrading Fund Scheme (TEES), Credit Linked Capital Subsidy Scheme (CLASS), Integrated Development of Leather Sector Scheme, Development of Infrastructure Development Projects and a few.