Small Industries Development Bank of India (SIDBI) has inked a the Memorandum of Understanding (MoU) with Government of Maharashtra to develop the micro, small and medium enterprise (MSME) ecosystem in the state. This decision has been taken on the lines of the recommendations of the Upendra Kumar (UK) Sinha Committee on MSMEs set up by the Reserve Bank of India (RBI) envisaged more focused engagement of SIDBI with State Governments for MSME promotion and development.

• The MoU was signed by Dr. Harshadeep Kamble, IAS (Indian Administrative Service), Secretary (Small & Medium Industries) & Development Commissioner (Industries), Government of Maharashtra and V. Satya Venkata Rao, Deputy Managing Director, SIDBI, in the presence of Subhash Desai, Cabinet Minister of Industries, Maharashtra State.

• As a part of MoU, Project Management Unit (PMU) will be deployed by SIDBI in Maharashtra.

Role of PMU:

-It will design programmes in the areas of equity support, interest subvention, resolution of stressed MSMEs, supporting MSME entrepreneurs and facilitate other need-based intervention.

-The PMU will also prepare the process for handholding MSMEs in the State for their on boarding to digital platforms such as PSBLoansIn59Minutes, Stock Exchange listing, e-commerce platforms such as Government e-Marketplace etc.

-It will also engage in mapping repository of good practices.

Point to be noted:

It should be noted that SIDBI has appointed an expert agency for setting up PMUs in 11 states Assam, New Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand, Gujarat, Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu in the pilot phase to cooperate closely with State Governments to strengthen the MSME enterprise ecosystem.

About Small Industries Development Bank of India (SIDBI):

It is principal financial institution engaged in the promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs).