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Journalism of Courage
Small Industries Development Bank (SIDBI) of India will soon roll out new equity schemes for small and medium enterprises through a Rs 2,000-crore risk capital fund announced in the Budget.
Besides the funds allocated in the Budget, SIDBI will seek participation of private equity players and venture capitalists for injecting risk-bearing equity capital into small and medium enterprises (MSME), the bank’s deputy managing director Rakesh Rewari said.
“We are working on various instruments and will be coming up with a national plan for reaching risk capital to MSME firms,” he said. While proposing two funds of Rs 2,000 crore each for risk capital financing and refinancing to MSME, FM P Chidambaram had said in his Budget speech “financial inclusion can be taken forward by expanding the reach of NABARD, SIDBI and NHB”.
Rewari said the proposed fund would help solve the problem of MSME for raising equity finance which is scarce compared to debt.
