The Rajasthan Industries Department and Small Industries Development Bank of India (SIDBI) entered into a Memorandum of Understanding for establishing a Project Management Unit (PMU). The unit would facilitate need-based intervention, increase access to financial products, and work to create a conducive environment for Micro, Small, and Medium Enterprises (MSMEs) in the state, following the vision given by the CM Ashok Gehlot. The MoU was signed by Commissioner Industries, Ms. Archana Singh, and General Manager, SIDBI, Mr. Balbir Singh , in presence of Industries Minister of Rajasthan, Mr. Parsadi Lal Meena, Principal Secretary Industries, Mr. Naresh Pal Gangwar, and Joint Secretary Industries department Ms. Chinmayee Gopal. “The state government is persistently working to promote industries in the state, the present MoU is a step in the direction of strengthening the MSMEs. It would help them with finance options and overcome other challenges,” said Industries Minister, Mr. Parasadi Lal Meena.
SIDBI is a principal financial institution for MSMEs and is listed among the All India Financial Institutions by the RBI. Following the MoU, a Project Management Unit will be deployed by SIDBI with the Government of Rajasthan to design schemes/programs in the areas of equity support, interest subvention, resolution of stressed MSMEs, supporting MSME entrepreneurs, and facilitate other need-based intervention.
“Along with increasing outreach of state government schemes, the MoU will help create a framework for evaluating the impact of government interventions and provide inputs for policy advocacy,” said Principal Secretary, Industries, and MSME department. There has been a rise in the number of applicants for new MSMEs following the implementation of the Rajasthan Investment Promotion Scheme 2019. The MoU is also intended to help these budding enterprises.
“The PMU may also reach out to the new applicants and offer assistance with choosing finance options. The small businesses are likely to benefit from SIDBI expertise in the area,” said Industries Commissioner, Ms. Archana Singh. This development initiative is aligned to expectations laid down in UK Sinha Committee on MSMEs set up by RBI. It envisions more focused engagement of SIDBI with State Governments for MSME promotion & development. The PMU will also prepare the process for handholding MSMEs in the State for their onboarding onto digital platforms such as PSBLoansIn59Minutes, Stock Exchange listing, e-commerce platforms such as Government e-Marketplace, etc.
On this occasion, Shri V. Satya Venkata Rao, Deputy Managing Director of SIDBI said, “We have already initiated the process of collaborating with State Governments for more focused engagement in various forms for strengthening the MSME Ecosystem. We have appointed an expert agency for manning the PMUs in 11 states namely, Assam, New Delhi, Haryana, Rajasthan, Uttar Pradesh, Uttarakhand, Gujarat, Maharashtra, Karnataka, Andhra Pradesh, and Tamil Nadu in the pilot phase. We look forward to greater convergence with partner states and explore how some of the state-centric schemes/programs/subsidies can be linked/onboarded on our digital offerings.”