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Making Future Ready Sustainable Cluster Infrastructure

by News Monks

The Reserve Bank of India on the advice of Government of India has created a special low-cost funding avenue for State/UT governments with SIDBI. The said Fund viz. SIDBI Cluster Development Fund (SCDF) has been supporting State/ UT Governments by way of soft loans to develop/create/upgrade various infrastructure facilities in & around MSME Clusters. In first year of full operations under SCDF, SIDBI has assisted a wide variety of projects for MSME cluster infrastructure development emanating from varied departments of several State Governments viz: Industries, MSME, Public Works, Power, Education/Skill etc. and having been prioritised by respective State/UT Finance Departments. SIDBI has been organising regular learning / cross-learning events, both in online and physical mode for the benefit of all stakeholders including Government officials.


In SIDBI’s interaction with various State/ UT Governments one main roadblock which emerged is the lack of exposure and guidance for undertaking infrastructure development projects. In this backdrop a one day thought processing workshop for State/ UT Government officials having main essence of “Making Future Ready Sustainable MSME Cluster Infrastructure was organised on 15th April 2023 at Goa. The workshop was attended by officials from 24 States/UTs who deliberated on topics of key importance for development of Nation by way of creating future ready, sustainable infrastructure for MSMEs and entrepreneurs to grow.


Hon’ble Minister for Industries Government of GOA, Shri Mauvin Godino graced the workshop as Guest of Honour and in his address he emphasized about development of Environment conscious Infrastructure and Industrial growth for a State like Goa which is rich with biodiversity. Hon’ble minister also spoke about enhancing competitiveness of MSMEs through proper hand-holding by Institutions like SIDBI and complemented SIDBI for its efforts in varied domains for development of MSME ecosystem which have started showing its results on ground. He suggested that SIDBI should further deepen its ties with State Government for furthering these initiatives. Shri Godino emphasized on finding Industrial growth solutions with promotion of local micro industries like export of famous Goan food items viz Vivenka.


The keynote was delivered by Shri S. Ramann CMD, SIDBI, who emphasized on the need to keep vibrancy in enterprise development models. He mentioned that SIDBI has prioritized cluster development theme but can only evolve sustainable strategy in coordination with stakeholders, key being state governments. He called upon all stakeholders to walk together for overall development of the MSME ecosystem in the country.


Earlier during the welcome address, Shri Sudatta Mandal, DMD SIDBI illustrated SIDBI’s role in strengthening the enterprise value chain with various offerings like state collaborative enhanced guarantee coverage, State specific funds to support start-ups, availability of an array of concessional credit products offered by SIDBI towards Greening of MSMEs.


Shri V. Satya Venkata Rao, DMD SIDBI illustrated the Bank’s role in strengthening the MSME ecosystem and wide coverage of SCDF scheme. He called upon States to formulate strategies for planned cluster development which shall reduce regional imbalance.


The sessions in workshop included the state specific offerings to state/UT governments and panel discussion on experience sharing by State Government officials.


Shri Ashish Kumar Singh IAS, Additional Chief Secretary, Accounts and Treasury- Finance Department Maharashtra Tourism / Service sector as an Industry shared his experience about creation of infrastructure in service sector i.e Tourism in towards World and its way forward.


Smt S Madhumati IAS, Managing Director Tamil Nadu Small Industries Development Corporation spoke ways to cater to growing demand of modern industrial infrastructure in industrially developed states. She also shared about various projects being undertaken by the State Govt. in the State of Tamil Nadu under SCDF.


Shri Pravimal Abhishek Polumatla, IAS, Managing Director, Goa Industrial Development corporation shared his views on investing in cluster infrastructure and creating appropriate ecosystem for existing and new clusters.


About SIDBI Cluster Development Fund Scheme

It may be mentioned that SIDBI is the principal Development Financial Institution for promotion, financing and development of the Micro, Small and Medium Enterprises (MSMEs) as well as for coordinating the functions of financial institutions engaged in similar activities. With an aim of Holistic development of MSME ecosystem in Country and under guidance of recommendations emanating from the report of Expert Committee on MSMEs (Chairman: Shri U K Sinha), SIDBI is focusing on engagements with State Governments/ UTs in domains of MSME development and promotion.

SIDBI has setup an exclusive Cluster Development Vertical since August 05, 2021. The purpose of said fund is holistic in nature covering nearly all segments of MSME cluster development falling under three broad categories can be covered under SCDF viz (1) Industrial and Agri-allied sectors in the MSME eco-space, (2) Social Sector projects in and around MSME clusters and (3) Connectivity to MSME Clusters. The support will be offered by SIDBI to State Governments/ UTs as a soft loan for a tenure of 7 years. Since launch of SCDF scheme, necessary handholding is being provided to State Governments for understanding the scheme modalities. Till Date, ` 5546.50 crore has been sanctioned to 10 States and 1 UT towards 91 projects (64 greenfield projects and 27 brownfield projects). It is estimated that 84,127 MSMEs, shall be benefitted and direct employment of 5,81,873 and indirect employment of 7,31,397 shall be created from assisted projects.

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