SIDBI inks deal to boost small enterprises in northeast

GUWAHATI: In an endeavour to boost micro, small and medium enterprises (MSME) sector in the northeast, Small Industries Development Bank of India (SIDBI) on Friday inked a deal with the North Eastern Development Finance Corporation Ltd (NEDFi).

In accordance with the deal, the SIDBI will allot Rs 50 crore to NEDFi for refinancing the MSME in northeastern states. "We are hopeful that the deal will be instrumental in fostering the MSME and micro sector in the northeastern region. The SIDBI is providing Rs 50 crore to NEDFi for the months of January, February and March. NEDFi is expecting a lot of new entrepreneurs and new MSME and micro units will come up in the region as a result of the deal", said BP Muktieh, CMD of NEDFi.

He added that the NEDFi wants to diversify source of funding and SIDBI has given access of a national level organization to the former for development of the entrepreneurs. At present, NEDFi has business facilitation centres in Aizawl and Gangtok. NEDFi has been able to produce 25 sucessful entrepreneurs through its business facilitation centre in Aizawl.

"NEDFi was growing at a rate of 30 per cent annually. It has business worth Rs 900 crore in the region. We are expecting that the total business of NEDFi will touch Rs 2000 crore in next three to four years," said Muktieh. The SIDBI is refinancing banks and other institutions across the country.

Expressing happiness over the deal signed between SIDBI) and NEDFi, CMD of SIDBI Sushil Muhnot said that they are keen to utilize NEDFi as a platform in the northeast to reach out to young entrepreneurs. He added that SIDBI would assist industries whose starting business is between Rs 50,000 and Rs 10 lakh. Muhnot said the SIDBI will help in capacity building of the existing MSME units in the region.